Banks Most Likely To Go Bust

[Orbital]

Maybe it's time to buy some gold, a shotgun and plenty of ammunition.

People can argue whether a house is a good financial investment or not, but it will always provide shelter no matter how much it is valued.

[jimmyjazz]

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.

NEW YORK, Sept 6 (Reuters) - Barclays Bank Plc on Thursday sold $2.05 billion of five-year notes, said a source familiar with the deal.

The notes, which are due on Sept. 12, 2012, were priced through sole lead manager Barclays Capital, and have a yield of 1.30 percentage points more than U.S. Treasuries, the source said.

edit: after a wee bit of research i found out that it means Barclays have just borrowed an extra 2 billion dollars or 1 billion pounds exactly what they used to bail out the SIV.

mmmmmmmmmmmmmm....................................

Edited September 7, 2007 by jimmyjazz

[crashmonitor]

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

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??

A nuisance but get it spread into 35k tranches.I seem to be invested in all four of the high street banks/bs offering plus 6.7%(Derbyshire,West Brom,Northern Rock and Nationwide)

[nigwell]

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

Steve

Tell me about Irish property prices and the lenders that whoosed it all up, why don't you? Safe as houses, naturally.

The safest place is gilts -short dated - and NS&I accounts.

[Guest tbatst2000]

Anyone know of any real concerns with Nationwide??

From what I've heard, they're one of the few that still fund all their mortgages from depositors cash. Also, they managed to get a bond placement out the other week which indicates that they're not viewed as in danger by the financial world at large.

[jimmyjazz]

does no-one else find it interesting that barclays have just borrowed 1 billion pounds to bail out the SIV Hedge Fund ?

Edited September 7, 2007 by jimmyjazz

[Steve Netwriter]

Tell me about Irish property prices and the lenders that whoosed it all up, why don't you? Safe as houses, naturally.

The safest place is gilts -short dated - and NS&I accounts.

Thanks for the suggestions. I'll have a look into those possibilities.

"Safe as houses". Hmmmm, that expression no longer fills me with confidence

According to this:

Irish eyes are smarting as trouble looms, writes Edmund Conway

http://www.telegraph.co.uk/property/main.j...08/pword108.xml

the Irish boom was made worse by the Euro !

[jimmyjazz]

Thanks for the suggestions. I'll have a look into those possibilities.

"Safe as houses". Hmmmm, that expression no longer fills me with confidence

According to this:

Irish eyes are smarting as trouble looms, writes Edmund Conway

http://www.telegraph.co.uk/property/main.j...08/pword108.xml

the Irish boom was made worse by the Euro !

cant believe he got paid for righting that drivel.

I have read far better analyses by many posters on here.

[gravity always wins]

Tell me about Irish property prices and the lenders that whoosed it all up, why don't you? Safe as houses, naturally.

The safest place is gilts -short dated - and NS&I accounts.

Aparently all NS&I and Post Office accounts are underwritten by the Bank of Ireland

Out of the frying pan in to the fire

[libélula]

Anyone got any thoughts on Chelsea Building Soc? I guess they've done some sub prime lending, but are they deeply into it or less so like Nationwide is claimed to be further up this thread? Thanks for any help with this.

[grey shark]

Aparently all NS&I and Post Office accounts are underwritten by the Bank of Ireland

Out of the frying pan in to the fire

All NSI products are underwritten by the treasury { government } these are the safest cash investments you can get , but you are correct that some savings accounts at the post office are underwritten by Anglo irish bank

[Pecco]

I would say that NSI are the safest option and if I were to move my savings that's where they would go. They're currently with Nationwide, and I feel no urgency to move them - Nationwide have a conservative reputation and a strong risk department from what I know.

I say that as someone who's worked in credit risk (scoring) for over 10yrs. I'm no economist and not qualified to give any advice and wouldn't want anyone to act on my advice alone, but to take it in a wider context with all the other information they can get thier hands on. The specialised industry I'm in is pretty small, however, we all know or know of each other, and we get an insight into the risk appetites and cultures of quite a few finance companies and banks, so I consider myself in a fortunate position in making decisions over my finances - although I'm the most risk averse person I know and always looking for the safest options rather than the most lucrative. It's my Scots blood perhaps

I don't anticipate things getting quite so bad I would move savings to NSI, but NW is the choice I've made based on what I know. Same knowledge helped me ignore my IFA trying to persuade me to split and use all my savings to buy two properties in 05 - I could so easily be among a growing number of struggling homeowners if I'd taken his advice, trying to sell one and bracing for payment shock on the other with no savings and high LTV exposure - and he's supposed to be the expert.

The original post is more insightful than I think the poster realises, there are lenders on there I would rather keep my money stuffed in a mattress than deposit with. That's exactly the kind of thing to look for, and things like how much they issue public reassurances and VI 'analysis'.

[DoctorJ]

Where are lloydsTSB on this list? are they on the list?

I haven't heard much about them regarding the recent turmoil.

Pretty much all my money is with them (current, savings, ISA) except for some premium bonds and of course, a little gold

[Ash4781]

http://business.timesonline.co.uk/tol/busi...icle2410039.ece

Even so, Credit Suisse estimates that HBOS and Northern Rock – the two British banks most vulnerable to the mismatch – have a net negative exposure to the Libor gap of £12.7 billion and £12.6 billion respectively. For every 0.1 percentage point difference between Libor and base rate, HBOS’s profits fall by about 0.2 per cent and Northern Rock’s by nearly 2 per cent. Should, for example, the current 1.14 percentage point gap persist for a year, profit forecasts for the pair would have to fall some 2.3 per cent and 22 per cent respectively.

Northern Rock

[jimmyjazz]

I say that as someone who's worked in credit risk (scoring) for over 10yrs. I'm no economist and not qualified to give any advice and wouldn't want anyone to act on my advice alone, but to take it in a wider context with all the other information they can get thier hands on. The specialised industry I'm in is pretty small, however, we all know or know of each other,

what were the credit risk guys doing at those German banks that bought all the subprime crap ?

I mean how could they be so economically maladroit ?

[grey shark]

Where are lloydsTSB on this list? are they on the list?

I haven't heard much about them regarding the recent turmoil.

Pretty much all my money is with them (current, savings, ISA) except for some premium bonds and of course, a little gold

Lloyds savings rates are average at best , there ISA only pays 5.75% they are taking the P out of you , educate yourself on the value of compounded interest research all the best rates bla bla .......Lloyds is one of the best dividend paying companies on the FTSE because shareholder value is what matters with Lloyds NOT customer value .

[DoctorJ]

Lloyds savings rates are average at best , there ISA only pays 5.75% they are taking the P out of you , educate yourself on the value of compounded interest research all the best rates bla bla .......Lloyds is one of the best dividend paying companies on the FTSE because shareholder value is what matters with Lloyds NOT customer value .

Thanks Sharky. The ISA I have with them is a couple of years old now and at that time the rate wasn't bad compared to others - and I bank with them so did it for ease. I agree that there are better ones about. I haven't put money into this for over a year (wedding etc). If I did have the money again to save I would go for NSandI, probably, based on my limited knowledge.

and I do know about the benefits of compound interest - but thanks for the tip

[ScaredEitherWay]

I have a vision of Bob Diamond hiding under his desk and refusing to come out until it's all over.

With a bucket on his head.

He'll need one behind him too ....

Edited September 8, 2007 by ScaredEitherWay

[stew]

Hmmm, Barclaycard seems to have dropped off the face of the planet.

Try giving their customer service a call (usually an automated system where you can check you balance etc) - 0870 154 0 154. All I get is a recorded message about "Great offers on balance transfers", then some music for 10 secs, then cut off!

[jimmyjazz]

Hmmm, Barclaycard seems to have dropped off the face of the planet.

Try giving their customer service a call (usually an automated system where you can check you balance etc) - 0870 154 0 154. All I get is a recorded message about "Great offers on balance transfers", then some music for 10 secs, then cut off!

try again

i just rang and got put through after a few minutes of muzak

your post is the kind of stuff that gets conspiracy theorists a bad name :-)

[Guest Shedfish]

does no-one else find it interesting that barclays have just borrowed 1 billion pounds to bail out the SIV Hedge Fund ?

i'm amazed that anyone would want to go near them, after the news over the last few weeks. it's either an unbelievably unfortunate series of PR gaffes, or they really are in trouble IMO

[Captain Coma]

what were the credit risk guys doing at those German banks that bought all the subprime crap ?

I mean how could they be so economically maladroit ?

"Saxony's local bank decides that it would be more fun to play with the big boys, and is removed on a stretcher."

- Christopher Fildes, London Evening Standard, 7 Sept

[Pecco]

what were the credit risk guys doing at those German banks that bought all the subprime crap ?

I mean how could they be so economically maladroit ?

I'm not sure how good Credit Risk assessment is in Germany. I know the UK is well ahead of some of our EU and international neighbours (including the US imo), we have extensive credit bureau information for a start, many countries don't have the advantage of having such information. The US in turn are ahead of some of the people they have been selling to I imagine, and I can't deny the US their sales skills.

Having leading risk expertise is completely redundant though if the company has very aggressive sales targets and/or board members that don't really understand risk and have bonuses dependant only on short term (ie. one year). I'm sure there have been many frustrated risk professionals in the last few years trying to pull on the reins but being largely ignored. Much like a lot of posters here must also feel I expect.