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Banks Most Likely To Go Bust

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A bit of fun this, please don't take it too seriously...

So, the higher the interest rate paid, the higher the risk involved. That's why you pay more interest on a loan if you've failed to pay off previous loans on time and why companies with a low credit rating have to pay more interest on their corporate (aka junk) bonds. Given this, it's a reasonable assumption that, when you see organisations that have not previously been so generous topping the best buy tables for savings accounts, it must be because they're somewhat desperate for the cash and are, by implication, a more risky proposition than maybe they were a few months ago.

Here's the current best buy tables for instant access and fixed rate accounts:

http://www.moneyfacts.co.uk/savings/bestbu...s-accounts.aspx

http://www.moneyfacts.co.uk/savings/bestbu...s-accounts.aspx

Some of the organisations making the list are not ones that I recall seeing there very often in the past. I wonder why? Well, let's take a closer look and apply a liberal dose of uniformed speculation.....

Heritable Bank

http://www.heritable.co.uk/HBweb/DesktopDefault.aspx

Well, well, well, look at this collection of mortgage products!

http://www.heritable.co.uk/hbweb/DesktopDe....aspx?tabid=164

I wonder who can't sell their sludge onto pension funds anymore? I'm not surprised they're offering such great rates.

West Bromich BS

http://www.westbrom.co.uk/westbrom/mortgages

Guess what, they do sub-prime mortgages too. It never even occured to me that they did this sort of business. To be fair to them, they've been in the best buy tables in the past.

HBOS

http://www.halifax.co.uk/home/home.asp

No sub-prime as far as I can see but wasn't there the little matter of a 24B hole in their SIV?

Birmingham Midshires

Part of HBOS so presumably contributing to the same black hole.

Anglo Irish Bank

http://www.angloirishbank.co.uk/

Don't like the look of some of this:

http://www.angloirishbank.co.uk/wealth/wealth.asp

Sounds like they too may be having trouble packaging this stuff up and selling it on. Got to keep funding those property developers though so up go the rates.

Derbyshire BS

http://www.thederbyshire.co.uk/

A very boring looking institution....I wonder what they're hiding?

Of course, this may all be totally innocent, but remember that BCCI were paying 1% more interest than anyone else at the point they went bust. Maybe it's time to buy some gold, a shotgun and plenty of ammunition.

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Guest DissipatedYouthIsValuable
A bit of fun this, please don't take it too seriously...

So, the higher the interest rate paid, the higher the risk involved. That's why you pay more interest on a loan if you've failed to pay off previous loans on time and why companies with a low credit rating have to pay more interest on their corporate (aka junk) bonds. Given this, it's a reasonable assumption that, when you see organisations that have not previously been so generous topping the best buy tables for savings accounts, it must be because they're somewhat desperate for the cash and are, by implication, a more risky proposition than maybe they were a few months ago.

Here's the current best buy tables for instant access and fixed rate accounts:

http://www.moneyfacts.co.uk/savings/bestbu...s-accounts.aspx

http://www.moneyfacts.co.uk/savings/bestbu...s-accounts.aspx

Some of the organisations making the list are not ones that I recall seeing there very often in the past. I wonder why? Well, let's take a closer look and apply a liberal dose of uniformed speculation.....

Heritable Bank

http://www.heritable.co.uk/HBweb/DesktopDefault.aspx

Well, well, well, look at this collection of mortgage products!

http://www.heritable.co.uk/hbweb/DesktopDe....aspx?tabid=164

I wonder who can't sell their sludge onto pension funds anymore? I'm not surprised they're offering such great rates.

West Bromich BS

http://www.westbrom.co.uk/westbrom/mortgages

Guess what, they do sub-prime mortgages too. It never even occured to me that they did this sort of business. To be fair to them, they've been in the best buy tables in the past.

HBOS

http://www.halifax.co.uk/home/home.asp

No sub-prime as far as I can see but wasn't there the little matter of a 24B hole in their SIV?

Birmingham Midshires

Part of HBOS so presumably contributing to the same black hole.

Anglo Irish Bank

http://www.angloirishbank.co.uk/

Don't like the look of some of this:

http://www.angloirishbank.co.uk/wealth/wealth.asp

Sounds like they too may be having trouble packaging this stuff up and selling it on. Got to keep funding those property developers though so up go the rates.

Derbyshire BS

http://www.thederbyshire.co.uk/

A very boring looking institution....I wonder what they're hiding?

Of course, this may all be totally innocent, but remember that BCCI were paying 1% more interest than anyone else at the point they went bust. Maybe it's time to buy some gold, a shotgun and plenty of ammunition.

Good train of thought.

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Barclays is offering to underwrite the $1 billion rescue of another highly geared fund that got into trouble because of the liquidity squeeze.

A billion here, a billion there. Soon we're talking real numbers.

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why aren't Barclays in there? up to their eyeballs in CDOs and MBSs last I heard

Maybe, in secret, they own a bunch of northern building societies and are using them as a kind of SIV in reverse? More realitstically, I expect it's because they're not actually in much trouble or, failing that, that their corporate sclerosis is such as to make getting new retail products to market a 6 month process.

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why aren't Barclays in there? up to their eyeballs in CDOs and MBSs last I heard

Barclays were the first bank to grab at savings. Their tax beater ISA is 7.03 AER

http://www.personal.barclays.co.uk/BRC1/js...nk&site=pfs

But the had so much interest from the public, they couldn't handle the volume of applictions and had to close the offer

http://www.personal.barclays.co.uk/BRC1/js...amp;value=12246

http://forums.moneysavingexpert.com/showthread.html?t=410526

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Maybe, in secret, they own a bunch of northern building societies and are using them as a kind of SIV in reverse? More realitstically, I expect it's because they're not actually in much trouble or, failing that, that their corporate sclerosis is such as to make getting new retail products to market a 6 month process.

Either that, or they are paralysed with fear ...

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Isn't there a limit to how much a bank can use depositor's money to shore up investments? I'm sure I read somewhere that the Fed had temporarily increased this in the US from 10% to 30%, I'm assuming the UK has some similar regulation, which may be why larger banks aren't in there as they've already hit the max they can use. I'm totally guessing though.

Well noticed, bookmark this one so you can necro it when the proverbial hits the fan and see how many of these get into trouble/get bought out =)

Edited by Pecco

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A bit of fun this, please don't take it too seriously...

Heritable Bank

http://www.heritable.co.uk/HBweb/DesktopDefault.aspx

Well, well, well, look at this collection of mortgage products!

http://www.heritable.co.uk/hbweb/DesktopDe....aspx?tabid=164

I wonder who can't sell their sludge onto pension funds anymore? I'm not surprised they're offering such great rates.

From there website

Our recent transactions

Regearing an existing residential portfolio to provide 100% funding for various residential developments -- London -- £15,000,000

If I'd just re-geared my residential portfolio for 15 mill i would now be sat in Havana puffing on a El Rey del Mundo:lol:

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Heritable Bank

http://www.heritable.co.uk/HBweb/DesktopDefault.aspx

Well, well, well, look at this collection of mortgage products!

http://www.heritable.co.uk/hbweb/DesktopDe....aspx?tabid=164

I wonder who can't sell their sludge onto pension funds anymore? I'm not surprised they're offering such great rates.

Heritable bank ownend by Landsbanki who own Icesave ..........the web of the CDO is everywhere :ph34r:

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Feel sick all my dosh is tied up in Birmingham Midshires another nine months to run. What can I do? Take 1 valium and one bottle of wine?

Is that all? :huh:

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Anglo Irish have been offering good rates for quite a while.

I believe they have a very economic structure, which minimises their costs.

Having said that, I would like to know which are the safer places.

Apart from Gold :):lol:

Steve

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Feel sick all my dosh is tied up in Birmingham Midshires another nine months to run. What can I do? Take 1 valium and one bottle of wine?

You should be fine. Birmingham Midshires is part of HBOS, so if they go down, plenty of others will be going down with you! (i.e. the govt/BoE will have to intervene to help out)

Mind you, for a large amounts of savings, it would seem sensible to spread your savings over a few different banks.

This thread prompted me to look a bit further into Yorkshire Building Society, where I have some savings. I was surprised to find that this horrible organisation is a subsidiary of YBS: Accord Mortgages "specialises in lending to people affected by county court judgements, bankruptcy and repossessions. “There are five different levels of credit adversity and the LTV available will depend on the credit rating of the applicant,” explains Rob Watson of Accord Mortgages. “However, we do accept maintenance payments with a solicitor’s letter as proof.”

Yuck! :blink:

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http://business.timesonline.co.uk/tol/busi...icle2406153.ece

This was an interesting article, along the same lines as the topic starter, in particular:

"These rates are far higher than swap rates, the money markets which determine fixed-rate pricing. The one year swap rate hit 6.59 per cent yesterday. One industry insider said: “Paying those rates will definitely be costing these institutions money.”

“The fact that rates have been increased by such large margin does seem to indicate a sense of urgency to get this money through the door.”

Northern Rock admitted that it was offering a high rate on its one-year bond in an effort to raise extra funds. The bank has been hit hard in recent weeks as it it raises most of its funding from the credit markets.

Ron Stout, of Northern Rock, said: “We are pitching our funds at a good, competitive price and we are continuing to raise money.”

Bumping this thread. It's a very good indication of which ones to watch.

"“Savers should make the most of these high rates if they have less than £35,000 to invest. But those with more than this at their disposal should be circumspect about the financial strength of the companies in which they are investing"

Indeed.

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Great Crash 2 may bring down quite a few banks but it will save a lot of money in the M&A arena and cut out the middle man (lawyers) fees:

http://www.ft.com/cms/s/0/0028ba58-5cad-11...amp;_i_referer=

Europe
must
get ready for a banking crisis
By Nicolas "Nick" Véron
Published: September 6 2007 20:17 | Last updated: September 6 2007 20:17
Last month’s evaporation of liquidity was a vivid manifestation of the suddenness of financial crises, which no longer stop at national borders. It also provided a reminder of the purpose of banking supervision, which is first and foremost about preventing and managing market disruption.

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A billion here, a billion there. Soon we're talking real numbers.

The amazing thing is that a billion pounds to a bank like barclays is not big money.

We have all seen the big figures in profits that they make each year.

The big problem lies in confidence at the moment and the fact that a lot of banks dont know exactly what their exposure is to the subprime. Its hard for them to adjust their balance sheet to account for possible bad debts when they dont exactly how much subprime debt is in their portfolios.

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"“Savers should make the most of these high rates if they have less than £35,000 to invest. But those with more than this at their disposal should be circumspect about the financial strength of the companies in which they are investing"

That's pretty serious stuff from a mainstream newspaper given that they're not talking about tiny little firms no-one's heard of. Maybe I should start taking cgnao seriously :)

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Its not just the bad debts of Us sub prime loans that are the worry- about 300bn dollars I beleive, its what the twats in LONDON have done to LEVERAGE these- one SP loan goes bust, we can all cope, but if one goes bust and its Leveraged 10 times, then doesnt that make the the potential loss in derivatives 3TRN dollars? and no one knows where they are? as Warren Buffet said: these derivatives are financial wepaons of mass destruction

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Its not just the bad debts of Us sub prime loans that are the worry- about 300bn dollars I beleive, its what the twats in LONDON have done to LEVERAGE these- one SP loan goes bust, we can all cope, but if one goes bust and its Leveraged 10 times, then doesnt that make the the potential loss in derivatives 3TRN dollars? and no one knows where they are? as Warren Buffet said: these derivatives are financial wepaons of mass destruction

....who would want to be a risk manager in one of the big banks right now.......it reminds of of that all song "we're off to see the wild west show".......I know which tribe these guys are in "where the .... are we ?"....... :lol::lol::lol::P

Edited by South Lorne

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What about Nationwide who started offering a 6.7% 1 year bond to "celebrate" their tie up with Portman.

I STR'd late last year and all my savings are with them :unsure:

I was figuring that a high street outfit like Nationwide would be the least likely to have any exposure to any of the sub prime mess. And they pay decent rates

But now I'm concerned with having a 5 figure sum in one basket

Anyone know of any real concerns with Nationwide?? :unsure:

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