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What Are The Chances Of Sainsbury Bank Going Bust ?

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50:50 JV between Lloyds and Sainsbury.

But are they a separate company or would they fall if Lloyds got caught in the Ireland fallout....

Thoughts ?

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From their webpage:

who regulates us?

Sainsbury's Bank plc authorised and regulated by the Financial Services Authority (FSA). FSA register number 184514. You can check this on the FSA's website or by contacting the FSA on 0845 606 1234.

Sainsbury's Bank plc is a joint venture with 50% of the share capital owned by J Sainsbury plc and 50% owned by the Bank of Scotland plc, a subsidiary of Lloyds Banking Group plc. Sainsbury's Bank plc, St Andrew's Life Assurance plc and St Andrew's Insurance plc are connected companies as the ultimate parent company of St Andrew's Life Assurance plc and St Andrew's Insurance plc also has shares in Sainsbury's Bank plc.

Sainsburys Bank is a registered trademark of Sainsburys Bank plc. Fresh Banking is a trademark of Sainsburys Bank plc.

Linky

Doesn't add much to the mix. I expect being 50% in bed with Lloyds (majority share holder?) is enough to keep the FSA happy.

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From their webpage:

Linky

Doesn't add much to the mix. I expect being 50% in bed with Lloyds (majority share holder?) is enough to keep the FSA happy.

Problem is that the liabilities etc are not clearly defined. You could set up a JV and have wholly separate ring-fenced accounts (the only connection with the parents being the 50% stake in the JV) or a JV where the the deposits were fully held in Lloyds and Sainsbury did the marketing etc. But which is it ?

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Problem is that the liabilities etc are not clearly defined. You could set up a JV and have wholly separate ring-fenced accounts (the only connection with the parents being the 50% stake in the JV) or a JV where the the deposits were fully held in Lloyds and Sainsbury did the marketing etc. But which is it ?

On the FSA website Sainsburys & Lloyds have different FRNs and are not together in the 4th column

"If a person holds accounts with two or more firms covered by a single authorisation – for example two or more firms in the fourth column covered by the same Firm Reference Number (FRN) – then the FSCS will only pay up to the maximum limit of £50,000 in total, regardless of how many different institutions a person holds accounts with and/or the number of accounts that they hold."

http://www.fsa.gov.uk/pages/consumerinformation/uk_groups/index.shtml

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On the FSA website Sainsburys & Lloyds have different FRNs and are not together in the 4th column

"If a person holds accounts with two or more firms covered by a single authorisation – for example two or more firms in the fourth column covered by the same Firm Reference Number (FRN) – then the FSCS will only pay up to the maximum limit of £50,000 in total, regardless of how many different institutions a person holds accounts with and/or the number of accounts that they hold."

http://www.fsa.gov.uk/pages/consumerinformation/uk_groups/index.shtml

Sure but if I was confident that the fscs could pay up then there would be no issue but I am not any wiser as to the exposure of JS bank to the Irish debacle.

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Sure but if I was confident that the fscs could pay up then there would be no issue but I am not any wiser as to the exposure of JS bank to the Irish debacle.

Email and ask them.

Reminds me of when Asda shared the Bradford & Bingley FSCS licence. I emailed Asda and warned them that Bradford & Bingley were going to go down the shitter and got this reply;

"Asda does not have any plans at this stage to have their own FSA licence as they are happy with that detained with Bradford & Bingley. I can however confirm that we are a well funded institution and have no cash flow problems."

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Email and ask them.

Reminds me of when Asda shared the Bradford & Bingley FSCS licence. I emailed Asda and warned them that Bradford & Bingley were going to go down the shitter and got this reply;

"Asda does not have any plans at this stage to have their own FSA licence as they are happy with that detained with Bradford & Bingley. I can however confirm that we are a well funded institution and have no cash flow problems."

Thanks agree that it could be interesting but for comedy value only. I suppose I would only trust the answer if it were credible/verifiable...

BTW no bank would reply

"I can confirm that we are technically bankrupt and desperate for your savings so that we have a chance of limping on."

They are all in the confidence game.

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After what's happened so far no bank will ever go bust.

Strictly speaking you get the balance back from the bank so having savings and a mortgage/credit cards your savings go to paying off the debt and the liquidator

tries to get that back as well offering incentives like a reduction. This has happened with some mortgages where risky borrowers had some of the total written off

in return for remortgaging with someone else and going off the books.

Basically never save with someone you borrow from.

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  • 140 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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      • Even
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      • up 5%



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