With all the news coming from left of GB, just wondered what people with some knowledge of banking think is likely to happen over here?
Any of the big players in the High St likely to take a tumble?
Sounds pretty serious if it has been 80 years since it has been this bad on Wall Street...
Rather turbulent times we live in at the moment
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Don't be tempted by the high rates on offer at the Icelandic banks (IceSave, Kaupthing etc..), or certain other poorly-run foreign banks - the extent of the UK government guarantee mentioned above is not clear in these cases.
Keep away from anybank not based in UK, whatever they offer.
Stick it all on the number 3 dog at Crayford in the 7.28pm tomorrow night!
The one in the Sheapskin coat and pork pie hat does......
LMFAO!!!
I was waiting for that reply! ;o)
Surely in a free market companies should live and die based upon their decisions?
Big business is all for the free market when it suits them and all for govt intervention when that suits them.
US corporations moan about government interference, tax and planning laws, regulation etc but are happy to take grants, tax breaks and handouts when they need it.
Tis the way of the world.
I think the government gives the Banks special status because, unlike other businesses there's a large number of common or garden punters who'll suffer if they go under. Rather than capitalist plotting it's more done to help the smaller investor.
The only reason anyone's talking about Banks going under is the whole mess around Northern Rock. While as an institution they got themselves relatively close to the line, they would not have needed any help whatsoever had it not been for everyone taking their cash out on the same day. The net effect on the world's biggest players - like BoA or HSBC would have been exactly the same. Stupidity and fear on a mass scale was actually more the problem than poor financial governance or global recession.
We are told there are controls, regulations etc but clearly there isnt. Bankes can "earn" millions and millions but if they f**k up ? so what no penalty. Who loses ? the workers vey low done in companies. They top boys what ever happens to them
This World we live in today at the lower everyday level is so over regulated its a joke --- snopping in waste bins, on cctv 300 times a day, biggest DNA data base in the World------ but at the higher levels its loop warm regulations that the old boys city net work gets around.
Cant do a "wind fall tax" as its a free market economy. Couldnt help UK industry, miners,ship workers, car workers,power workers, call centres, its a Free Market Economy. Now we have to cry when the people that fully supported this ideology are in trouble ? dont think so.
You also have to look out for who owns who - its 35k per group so if Bank A owns Bank B and you've got say 30k in each, you'd only get 35k total. So if there's anyone who's loaded e.g. footballers on here, spread your risk.
http://www.thisismoney.co.uk/saving-and-banking/article.html?in_article_id=440456&in_page_id=7
I knew about the 35k rule but if there is widespread panic and runs on a couple of banks over here, would that be sustainable?
Seems to me that if everybody keeps their nerve then there is less of a problem, or even none at all. Rumours of downturns seem to encourage downturns to become reality. That was what seemed to happen to Northern Rock as everyone just spiralled a small problem into a disaster.
Plus banks from all over the world seemed to have encouraged and propped up irresponsible mortgage lending and personal credit, particularly in the states.
This is just how it seems to me, but I'm no finance city whizz kid.
Then the whole situation is brought to reality by the knee-jerk reaction fear of readers/viewers panicking to pull out their money.
Life really is a self-fulfilling prophecy.
Privatise your profits.
Nationalise your loses.
Top post ever on Charlton Life.