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Bank Bail-Ins Question

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Can someone explain how bank bail-ins would work in the UK and whether they would take money from bank accounts or also from stocks/shares, NS&I certificates etc?

Also, if you have cash in a bank account what is the level at which in theory the bail-ins could extract your money from a bank account? Is it savings over £100k or savings over £85k?

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Well, have a look at Cyprus. They basically made it up as they went along. I'm running my bank accounts down in the UK to a minimum, enough to pay for trips over but no more.

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It's 85k as that is similar to the 100,000 euros in Europe. I would imagine its bank accounts only due to the ease, imagine having to sell a percentage of everyone's shares.

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they will be whatever they want it to be.

Bail ins are simply a default on what a bank owes you. Its not about money, but about default by the bank.

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The idea is that they recap the banks using the funds (which are bank assets once you've deposited them) and you get shares back.

It will depend on the level of mess - it's 85K at moment - but I suspect that would change.

Another aspect to this is mortgage margin calls - which started to get talked about in 2009. IIRC there are clauses in mortgages that if the value of the property goes below the deposit you paid they can ask you to pay more deposit so the house is not in negative equity - I don't have a mortgage so can't check - but there was much discussion on it at the time.

Either of these can have massive unintended consequences.

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Bail-ins...Bail-outs.....so why bother working for money when they can steal it from you as and when they fancy, so then confidence in cash/currency/money declines....the only way then of storing money is using it as debt (if you can find someone to take it from you), then walking away to let someone else pay....dum di da. ;)

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There's no knowing what they'll do if it comes to the crunch, but I shall be more comfortable with a maximum of £85K in any one bank. A couple of accounts have gone a bit over and I'll correct that in July when the new ISA allowance comes into force.

Edited by Bruce Banner

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It's been happening for years via interest rates lower than inflation.

Sorry to be the bearer of bad news.

Well, there have been various ways to protect against inflation if you've been pro-active about it and I've done ok since they floored rates.

Bail-ins however are a completely different ball-game. Blatant, outright theft and I won't stand for it.

Edited by Reck B

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Can someone explain how bank bail-ins would work in the UK and whether they would take money from bank accounts or also from stocks/shares, NS&I certificates etc?

Also, if you have cash in a bank account what is the level at which in theory the bail-ins could extract your money from a bank account? Is it savings over £100k or savings over £85k?

Here's how they will work.

Banks collapse ( for the 2nd time as predicted by me )....government claims dodgy money has been laundered through UK banks and so decides to "bail in" the failed banks.

People protest and try and lynch all the MPs and bankers. MPs and bankers put troops on the streets "for our own good".

Bankers laugh up their sleeves at the working people of the UK.

What happens after that is anyone's guess.

It wont of course come to that. The UK bail in has already happened, they've taken 10-20% of people savings through inflation, but with the strong deflationary forcing taking hold that might look like a bargain compared to 100% losses by some who bought into BTL.

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There's no knowing what they'll do if it comes to the crunch, but I shall be more comfortable with a maximum of £85K in any one bank. A couple of accounts have gone a bit over and I'll correct that in July when the new ISA allowance comes into force.

What if they go down like a row of dominoes because they all have the same problem?

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What if they go down like a row of dominoes because they all have the same problem?

Everyone piles back in to property, art and gold.

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There's no knowing what they'll do if it comes to the crunch, but I shall be more comfortable with a maximum of £85K in any one bank. A couple of accounts have gone a bit over and I'll correct that in July when the new ISA allowance comes into force.

I wouldn't be surprised if they made it £85,000 total instead of per institution. With over 20 different institutions it could be argued that it was reasonable.

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I wouldn't be surprised if they made it £85,000 total instead of per institution. With over 20 different institutions it could be argued that it was reasonable.

As the majority of people have a lot less than 85,000, I could see a good disaster being used to push the meme that someone with almost 100,000 pounds CASH in the bank is rich, and can give up 20% to save the country. I don't trust the 85k limit as far as I can throw it.

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I say they'll take whatever they need to keep the banks afloat. They said there won't be another bailout at the expense of the taxpayer, but they fail to appreciate it's taxpayers savings that will be used for the bailins. You will however be compensated in something that isn't worth the value they place on it...

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As the majority of people have a lot less than 85,000, I could see a good disaster being used to push the meme that someone with almost 100,000 pounds CASH in the bank is rich, and can give up 20% to save the country. I don't trust the 85k limit as far as I can throw it.

This was how they tried to put it across in Cyprus wasn't it? 120,000 Euros i seem to recall.

Gold went down a week later too.

Crazy times.

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I say they'll take whatever they need to keep the banks afloat. They said there won't be another bailout at the expense of the taxpayer, but they fail to appreciate it's taxpayers savings that will be used for the bailins. You will however be compensated in something that isn't worth the value they place on it...

A bit like gold contracts being settled in cash at the manipulated paper price perhaps?

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As the majority of people have a lot less than 85,000, I could see a good disaster being used to push the meme that someone with almost 100,000 pounds CASH in the bank is rich, and can give up 20% to save the country. I don't trust the 85k limit as far as I can throw it.

What about those with a £500K house, sell it to pay the 20%?

Anyway, nothing is certain in this world but I'm not going to be panicked into buying a house to avoid a possible bail in :lol:.

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It's worse.. you'll receive shares in a failing bank that will ultimately be nationalised.

A bit like gold contracts being settled in cash at the manipulated paper price perhaps?

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What about those with a £500K house, sell it to pay the 20%?

Anyway, nothing is certain in this world but I'm not going to be panicked into buying a house to avoid a possible bail in :lol:.

The difference is that 20% of deposits can be taken en masse, with minimal risk of prevention and low cost to the government. Taking physical property en masse such as houses would require a shi&teload of men with muscles. Which one do you think is more likely in the age of cameraphones and a non-deferential population that includes a sizeable number of nutters?

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Well, have a look at Cyprus. They basically made it up as they went along. I'm running my bank accounts down in the UK to a minimum, enough to pay for trips over but no more.

.......................and putting the money where? I am not asking for a specific location!

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.......................and putting the money where? I am not asking for a specific location!

Belgium, where he's buying US treasuries. B)

Edited by 1929crash

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