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Optobear

No Wonder I'm Getting No Interest

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http://news.bbc.co.uk/1/hi/business/8179096.stm

The cost of protecting UK savers during the credit crisis has been revealed by the body set up to compensate victims of banking collapses.

In its latest annual report, the Financial Services Compensation Scheme said it paid out £21bn in the six months after the onset of the crisis.

That compares with just £1bn in the seven years before the crisis.

The scheme reimburses up to £50,000 per saver if a bank goes under, paid for by the UK financial services industry.

The report highlights five banks that were responsible for the majority of payouts: Bradford & Bingley; Landsbanki Islands' UK savings arm Icesave; Heritable Bank; Kaupthing Singer & Freidlander and London Scottish Bank.

The FSCS also saw a threefold rise in enquiries over the full year - up from 73,000 to 234,000.

The FSCS charges a compulsory levy on the UK's financial services industry to cover compensation for savers.

Ths £50,000 limit is per saver, per institution, not per bank.

So for example, if a saver had £50,000 with HSBC and £50,000 with First Direct, then only £50,000 of savings are protected as HSBC and First Direct are different brands of the same institution.

The key sentence is about the compulsory levy. So all the solvent banks have to pay up towards to the £21bn, that will make a big hole in their profits, or to get round that, a big hole in the interest they pay out. That must be why rates are so lamentable at the moment!

Optobear

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http://news.bbc.co.uk/1/hi/business/8179096.stm

The key sentence is about the compulsory levy. So all the solvent banks have to pay up towards to the £21bn, that will make a big hole in their profits, or to get round that, a big hole in the interest they pay out. That must be why rates are so lamentable at the moment!

Optobear

a sensible bank would have had money in its piggy bank.

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And the caption under the picture of a Bradford & Bingley shop front reads:

"Bradford & Bingley was one of the biggest victims of the financial crisis."

Victim?

:rolleyes:

I thought they were part of the cause of it ?

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So the BBC headline says:-

"UK savers get £21bn compensation"

Now, unless I'm mistaken it wasn't compensation at all. It was £21bn of their own money they were paid back when the thieving insolvent banksters were bailed out by the taxpayer via the conduit that is the FSCS (who didn't have the money).

It may be that the remaining solvent banksters, and thus their customers, i.e. savers will over time be forced to re-imburse the taxpayer via the treasury, via the BoE, via the conduit that is the FSCS, but to claim that savers were compensated is a blatant lie.

They were simply given back the money they lent to the fraudulent banksters.

The BBC are attempting to obfuscate reality and re-write history.

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So the BBC headline says:-

"UK savers get £21bn compensation"

Now, unless I'm mistaken it wasn't compensation at all. It was £21bn of their own money they were paid back when the thieving insolvent banksters were bailed out by the taxpayer via the conduit that is the FSCS (who didn't have the money).

It may be that the remaining solvent banksters, and thus their customers, i.e. savers will over time be forced to re-imburse the taxpayer via the treasury, via the BoE, via the conduit that is the FSCS, but to claim that savers were compensated is a blatant lie.

They were simply given back the money they lent to the fraudulent banksters.

The BBC are attempting to obfuscate reality and re-write history.

What it really shows, of course, is that those people queuing outside Northern Rock were right to be concerned. As were those of us on here who bought gold, tins of beans, etc. Because while the government were saying "everything is fine", the truth, now revealed is that there was a £21bn sized hole in the UK banking system!

Those banks that had to be rescued had to receive £21bn from the FSCS, and that £21bn didn't exist, so it had to be pumped in by the government. The real question is whether the FSCS will really seek to recover it, or whether the government (read taxpayers) will pay up.

Me, I suspect I'll pay for it twice over, once via lousy saving rates, and then again through tax.

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So the BBC headline says:-

"UK savers get £21bn compensation"

Now, unless I'm mistaken it wasn't compensation at all. It was £21bn of their own money they were paid back when the thieving insolvent banksters were bailed out by the taxpayer via the conduit that is the FSCS (who didn't have the money).

It may be that the remaining solvent banksters, and thus their customers, i.e. savers will over time be forced to re-imburse the taxpayer via the treasury, via the BoE, via the conduit that is the FSCS, but to claim that savers were compensated is a blatant lie.

They were simply given back the money they lent to the fraudulent banksters.

The BBC are attempting to obfuscate reality and re-write history.

You pays your licence fee and you takes your choice. You can have any channel you like as long as it's BBC. :blink:

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I don't get it... no banks actually went bust... they were nationlised first.

So why have the FSA and profitable banks had to pay out?

What do you mean you don't get it? They were insolvent, collectively short of £21bn.

They had to pour in £21bn to make up the immediate shortfall of £21bn...if they hadn't it would have led to other banks failing too... hence the purchases of beans and tin-foil.

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