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TheCountOfNowhere

Thankfully the banks are all sorted now....or are they?

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https://www.thescottishsun.co.uk/news/467951/transport-tycoon-sir-brian-souter-hits-out-over-closure-of-airdrie-savings-bank/

 

" The  Stagecoach founder said he was “sad that a bank founded on old-fashioned family values is having to close its doors” "

 

"Speaking of the collapse of Britain’s last independent saving’s bank "

 

 

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1 minute ago, spyguy said:

Piffle.

Wait for nationwide.

I am.

I tweeted them a week or so ago to tell them I hope they went the same way as the NR.  This was after I tweeked  them to say with saving rates of 0.5% they are asking people to subsidies them 1% of their savings per year...they replied saying this was the market rate.

 

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4 hours ago, TheCountOfNowhere said:

I am.

I tweeted them a week or so ago to tell them I hope they went the same way as the NR.  This was after I tweeked  them to say with saving rates of 0.5% they are asking people to subsidies them 1% of their savings per year...they replied saying this was the market rate.

 

Well, they are right.

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Anyone know what the UK cash deposits are now?  M0 not published anymore, from memory back in 2006 I thought I saw a figure of 160B.   I sense a lot of unhappy people when FSCS is shown to be nothing more than an empty promise to pay (myself included) - that and/or serious inflation making 80's 14%+ look small fry.

I feel they'll go for high inflation and always pay in worthless notes (assuming notes still exist!) - debt seems important to them.  Sleepless nights for some.

I just bought some premium bonds, are these retail products going to be treated like gilts come bail-in weekend?  the latter have seen talked about making the creditors take some of the burden for ages.

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26 minutes ago, giggler000 said:

people when FSCS is shown to be nothing more than an empty promise to pay (myself included)

I've seen this written on here a few times now. I can't find much out there, please could someone explain or link to where I can learn more about how the FSCS is not what it says it is?

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It's good for minor institutions, but if you're with a big high street bank then you have to consider FSCS comes into play when you're waking up in a world where high street banks are collapsing. 

Sky News leading with the collapse of Barclays, BBC News saying how there are fears NatWest will follow and collapse with days. The Times leading with Lloyds on the brink.

In such a scenario, where on earth are you going to put that £85K for starters?

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24 minutes ago, Arpeggio said:

I've seen this written on here a few times now. I can't find much out there, please could someone explain or link to where I can learn more about how the FSCS is not what it says it is?

I am sure that if you search the Internet hard enough you will find the proof that you have been looking for that it is a conspiracy between the Lizard people and the Illuminati. 

Will still be ********. The FSCS is what it says it is. 

Edited by Ah-so

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5 minutes ago, Ah-so said:

I am sure that I'd you search the Internet hard enough you will find the proof that you have been looking for that it is a conspiracy between the Lizard people and the Illuminati. 

Will still be ********. The FSCS is what it says it is. 

Maybe this has what you're looking for?  (not sure)  https://www.fscs.org.uk/industry/funding/

It used to be 4B which is why I asked, how much cash is now on deposit in the UK system.  If you believe Cyprus was a test then I guess you know the answer already - I'm not sure, hoping not

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I'd be more worried about not having a job as the FSCS only covers small businesses up to £85K as well under the following criteria.

  • A sales turnover of less than £6.5m
  • A balance sheet total of not more than £3.26m
  • Having fewer than 50 employees.

If you have anything more than 10 staff or have a lot of invoices/rent due then you will be instantly bankrupt or on the phone to a new bank for a huge loan.

Either way you and your staff lose anyway and the banksters win - again.

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19 minutes ago, Tempus said:

It's good for minor institutions, but if you're with a big high street bank then you have to consider FSCS comes into play when you're waking up in a world where high street banks are collapsing. 

Sky News leading with the collapse of Barclays, BBC News saying how there are fears NatWest will follow and collapse with days. The Times leading with Lloyds on the brink.

In such a scenario, where on earth are you going to put that £85K for starters?

If all of our big banks fail simultaneously, we may have even more to worry about than where you are gong to put your £85k.

While this scenario would never be allowed to happen, in the event of a big failure that cannot be resolved by a bail-in of large investors, the FSCS would borrow the money from HMT which would borrow it from the Bank of England. The Bank would create it in the same way that it created money for QE.

 

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UK Big 4 harbouring a £155bn capital shortfall argues paper published last year.

http://www.independent.co.uk/news/business/news/uks-four-biggest-banks-155bn-short-of-safety-warn-experts-a7174141.html

Quote

UK banks had to be rescued in 2008 and 2009 at massive cost to British taxpayers.

Capital represents the shareholder funds in banks available to absorb losses. When losses are greater than the capital cushion the bank is bust and may need to tap state support if deemed to be systemically important by politicians and regulators. 

In a new paper Viral Acharya of New York University, Diane Pierret of the University of Lausanne and Sascha Steffen of the University of Mannheim calculate that HSBC, Barclays, Lloyds and the Royal Bank of Scotland would need to raise $185bn (£155bn) of new equity between them to retain a 5.5 per cent capital cushion in a crisis, which is the benchmark of safety used in the past by the European Banking Authority.

That sum is not far away from the present market capitalisation of these banks, implying that they are massively overexposed.

 

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9 hours ago, interestrateripoff said:

Any house price correction is likely to cause the UK banking system tax payers a few wee problems.

I'll come back to my analogy where someone pay £1M for a bog standard car.

1,000,000 cars in the country, say.

One man thinks they are a great investment and decides to pay £1M for the 1 car.

Does that man all the other car worth £1M ?

When the man comes to sell the car he will have a major problem.

The man is likely to loose £995,000 as no one else thinks a car is worth £1M.

So the man has a problem, or the people who lent him the money has  a problem.

Tax payer supported QE is being used to lend people money to buy house at unfathomable prices.  

The people of Britain have a problem.

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On 1/23/2017 at 1:41 PM, TheCountOfNowhere said:

I am.

I tweeted them a week or so ago to tell them I hope they went the same way as the NR.  This was after I tweeked  them to say with saving rates of 0.5% they are asking people to subsidies them 1% of their savings per year...they replied saying this was the market rate.

 

It's the market value when the market is being decided, created and designed by the interference and the coordinated actions of the central banks - all acting together to enrich themselves and their pals at everyone else's expense.

In other words it's the market of might is right.

Edited by billybong

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On 23/01/2017 at 1:28 PM, TheCountOfNowhere said:

https://www.thescottishsun.co.uk/news/467951/transport-tycoon-sir-brian-souter-hits-out-over-closure-of-airdrie-savings-bank/

" The  Stagecoach founder said he was “sad that a bank founded on old-fashioned family values is having to close its doors” "

 

They obviously lost those values at some point.

Where was the vault of gold held in the bank's own account? Surely they could have amassed a huge safety buffer of the number one Tier asset (according to the IMF) over their 100+ year history? 

Just 5% of their yearly profits put into gold bullion as a pure insurance/safety asset over the 180 year history would amount to a vast fortune today.

Edited by Errol

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^

Quote

 

The  Stagecoach founder said he was “sad that a bank founded on old-fashioned family values is having to close its doors”

 

When the crunch comes likely they would all claim that.  That's when they're not making threats to set up elsewhere unless they get their own way.

TSB ran a hovis type advert about their operations a couple of years ago going back to when they first started up.

 

.

Quote

secure in the knowledge that their money was safe...

 

Look where the banking industry/financial sector is now - still full of fraudsters and self enrichers. 

Edited by billybong

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6 hours ago, Errol said:

They obviously lost those values at some point.

Where was the vault of gold held in the bank's own account? Surely they could have amassed a huge safety buffer of the number one Tier asset (according to the IMF) over their 100+ year history? 

Just 5% of their yearly profits put into gold bullion as a pure insurance/safety asset over the 180 year history would amount to a vast fortune today.

They haven't gone bust if the story is to be believed. Instead they realise that they can no longer compete and have decided to wind up operations as a solvent enterprise. 

Assets and liabilities get moved to another bank and then the capital paid out to shareholders. 

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