SVB collapse

flaneurs_lobster

To think that the actual bank run (as in people queuing round the block to get their money out) may be a thing of the past. 

Went out at lunch time in September 2007 to see the queue at Moorgate's Northern Rock branch, first run on a UK bank since the 1860's. Was tipped off by a pal who worked for one of the regulators, just in case I had an account (I didn't).

arnoldy

Eye2021 said:

My top tip - make sure your deposits in each bank are less than £85k

I suppose the new smaller 'challenger banks' are most at risk, but who knows ?

As predicted Virgin Money (-9%) and Bank of Georgia Group (-9%) are looking a bit shaky on the markets today. Make sure your deposits in each (any) bank are less than £85k. Sound advice from Eye 2021
People are fleeing to the bigger banks for safety. 

diystarter7

arnoldy said:

Eye2021 said:

My top tip - make sure your deposits in each bank are less than £85k

I suppose the new smaller 'challenger banks' are most at risk, but who knows ?

As predicted Virgin Money (-9%) and Bank of Georgia Group (-9%) are looking a bit shaky on the markets today. Make sure your deposits in each (any) bank are less than £85k. Sound advice from Eye 2021
People are fleeing to the bigger banks for safety. 

Hi
The highlighted bit. Please be seriously warned that its not "any" bank as banks, building societies and other saving outfits can share a licecne,

NB: The safety net applies per licence and not per bank, saving institutions etc

Just a polite heads up

Read the link from MSE below and some of you may be very shocked to learn your saving place shares a licence with another

https://www.moneysavingexpert.com/savings/safe-savings/

Shocking_Blue

Just a question,
Is cash in ISA stocks and shares accounts protected similarly (e.g that's been de-invested but kept as cash on the account for future ISA investment (thinking of iweb, which is part of Halifax, I think))?
Thanks

Sea_Shell

Some US bank stocks have halted trading.   60-70% drops for some.

Confidence doesn't appear to have been restored by Gov intervention. ☹️

Tucosalamanca

Malthusian said:

It has been suggested that stress testing introduced after GFC is no longer fit-for-purpose, as communication (social media) and the ability to access the banking system is now instantaneous. This was not the case in 2008/09 where smart phones and social media barely existed.

Everyone and his nan was already on Facebook in 2007, and smartphones were increasingly popular.

The data suggests otherwise.
Facebook had 50million global users in October 2007 (350m by end of 2009) versus 2.3bn users today.
Android and iPhone 3G didn't even launch until 2008, sales were around one tenth of what they are today.

Albermarle

Shocking_Blue said:

Just a question,
Is cash in ISA stocks and shares accounts protected similarly (e.g that's been de-invested but kept as cash on the account for future ISA investment (thinking of iweb, which is part of Halifax, I think))?
Thanks

Normally the cash is kept with one or more of the big banks.

diystarter7

Sea_Shell said:

Some US bank stocks have halted trading.   60-70% drops for some.

Confidence doesn't appear to have been restored by Gov intervention. ☹️

Hi
Confidence building takes time. The practice to halt trading and cool off is a good practice.

People rushing to banks to take monney out when they dont need does not help

the bank that went uder, mnay were interest i it - 

Shocking_Blue said:

Just a question,
Is cash in ISA stocks and shares accounts protected similarly (e.g that's been de-invested but kept as cash on the account for future ISA investment (thinking of iweb, which is part of Halifax, I think))?
Thanks

Hi
Give the Halifax a call and put your mind at rest or act on it
Take the persons name etc that gives you the advice/etc

Good luck

GazzaBloom

Sea_Shell said:

Some US bank stocks have halted trading.   60-70% drops for some.

Confidence doesn't appear to have been restored by Gov intervention. ☹️

Indeed, in such times I reach for Jack Bogle's guidance "don't do something, just stand there"

Easier said for the likes of me, in accumulation, than said for those of you in decumulation.

I plan to have a 3 years living expenses cash buffer at the point of retirement. My uncertainty would be when to switch drawdown from stock funds portfolio to the cash in times like this week...do you let the week ride out, the month, the quarter or the year? Do you set a losses trigger point, 5%? 10%, 20%...??

Do you switch from capital growth funds to high dividend paying funds at the point of retirement and carry on regardless?

It's far less worrisome when you have the safety cushion of a monthly wage coming in...

Sea_Shell

Personally, I'm sitting on my hands.

Watching Bloomberg is quite interesting.