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Are There Any Safe Uk Banks?

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My Mainstream Bank insider has revealed a few details about safe banks in the UK. In fact he has had meetings with board members of several UK banks recently. I ASKED HIM WHAT, IF ANY, BANKS WERE SAFE TO KEEP MONEY IN AT PRESENT. He said the safest bank is HSBC, which has no substantial problems staying solvent even if there is a serious meltdown in Europe. The next best would be Barclays, but the caveat is that it does have some exposures but probably not too many to handle even in a huge fallout situation. Frankly, apart from a couple of much smaller ones which may still get caught in other ways, no others are safe unless you are relying on the govt guarantee. Even that could be in slow and dubious if there is a real meltdown he said, because the govt could not afford it. The govt would be forced to raise the funds in another manner to cover it if a number of banks went belly up all at once. And, you've guessed it, the taxpayer would have to foot the bill in either circumstance, the original deposits being lost.

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There are no safe banks, the system is far too interlinked for any to escape substantial problems.

They are all screwed.

Did he make his decision after talking to board members who shall we say not be entirely truthful if they smell cash?

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My Mainstream Bank insider has revealed a few details about safe banks in the UK. In fact he has had meetings with board members of several UK banks recently. I ASKED HIM WHAT, IF ANY, BANKS WERE SAFE TO KEEP MONEY IN AT PRESENT. He said the safest bank is HSBC, which has no substantial problems staying solvent even if there is a serious meltdown in Europe. The next best would be Barclays, but the caveat is that it does have some exposures but probably not too many to handle even in a huge fallout situation. Frankly, apart from a couple of much smaller ones which may still get caught in other ways, no others are safe unless you are relying on the govt guarantee. Even that could be in slow and dubious if there is a real meltdown he said, because the govt could not afford it. The govt would be forced to raise the funds in another manner to cover it if a number of banks went belly up all at once. And, you've guessed it, the taxpayer would have to foot the bill in either circumstance, the original deposits being lost.

The main part of my house savings are with them, and NS&I.

There was this story about HSBC a few hours ago from AFP. Associated Foreign Press?

'Significant headwinds.'

http://www.google.co...5fa01ff6bd7.1d1

Profits in Asia looked like they came to the rescue when HSBC were reporting big US losses, but I have wondered how they would cope with a general turndown in many of their many markets.

Still I'm so worn out with the beating from renting, QE, SMI, low interest rates and hardly any closer to buying a house, I no longer have as much fear about losing many years of my savings. Provided everyone else gets brought down too in the aftermath, including the property owners. So they better keep my savings safe for I'm not spending my life getting beaten and paying for vested interests and all their mistakes to end up with nothing with no reaction. Whilst debtors keep houses and older debtors plot their homes might even be worth more should savers get hit.

Edited by Venger

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The main part of my house savings are with them, and NS&I.

There was this story about HSBC a few hours ago from AFP. Associated Foreign Press?

'Significant headwinds.'

http://www.google.co...5fa01ff6bd7.1d1

Profits in Asia looked like they came to the rescue when HSBC were reporting big US losses, but I have wondered how they would cope with a general turndown in many of their many markets.

Still I'm so worn out with the beating from renting, QE, SMI, low interest rates and hardly any closer to buying a house, I no longer have as much fear about losing many years of my savings. Provided everyone else gets brought down too in the aftermath, including the property owners. So they better keep my savings safe for I'm not spending my life getting beaten and paying for vested interests and all their mistakes to end up with nothing with no reaction. Whilst debtors keep houses and older debtors plot their homes might even be worth more should savers get hit.

Yes, all that taken into account. Can't give a 2 hour lecture, but the nearest thing to safe bank is the HSBC. Do not confuse this with their possible intention to move their head office to HK. That's got nothing to do with it. Nor has USA probs.

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There are no safe banks, the system is far too interlinked for any to escape substantial problems.

They are all screwed.

Did he make his decision after talking to board members who shall we say not be entirely truthful if they smell cash?

If there are no safe banks then what do the normal folk do with their savings? withdraw and put it under the matress!!

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There are no safe banks, the system is far too interlinked for any to escape substantial problems.

They are all screwed.

Did he make his decision after talking to board members who shall we say not be entirely truthful if they smell cash?

It's a personal contact and nothing to do with conversations of the sort you mention. Informal discussions between people who know each other anyway.

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thanks for the info, but i do feel news like this would only be taken seriously if it were from a verified source, ive started emptying my current account now and will put my cash in the safe at home, i have savings in a 3% ing saver, i really dont feel like putting anymore money in thier as it goes over the garauntee, and as said earlier, this to me is hard to beleieve it would be honoured, "sorry savers the countries broke thiers no money left weve all lost"

i mean what could you honestly say to that? im veiwing a house saturday its 15k below houses on the same street i may just say ****** it and buy it, my house will be to live in :)

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Take a look at the FSCS website. The FSCS is a limited company. Its website says "The FSCS is the compensation fund of last resort for customers of authorised financial services firms. If a firm becomes insolvent or ceases trading we may be able to pay compensation to its customers."

The word "may" is less confidence inspiring than the possible alternative "will pay compensation to eligible customers", and sounds like an escape clause.

Martin Lewis of MSE provoked this response from Yvette Cooper in May 2008: "In the unlikely event a major bank became insolvent the Government would ensure that the FSCS has access to enough immediate funding to pay out depositors in a timely manner, through borrowing from the Government or Bank of England. The FSCS could then levy up to £4 billion per year from the financial services industry to cover the costs of compensation"

I wrote to Ms C's successor Danny Alexander to ask if the current government was bound by this pledge. That was three weeks ago. No reply thus far. I guess he's busy...

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It's a personal contact and nothing to do with conversations of the sort you mention. Informal discussions between people who know each other anyway.

Thanks for clarifying.

Although I still wouldn't trust informal discussions because they are hardly likely to admit the bank is in trouble for fear of it getting out as it could easily cause a run.

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If there are no safe banks then what do the normal folk do with their savings? withdraw and put it under the matress!!

I'm afraid normal people can't do anything apart from try to survive, normal people will pay the full price of policy failure via unemployment, poverty and probably death. That's what we are here for.

Get your money and buy long life food, I think that will serve you better than cash under the mattress.

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thanks for the info, but i do feel news like this would only be taken seriously if it were from a verified source, ive started emptying my current account now and will put my cash in the safe at home, i have savings in a 3% ing saver, i really dont feel like putting anymore money in thier as it goes over the garauntee, and as said earlier, this to me is hard to beleieve it would be honoured, "sorry savers the countries broke thiers no money left weve all lost"

i mean what could you honestly say to that? im veiwing a house saturday its 15k below houses on the same street i may just say ****** it and buy it, my house will be to live in :)

Do be careful Sponge. ING is NOT a UK bank and is therefore not protected by the UK protection scheme. You are covered by the Dutch one but whether that is better or worse I couldn't say. Cash in a safe is the least safe option.

The safest bank is NSandI which is a government organisation. You can get 1.75% with them, if they re-release them the index-linked bonds are paying more than 5% tax-free at the moment!

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Do be careful Sponge. ING is NOT a UK bank and is therefore not protected by the UK protection scheme. You are covered by the Dutch one but whether that is better or worse I couldn't say. Cash in a safe is the least safe option.

The safest bank is NSandI which is a government organisation. You can get 1.75% with them, if they re-release them the index-linked bonds are paying more than 5% tax-free at the moment!

thank you flynn i will look into this, the money in the safe thing is definatly pyscological it truelly makes you feel more secure to touch and see it lol, i have a rather big douge de bordeux keeping an eye on it for me :)

thanks again

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As has been said many times before if the shitstorm to come is so large to take down the entire banking sector (or the vast majority of it) then your first priority will not be the money you have lost in the process.

You will need food,shelter and to protect your families. These will be your first and only concerns at this time......

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I would have thought one of the private banks like Coutts would be very safe.

In this example, although a subsidiary of RBS, the risk of failure for RBS is not really relevant. A subsidiary is not liable for the debts of its parent company, and what would happen in an insolvency, is that the subsidiary would be sold as a going concern to a new parent. At worst, the subsidiary would be liquidated and creditors repaid in full.

One of the things that differs with private banks, and other retail/investment banks, is that private banks avoid trading on their own account. i.e. they don't gamble with the bank's money. Instead, they only "gamble" with client's money, or provide advice to clients. So, cash deposits at the bank, would be invested in highly safe assets such as gilts, very short term money market securities (where even the caststrophic losses resulting from the Lehman defaults resulted in maximal losses to money market investments of 1-2%), or held on deposit at the BoE.

For this reason, many private banks have stopped (or greatly reduced) their provision of long-term loans, such as mortgages (now preferring to offer a chargeable advice service to customers on the best 3rd party product available). They may still offer such loans in exceptional circumstances, where the customer's account manager feels the loan is appropriate, but a suitable 3rd party product is not available.

Additionally, because private banks tend to provide a personal service, with customers getting to know their personal account manager, and the account manager makes the relevant decisions, then the these banks tend to practice proper risk management when it comes to overdrafts and personal loans.

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Yes, all that taken into account. Can't give a

2 hour lecture, but the nearest thing to safe bank is the HSBC. Do not confuse this with their possible intention to move their head office to HK. That's got nothing to do with it. Nor has USA probs.

Standard chartered look pretty safe to me. They have avoided all the pitfalls so far, lots of capital, no exposure to Europe.

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As has been said many times before if the shitstorm to come is so large to take down the entire banking sector (or the vast majority of it) then your first priority will not be the money you have lost in the process.

You will need food,shelter and to protect your families. These will be your first and only concerns at this time......

Yes but how do you acquire food and shelter? With money. You don't need to hoard food if you don't lose your money.

Edited by scottbeard

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Yes but how do you acquire food and shelter? With money. You don't need to hoard food if you don't lose your money.

I think that in the event of a meltdown of the financial system money will be worthless. To acquire food you will have to grow it or steal it.

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I would have thought one of the private banks like Coutts would be very safe.

In this example, although a subsidiary of RBS, the risk of failure for RBS is not really relevant. A subsidiary is not liable for the debts of its parent company, and what would happen in an insolvency, is that the subsidiary would be sold as a going concern to a new parent. At worst, the subsidiary would be liquidated and creditors repaid in full.

One of the things that differs with private banks, and other retail/investment banks, is that private banks avoid trading on their own account. i.e. they don't gamble with the bank's money. Instead, they only "gamble" with client's money, or provide advice to clients. So, cash deposits at the bank, would be invested in highly safe assets such as gilts, very short term money market securities (where even the caststrophic losses resulting from the Lehman defaults resulted in maximal losses to money market investments of 1-2%), or held on deposit at the BoE.

For this reason, many private banks have stopped (or greatly reduced) their provision of long-term loans, such as mortgages (now preferring to offer a chargeable advice service to customers on the best 3rd party product available). They may still offer such loans in exceptional circumstances, where the customer's account manager feels the loan is appropriate, but a suitable 3rd party product is not available.

Additionally, because private banks tend to provide a personal service, with customers getting to know their personal account manager, and the account manager makes the relevant decisions, then the these banks tend to practice proper risk management when it comes to overdrafts and personal loans.

banks pay depositors by lending out the money they receive.

They are ALL vulnerable.

It is the nature of the parasite.

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My Mainstream Bank insider has revealed a few details about safe banks in the UK.

About 18 months ago, I decided the answer was "none" so all my savings are in NS&I index linked, I just keep enough for month-to-month spending in a UK bank.

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About 18 months ago, I decided the answer was "none" so all my savings are in NS&I index linked, I just keep enough for month-to-month spending in a UK bank.

NSandI are not a bank?

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  • 284 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% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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