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JoeDavola

Bank Bail In's - What Does This Mean?

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More info here:

https://www.gov.uk/government/consultations/bail-in-powers-implementation-including-draft-secondary-legislation/bail-in-powers-implementation

http://www.bankofengland.co.uk/publications/Documents/quarterlybulletin/2015/q302.pdf

http://truepublica.org.uk/united-kingdom/grand-theft-auto-uk-eu-bank-depositor-bail-regime-implemented/

....so; my understanding is that people with money in the bank will have to pay for a bail out (along with the shareholders), before the government will? Is that correct? And what about the EU guarantee of £75K or so? Are you definitely safe up to that point?

Edited by JoeDavola

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More info here:

https://www.gov.uk/government/consultations/bail-in-powers-implementation-including-draft-secondary-legislation/bail-in-powers-implementation

http://www.bankofengland.co.uk/publications/Documents/quarterlybulletin/2015/q302.pdf

http://truepublica.org.uk/united-kingdom/grand-theft-auto-uk-eu-bank-depositor-bail-regime-implemented/

....so; my understanding is that people with money in the bank will have to pay for a bail out (along with the shareholders), before the government will? Is that correct? And what about the EU guarantee of £75K or so? Are you definitely safe up to that point?

One of many threads here

http://www.housepricecrash.co.uk/forum/index.php?/topic/198816-bank-bail-ins-question/page-1

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We've already paid, that's the loing and the short of it....now they want the rest.

It's f**king criminal and they are f**king theives.

The correct chain of events should be:

Bank goes bankrupt.

Bank calls in mortgages and if dont pay, sells off assets to highest bidder.

Depositors get % back.

bankers out on their ear to live a desperate and poor existence.

Instead....they are stealing more and more.

This will not end well.

Edited by TheCountOfNowhere

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Safe to taxpayer guarantee

Thanks. Yeah figured it was probably discussed here before; apologies for not finding the original thread!

I'm currently trying to split my £140K savings over 2 banks but don't pass the credit check because I have the wrong address in the fecking electoral register. It's taking longer than I'd have liked for the electoral register folk to get it updated so I'm pretty much stuck until then.

I'm assuming I can't transfer 80K to my parents/brothers account for protection? That would probably end up taxed wouldn't it.

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I'm currently trying to split my £140K savings over 2 banks but don't pass the credit check because I have the wrong address in the fecking electoral register. It's taking longer than I'd have liked for the electoral register folk to get it updated so I'm pretty much stuck until then.

Oh, the Irony.

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Thanks. Yeah figured it was probably discussed here before; apologies for not finding the original thread!

I'm currently trying to split my £140K savings over 2 banks but don't pass the credit check because I have the wrong address in the fecking electoral register. It's taking longer than I'd have liked for the electoral register folk to get it updated so I'm pretty much stuck until then.

I'm assuming I can't transfer 80K to my parents/brothers account for protection? That would probably end up taxed wouldn't it.

You dont need a credit check for a savings account.

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You dont need a credit check for a savings account.

Santander refused me for that high interest current account because I failed a credit check. I actually had to just get up and leave! Quite embarrasing, and ironic when you have 140K in the bank.

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Santander refused me for that high interest current account because I failed a credit check. I actually had to just get up and leave! Quite embarrasing, and ironic when you have 140K in the bank.

If you just open the savings and not the current account you wont be credit checked.

Try Halifax.

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If you just open the savings and not the current account you wont be credit checked.

Try Halifax.

I currently have £140K in my Halifax account :)

If the electoral register people keep messing me about I'll have to just pick an alternative to Santander since they're being so difficult.

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Santander refused me for that high interest current account because I failed a credit check. I actually had to just get up and leave! Quite embarrasing, and ironic when you have 140K in the bank.

Failing a credit check will teach you not to get in debt.

I was refused a 100GBP overdraft with my bank that ive been with for 5 years despite having similar funds in.

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Bail in simply means the bank owes you less...without it going insolvent...Its like you magically decide to write of the banks debt to you. What a kind person you are.

Bankers are people too dontchaknow.

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You need ID for money laundering regs, but not a credit check, as obviously you dont need credit with just a savings account.

Obviously, but in this case it was a problem with the electoral register, hence a problem with money laundering regs. not credit worthiness.

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The more people who are wise to keeping accounts under the guaranteed limit the less there will be for bail-ins. If this is the case they will change the rules. The piper needs paying.

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We've already paid, that's the loing and the short of it....now they want the rest.

It's f**king criminal and they are f**king theives.

The correct chain of events should be:

Bank goes bankrupt.

Bank calls in mortgages and if dont pay, sells off assets to highest bidder.

Depositors get % back.

bankers out on their ear to live a desperate and poor existence.

Instead....they are stealing more and more.

This will not end well.

They are indeed thieves but bail-ins are 'fairer' than bail-outs.

In the case of a bank, you CHOSE to give it 'your money' in exchange for credit with the bank (actually, your money was bank credit somewhere in the system in the first place but never mind) .. therefore if the bank goes belly up it's reasonable that you should take a loss if you have credit with it, in order to keep it afloat and prevent you from losing ALL your credit. A taxpayer bailout forces everyone to rescue the bank, whether or not they had money in it.

They'll probably keep the first 70k or whatever the FSCS guaranteed amount is, safe from confiscation .. but that's not certain.

Moral of the story - be careful with whom you bank and think about alternative stores of wealth. Personally I'm moving a large chunk of my bank savings to NS&I Premium Bonds. The 'promise to pay' is held directly with the government so safer than promises of the bank to pay you the government promises. Also unlikely to need a bail-in as the govt will almost certainly print money via the BoE to redeem its debts (it already has done so to the tune of £375 billion anyway).

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Unless they change the rules from one day to the next, which is what happened in Cyprus.

They dont have a sovereign currency.

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The more people who are wise to keeping accounts under the guaranteed limit the less there will be for bail-ins. If this is the case they will change the rules. The piper needs paying.

Corollary is the less would be required. i.e. liabilities will be lower

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I don't believe any bail-ins would start until they have (a) imposed capital controls (B) successfully got rid of cash. Otherwise people would just side-step their haircuts. Unless it was complete surprise like Cyprus.

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Thanks. Yeah figured it was probably discussed here before; apologies for not finding the original thread!

I'm currently trying to split my £140K savings over 2 banks but don't pass the credit check because I have the wrong address in the fecking electoral register. It's taking longer than I'd have liked for the electoral register folk to get it updated so I'm pretty much stuck until then.

I'm assuming I can't transfer 80K to my parents/brothers account for protection? That would probably end up taxed wouldn't it.

*This is not advice* caveat but you could possibly consider a short duration "risk free" asset such as government gilts until it is resolved.

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