French bank failing

[orbs]

Please people stop arguing, I didnt ask for advice i asked if it was safe, well today i read in the mail if you have up to £85,000 your money will be safe. I must admit it is worrying times.

[Andy]

If your money is in a UK registered bank (you can check this on the FSA website), you are covered up to £85k per person. Please remember this is per individual customer, not per account. So if you have money in several accounts, it will be aggregated to work out the level of cover you have. Equally, if an account is joint, each customer enjoys their own £85k of protection. See http://www.fscs.org.uk/

 

No British bank has been allowed to default on its obligations to date although the FSCS has been called upon several times to bail them out.

 

If we get to the point where a bank is forced to default, and the FSCS/Government are unable to step in, then the chances are it's the end of the road for the UK anyway and the pounds you've lost would be worthless.

[Obelix]

Please people stop arguing, I didnt ask for advice i asked if it was safe, well today i read in the mail if you have up to £85,000 your money will be safe. I must admit it is worrying times.

 

You have to understand that a lot of posters on here have their own axe to grind with party politics, quackery and plain bizzareness. Deciding who is who is left as an excercise to the reader..

 

As for the safety of the deposit that £85,000 is only for a UK institution - if you had money deposited directly with say Credit Agricole, especially if it was in euros then the UK scheme may not be the one that covers it and you would have to rely on the French schemes (which may or may not be more generous than the UK one)

[Grandad.Malky]

BANK shares tumbled yesterday after a credit rating agency downgraded 12 top financial institutions, including Royal Bank of Scotland, Lloyds Banking Group and the UK operations of Spanish bank Santander.

 

 

The downgrade reflected the fact they are less likely to receive Government bailouts in a future crisis and plans to ring-fence high-street banking divisions from their riskier investment bank counterparts. Moody’s cut Lloyds, Santander and the Co-operative by one notch, while RBS and Nationwide were cut by two.

 

http://www.express.co.uk/money/view/276234/Banks-hit-by-credit-rating-downgrades

[andyofborg]

For starters, what's your small nest egg doing in a French bank?

 

maybe he's a french hen

[chem1st]

If your money is in a UK registered bank (you can check this on the FSA website), you are covered up to £85k per person. Please remember this is per individual customer, not per account. So if you have money in several accounts, it will be aggregated to work out the level of cover you have. Equally, if an account is joint, each customer enjoys their own £85k of protection. See http://www.fscs.org.uk/

 

No British bank has been allowed to default on its obligations to date although the FSCS has been called upon several times to bail them out.

 

If we get to the point where a bank is forced to default, and the FSCS/Government are unable to step in, then the chances are it's the end of the road for the UK anyway and the pounds you've lost would be worthless.

 

The only way that money can be guaranteed is if money is printed to cover it.

 

Printing money = inflation.

 

By the time you get it, it won't be worth what it was.

[Andy]

The only way that money can be guaranteed is if money is printed to cover it.

 

Printing money = inflation.

 

By the time you get it, it won't be worth what it was.

 

Or if sufficient funding is held in reserve to cover it, or if the funds can be borrowed backed by a government guarantee (the same concept except that money is never printed so there is no inflation)

 

In the case of the FSCF, they call on the rest of the banking industry to fund the compensation. And all banks are required to hold a certain level of capital so should be able to cover it. Now, it's in the interests of the banking industry as a whole not to see customers lose money due to a default, so this arrangement works. Equally, the building society movement has seen consolidation as larger societies take over smaller ones, to protect the reputation of the industry as a whole.

 

How the arrangements would work if it was one of the 'big 5' banks in default remains to be seen. I seriously hope they never need to be tested in that way.

[chem1st]

Or if sufficient funding is held in reserve to cover it, or if the funds can be borrowed backed by a government guarantee (the same concept except that money is never printed so there is no inflation)

 

In the case of the FSCF, they call on the rest of the banking industry to fund the compensation. And all banks are required to hold a certain level of capital so should be able to cover it. Now, it's in the interests of the banking industry as a whole not to see customers lose money due to a default, so this arrangement works. Equally, the building society movement has seen consolidation as larger societies take over smaller ones, to protect the reputation of the industry as a whole.

 

How the arrangements would work if it was one of the 'big 5' banks in default remains to be seen. I seriously hope they never need to be tested in that way.

 

YBS took over Barnsley Building Society, yet Barnsley had more assets/capital. YBS now offers parasitic Buy To Let products in a failing market, Moody's reckon it wouldn't get bailed out by the taxpayer in the event of failure.

 

The banks haven't enough to cover it, if there is a bank run there will be money printing, it is a matter of who can convert their currency first.

[Vague_Boy]

If your money is in a UK registered bank (you can check this on the FSA website), you are covered up to £85k per person.

 

Assuming that all the banks don't fail at once.

 

BBC Newsnight - On The Verge Of A Perfect Storm: 2 to 3 weeks from a banking crisis

[Grandad.Malky]

My wife used to work for the Bradford and Bingley, she now has nearly a grand’s worth of useless shares and there are many in a worse position ………….. You have been warned.

 

Days before the collapse people were being advised to buy shares ………….. you work it out.