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Realistbear

Sterling Sell-off As Possibility Of Another Bank Failure Arises

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http://www.iii.co.uk/news/?type=afxnews&am...;action=article

LONDON (Thomson Financial) - The pound fell against the euro and the pound as rumours circulated about
possible trouble at a UK bank
in an already very jittery market.
"Euro/sterling has ascended ... amid talk that a UK clearer might be having trouble raising funds -- and that this could even spur an emergency BoE base rate cut," said Robert Howard at Thomson IFR Markets.

Sounds plausible given the level of debt, the shaky nature of millions of mortgages and a faltering economy. Who might it be? My bet is on A&L.

Pound nearing the 1.30 point vs. the Euro:

GBPEUR=X 1 27 Feb 1.3146

If a second bank fails it will be the end of Gordon's tenure in No. 10.

Edited by Realistbear

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Guest The_Oldie
Then erm we could have some kind of mechanism to keep it at 1:1. :unsure:

Joining the Euro would do it.

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http://www.iii.co.uk/news/?type=afxnews&am...;action=article
LONDON (Thomson Financial) - The pound fell against the euro and the pound as rumours circulated about
possible trouble at a UK bank
in an already very jittery market.
"Euro/sterling has ascended ... amid talk that a UK clearer might be having trouble raising funds -- and that this could even spur an emergency BoE base rate cut," said Robert Howard at Thomson IFR Markets.

Sounds plausible given the level of debt, the shaky nature of millions of mortgages and a faltering economy. Who might it be? My bet is on A&L.

Pound nearing the 1.30 point vs. the Euro:

GBPEUR=X 1 27 Feb 1.3146

If a second bank fails it will be the end of Gordon's tenure in No. 10.

But didn't the chief of Alliance & Leicester say the other day that they had secured funding until the end of Q3 2008?

Slightly worried since I have both a current account and savings with them. I know my money is guranteed up to 35k but would the Government ever honour this in reality for a big bank? Do they have the funds to back it up?

:huh:

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http://www.iii.co.uk/news/?type=afxnews&am...;action=article
LONDON (Thomson Financial) - The pound fell against the euro and the pound as rumours circulated about
possible trouble at a UK bank
in an already very jittery market.
"Euro/sterling has ascended ... amid talk that a UK clearer might be having trouble raising funds -- and that this could even spur an emergency BoE base rate cut," said Robert Howard at Thomson IFR Markets.

Sounds plausible given the level of debt, the shaky nature of millions of mortgages and a faltering economy. Who might it be? My bet is on A&L.

Pound nearing the 1.30 point vs. the Euro:

GBPEUR=X 1 27 Feb 1.3146

If a second bank fails it will be the end of Gordon's tenure in No. 10.

Luckily everyone who has bought Dollars on your advice is sitting pretty.

Hang on......

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But didn't the chief of Alliance & Leicester say the other day that they had secured funding until the end of Q3 2008?

Slightly worried since I have both a current account and savings with them. I know my money is guranteed up to 35k but would the Government ever honour this in reality for a big bank? Do they have the funds to back it up?

:huh:

I have a tenner with them and I`m getting it out pronto....................... oh dear their website has crashed.

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Out of interest, if it were a high street bank, with current accounts paying DDs, SOs etc all set up - would these still be honoured in the event of a run? Come to that, would you still be able to nip down to any LINK cash point to save you queueing with all the old dears smelling of wee?

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But didn't the chief of Alliance & Leicester say the other day that they had secured funding until the end of Q3 2008?

Slightly worried since I have both a current account and savings with them. I know my money is guranteed up to 35k but would the Government ever honour this in reality for a big bank? Do they have the funds to back it up?

:huh:

The money is guaranteed only as a levy on the rest of the banking industry. The scheme has never been tested against a big failure. But to give an idea, it plans to levy around £100m over the year 2008/09.

THat means the scheme can refund up to £100m. Please note that is b, not an m.

If you want to check go to the FSCS website and look at their latest plan and budget

http://www.fscs.org.uk/industry/publications/annual_reports/

If A&L or any other bank goes under, then the FSCS scheme is totally and utterly irrelevant. Your £35k can only be covered by the government whistling the money out of thin air. Like they did with guaranteeing Northern Rock. But note that they haven't had to give back to retail NR depositors, so actually it is untested whether the government could actually do it.

So I wouldn't set too much faith in the scheme. But if makes the sheeple feel happy then fine, it is doing its job.

Edited by Optobear

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The money is guaranteed only as a levy on the rest of the banking industry. The scheme has never been tested against a big failure. But to give an idea, it plans to levy around £100m over the year 2008/09.

THat means the scheme can refund up to £100m. Please note that is b, not an m.

If you want to check go to the FSCS website and look at their latest plan and budget

http://www.fscs.org.uk/industry/publications/annual_reports/

If A&L or any other bank goes under, then the FSCS scheme is totally and utterly irrelevant. Your £35k can only be covered by the government whistling the money out of thin air. Like they did with guaranteeing Northern Rock. But note that they haven't had to give back to retail NR depositors, so actually it is untested whether the government could actually do it.

So I wouldn't set too much faith in the scheme. But if makes the sheeple feel happy then fine, it is doing its job.

So in other words, the first whiff of trouble at any bank where you have deposits GET THE MONEY AND STITCH IT INTO YOUR DUVET!

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Luckily everyone who has bought Dollars on your advice is sitting pretty.

Hang on......

Wouldn't touch Euros with a barge poll as the poisons that have been lurking in the mud are all beginning to hatch out there now in the form of gross distortions caused by the ECB an dthe one size fits all disaster.

:rolleyes:

sterling_euro_1_year.tiff

edit: added 52 wk graph of pound against Euro. Note 52 week sterling high against Euro around 27th July

sterling_euro_1_year.tiff

Edited by Ursus Helvetica

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The money is guaranteed only as a levy on the rest of the banking industry. The scheme has never been tested against a big failure. But to give an idea, it plans to levy around £100m over the year 2008/09.

THat means the scheme can refund up to £100m. Please note that is b, not an m..........

If A&L or any other bank goes under, then the FSCS scheme is totally and utterly irrelevant. Your £35k can only be covered by the government whistling the money out of thin air. Like they did with guaranteeing Northern Rock. But note that they haven't had to give back to retail NR depositors, so actually it is untested whether the government could actually do it.

So I wouldn't set too much faith in the scheme. But if makes the sheeple feel happy then fine, it is doing its job.

You're correct with regard to the FSCS guarantee, its not worth the paper its written on, however, there is no chance of this Gov't letting a major lender go to the wall. The wee nose picker will do anything to keep this empty cash cart on the rails - upto and including nationalising the entire banking system.

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Sterling/Euro just gone below its 52 week low. Down 1.06% today. Those Spanish holiday homes are looking mighty expensive to UK Sterling buyers... <_<

almost offsets spanish property crash for brits who already own...

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Guest Bart of Darkness
Dollar at all time low against Euro. Euros anyone?

Might be a good idea for RB too, better than those dollars.

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You're correct with regard to the FSCS guarantee, its not worth the paper its written on, however, there is no chance of this Gov't letting a major lender go to the wall. The wee nose picker will do anything to keep this empty cash cart on the rails - upto and including nationalising the entire banking system.

How many banks could the government nationalise without it destroying pensions, with profit insurance, etc? I agree that they'd have to step in and underwrite, but would the world financial markets accept that? ALso wouldn't Soros, or some other financier find a way to use such reckless intervention to siphon off all the wealth in the UK?

Seems that the UK is in real danger of a full blown financial crisis. Perhaps back to that idea of getting ones hands on a few small value gold coins... just in case...

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Joining the Euro would do it.

If the UK decide to join the Euro, the actual rate will have nothing to do with it.

Why do people have this idea that somehow if the exchange rate between two currencies is temporarily around 1.00, then the people in charge will just say "oh we might as well change currencies then!"?

It would be no more or less work to switch the UK to using Euros if the final conversion rate is 1.50, 1.20, 1.00 or even 0.75.

Would it?

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Luckily everyone who has bought Dollars on your advice is sitting pretty.

Hang on......

My "advice" has always been to get out of sterling. Swissies, Yen and US$. Much depe3nds on your time frame. Short term the pound has done well but it rests upon Gordon's miracle economy. LOnger term the US$ will fare better than the pound and the Euro. I am in for the long term as I do not plan to use my STM fund until the bottom of the UK property market in about 3 years time. If at all. Renting may be the way forward from here on in.

Sterling's "rally" toward 1.99 was short lived, in the short term:

GBPUSD=X 1 28 Feb 1.9787

I think we have hit a RECORD low this morning vs. the Euro:

GBPEUR=X 1 28 Feb 1.3112

If anyone had followed your advice and been bullish on sterling they would be sitting pretty about now. Hang on..... :o

<_<

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  • 292 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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