Metro Bank - In difficulty?

GeoffTF

Section62 said:

Experience suggests a bail-out or takeover is the more probable outcome if the situation really is as dire as some people suggest.  Metrobank's customer base will be valuable to someone.

Even that seems to be a long way down the road, if it happens at all.

stripling

stripling said:

I like Metro Bank. Smooth, clear app, excellent transfer system, everything simple, efficient and clean. I'm sure they're not 'going under' they are just fund raising. 

"

"Metro Bank shares rebound amid reports of £600m capital offer". [Guardian News] 

Lions_89

Section62 said:

Lions_89 said:

wmb194 said:

Username_gone said:

What would happen to the safe deposit boxes customers have with them should they fail? Have one with them but can't find anything online that explains safe deposit boxes should the bank collapse and in-branch staff didn't seem to know exactly.

At some point the administrators of the bank would ask you to come and pick up your property.

If the bank/branch is taken over by another business it would either be business as usual or again you'd be asked to collect your property.

And how long will that take?  Best to get anything important out now don’t you think?

The key thing would be whether there was a suitable alternative place to keep any valuables.

Not much point taking valuables out of an already-paid-for secure storage on a just-in-case "safety" basis, only to have the valuables stolen from your home becuase you haven't got anywhere else to keep them (yet).

There really is no need for people to spread panic.

Experience suggests a bail-out or takeover is the more probable outcome if the situation really is as dire as some people suggest.  Metrobank's customer base will be valuable to someone.

I’ve not seen people spreading panic, and unless someone is being obtuse I think it’s fairly obvious you would transfer the items to another box. The issue is if the bank gets taken over there may be a delay with getting access to the box. As I said I don’t think they will go under.

Username_gone

Lions_89 said:

Username_gone said:

What would happen to the safe deposit boxes customers have with them should they fail? Have one with them but can't find anything online that explains safe deposit boxes should the bank collapse and in-branch staff didn't seem to know exactly.

Personally I’d be withdrawing anything in the box asap. I don’t think it will go under but the branches may close if it gets taken over. Who knows what will happen. 

I would but don't have  another safe deposit box to transfer items into. 

Username_gone

wmb194 said:

Username_gone said:

What would happen to the safe deposit boxes customers have with them should they fail? Have one with them but can't find anything online that explains safe deposit boxes should the bank collapse and in-branch staff didn't seem to know exactly.

At some point the administrators of the bank would ask you to come and pick up your property.

If the bank/branch is taken over by another business it would either be business as usual or again you'd be asked to collect your property.

Reassuring to hear. Hope it doesn't come to that.

eDicky

Back in the 80's I had an account with Amro Bank (now ABN-Amro) at their Amsterdam HQ in an elegant historic building on Rembrandtsplein, including a safe deposit box inside their strongroom down in the basement. When back in town after an absence of several years I headed to Rembrandtsplein and discovered a department store where my bank had always been.

Presenting myself at their shiny new headquarters I was welcomed as their last remaining deposit box holder (no such facility available any more), whom they had been unable to trace, and presented with my intact inner tray containing a bit of cash and some documents.

I've had a Metro Bank account since their early days but never felt enough need to pay for a deposit box with them. If I did have one, I don't think I'd be too worried about it suddenly becoming insecure.

GeoffTF

FT headline this morning. Metro's bondholders had already offered £600 million. Metro seems to be looking round to see if it can find a more attractive offer.

wmb194

GeoffTF said:

FT headline this morning. Metro's bondholders had already offered £600 million. Metro seems to be looking round to see if it can find a more attractive offer.

Obviously we don’t know the terms but that appears to be debt though, not loss absorbing capital. It appears to need both.

GeoffTF

wmb194 said:

GeoffTF said:

FT headline this morning. Metro's bondholders had already offered £600 million. Metro seems to be looking round to see if it can find a more attractive offer.

Obviously we don’t know the terms but that appears to be debt though, not loss absorbing capital. It appears to need both.

It is likely that the bond holders will have to take a loss at some stage, particularly the Tier 2. It is possible that they are offering to write off some debt, rather than take a bigger loss later. It is also possible that the shareholders will be wiped out at some stage, and the bond holders will take over the company. I do not have any of their shares or their bonds, so I have not looked into the details.

GeoffTF

It seems that Shawbrook Bank has recently offered to buy Metro Bank:

https://news.sky.com/story/metro-bank-rejected-secret-shawbrook-takeover-approaches-12978882