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Sledgehead

Banks Deposits Vs Lending

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Which banks are 2nd and 3rd from the left? I don't recognise those logos.

Me neither - is the one supposed to be Halifax - don't know about the other.

Edit I think it's bowler hats, aka B&B !

Edited by stew

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I don't know how Lloyds,the number five net debtor was going to manage to takeover the number one net debtor.And the fact HBOS is in bigger s**t than Alliance and Leicester is a surprise,though I suppose HBOS is more able to support wholesale funding through its sheer size.

Edited by crashmonitor

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Bearing in mind HSBC's low risk implied by this chart, what do people think of their online saver account? It is 6.25% AER with interest paid monthly, apart from any month in which you make a withdrawal. I don't really see that as a problem, since you're not actually fixed into the account.

Maybe I should start a savings and investments thread on it.

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Bearing in mind HSBC's low risk implied by this chart, what do people think of their online saver account? It is 6.25% AER with interest paid monthly, apart from any month in which you make a withdrawal. I don't really see that as a problem, since you're not actually fixed into the account.

Maybe I should start a savings and investments thread on it.

Barclays looks good. I have £3k in their websaver account.

What about Nationwide? Most of of my cash 20K is in their ISA bonds.

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Barclays looks good. I have £3k in their websaver account.

What about Nationwide? Most of of my cash 20K is in their ISA bonds.

Yep they could have included the Building Societies as well,for the full view.

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I am being stupid here cos I thought fractional reserve banking meant that debts could be 30 times higher than deposits (or more). They all look in good shape by comparison - even NR. Or was that discussion all bo*locks.

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Yep they could have included the Building Societies as well,for the full view.

I'm a little more worried about the BSs than most. Thr fact that :

a ) they are systemically less relevant;

b ) have depositors who are equity stakeholders (and therefore deemed beneficiaries of good times and thus victims of bad times),

suggests to me less moral imperative to bail them out. I'm not even sure the BoE guarantee would apply to them.

Edited by Sledgehead

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It's called leverage.

In other words, capitalism working with its normal destructive creativity. It would be interesting to see a similiar graph showing the deposits and lending of the investment banks. What are they leveraging into? Is it these derivatives? I'm simply using the reference of the newsnight piece last night where they showed 485 Trillion USD (the total worth of the derivatives market) zooming into the screen, death star like. More menacingly the font colour was pink!

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I am being stupid here cos I thought fractional reserve banking meant that debts could be 30 times higher than deposits (or more). They all look in good shape by comparison - even NR. Or was that discussion all bo*locks.

What he said.

I don't get it either.

Is it that most of the cash in deposits is money that was loaned as mortgages?

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