12 banks in Uk downgraded- don't get caught with your pants down again
Folks I have spend many weeks ,months ,years studying what went wrong in the lead up to the collapse of Kaupthing. The bank sickness time line to pre- disaster was very compressed. 12 banks in the UK have been diagnosed with same illness. Don't wait 2,3,4 years to see what happens. Get your money protected.
(7 votes)
Where to stash the cash?
I bought a flat which I rent out. I am also buying a new car. Buy anything you will need now. Cars and flats are at knock down prices
Cash stash
I stash some of my money as gold and silver as a way of getting it out of the banking system. I have a Goldmoney account. You could also have a look at bullionvault.com
Don't forget to do your due diligence.
Regards, TonyC
Bank
Thanks for the information but up to now I only keep winning the 25 pound prize and my wife keeps spending that :-) How much Gold will I get with my next win of 25 pounds if I beat my wife at cashing the cheque :-)
Where to Bank
Since we who live outside the UK cannot open bank accounts in the UK, where should we move the money to? Tied hand and foot, we can only shut out eyes and hope for the best.
Where to Bank
Premium Bonds with NS&I. Can only put in 30K per person. Around 1.5% return.
No tax and some great big prizes if you are lucky and we deserve some.
Preium bonds
Just a thought - where do you put the money if you should be lucky and win the big prize? :-)
the big prize
buy a big mattress,empty it and stuff it with the cash.at least you can control it!!!! you can also go to sleep with the biggest smile on your face since you had a bit of, 'hows your father!'
Bank
I like your answer, but if my wife found it, it would go faster than banking with KSF :-)
Downgrading of UK banks
It would be very useful to mention what are those 12 banks,so none of us do bank with them,and in these very uncertain times,how do you protect your precious savings,I cannot think of any foolproof security measures.
So any suggestions anyone?
To john charles Marlier- the 12 banks/Building Societies
Hi There,
Attached is a piece listing the 12 bodies that have been downgraded in UK.
Reassessment
In a statement, Moody's said: "Moody's Investors Service has today downgraded the senior debt and deposit ratings of 12 UK financial institutions and confirmed the ratings of one institution.
Continue reading the main story “
Start Quote
In a sense, the downgrades should be viewed as a good thing, if they reflect a genuine transfer of risk from taxpayers to the banks' creditors”
End Quote
Robert Peston
Business editor, BBC News
Read Robert's blog
UK bank share prices
"The downgrades have been caused by Moody's reassessment of the support environment in the UK which has resulted in the removal of systemic support for seven smaller institutions and the reduction of systemic support... for five larger, more systemically important financial institutions."
The downgrades include a two-notch cut for government-controlled RBS, to A2 from Aa3, and a cut of one-notch, to A1 from Aa3, for Lloyds TSB, a division of part-nationalised Lloyds Banking Group.
Spanish bank Santander had its UK business downgraded by one notch, to A1 from Aa3, while Nationwide Building Society suffered a two-notch cut, to A2 from Aa3.
Other institutions downgraded were Co-operative Bank, and the building societies Newcastle, Norwich & Peterborough, Nottingham, Principality, Skipton, West Bromwich and Yorkshire.
The rating cuts did not concern HSBC, Barclays or Standard Chartered, Moody's said.
RBS said it was "disappointed" that Moody's announcement did not reflect the "significant progress" the bank had made to restructure it finances.
"We do, however, see the removal of implicit government support for the UK banking sector as being a necessary and important step forward as the sector returns to standalone strength," RBS said in a statement.
Lloyds said that it believed Moody's was reflecting what was already understood in the market, and that it would "have minimal impact on our funding costs".
Nationwide said that Moody's announcement was part of an industry-wide review, and "not a reflection of Nationwide's business model".
The building society said in a statement: "Nationwide remains one of the strongest and best capitalised financial organisations in the UK".
Hope the above helps,
Gordon 45
Downgrading of UK banks
Good evening Gordon45,
I am glad to know that HSBC,the bank I was advised to open an account with,isen't part of the downgraded ones.
However,whether I actually made the right move at this point remains to be seen,as some comments have been made 2 days back by a prominent minister of the country where I reside,that they are thinking of restricting the amount of money expatriates can send outside....!I wish I was a mind reader,so that I knew what those guys have actually in their minds and when to transfer my precious GBP funds,money that I got back from our Liquidator so far.
Another worry to think about.
Gordon45,very best regards to you and as we say in french,merci beaucoup
Jean-Charles
Downgrading UK banks
This article mentions some of them
http://www.structuredfinancenews.com/news/UK_Banks_downgrade-224060-1.html
I read somewhere that RBS is even more of a basket case than Italy's UniCredit.
Having learnt the hard way I now have 6 accounts all with less than the 'protected' amount in them.
Regards, TonyC
Downgrading of UK banks
I don't have a clear idea what they are, but as I understand it, all UK banks, just like the banks here in Hong Kong, have a certain limit on what amount is "Protected" -- maybe something like HK$100,000 per person per BANK.
So it would seem it pays to spread your money around, if you have more than the "protected" figure -- and I imagine a bank would inform you what that is, although it must be the same for all UK banks.
In fact, at the start of the 2008 crisis, with all my KSF money disappearing into infinity, I thought, I went looking for banks to spread what little I had left -- and around that time the HK government introduced the $100,000 "guarantee" for all deposits. There wasn't one before (as far as I know).
Yes, indeed, none of us here want to get "bitten" ever again -- we simply cannot afford to. And hiding your ill-gotten (?!) gains under your bed really isn't the answer... as those pennies and farthings can get to be pretty uncomfortable after a while....
Compensation limits
I am astounded that anyone using this website could still have no clear idea what amount is 'protected' in UK banks!
Just for the record, the current compensation limit for retail deposits in all UK mainland banks (regulated by the FSA and covered by the FSCS) is £85,000 or 100,000 euros, whichever is the higher. This is in line with the EU directive (100,000 euros). It should be paid with 20 working days of your claim being approved.
In Jersey, Guernsey and IOM, the limit remains at £50,000. Moreover, as I've recently posted elsewhere, these schemes (as opposed to the UK one) are not pre-funded (money is only collected after a bank fails) and the amount the banks and/or Government can be required to contribute to the compensation fund is capped, with both annual and 5-year limits. So if a large bank or several smaller banks fail in that period, there may not be enough to respect the 'guarantee' and you may get little or nothing and/or have to wait many years to receive your due. In the IOM at least, there is no upper limit taken to pay out.
The limit applies to the amount you hold in accounts across all banks in the same Group, so you need to be careful when spreading your deposit around. Some banks which sound different are in fact associated in the same corporate group. I've seen a list of these somewhere but don't have the link to hand. In any case it must be a moving feast!
And in the final analysis, nothing is really "guaranteed", not even in the UK: I imagine that in the case of a large-scale melt-down there simply would not be enough cash to pay everyone out up to the compensation limit.
It seems (to me anyway) worth considering ns&i (National Savings & Investments) which, as a government agency, is not regulated by the FSA. Deposits are “100% secure, as we are backed by HM Treasury – there is no overall limit on how much is guaranteed”. Some of their savings accounts are open to non-residents (I recently opened one with no problem using my address in France). Interest is paid gross and their online “Direct Saver” instant access account (open to non-residents) is currently paying 1.75%. Only problem for expats: no current account facilities and you need to a have a linked UK current account to be able to operate the ns&i account (this can be in IOM or CI as they are part of the UK banking system). http://www.nsandi.com/
To Anrigaut & others
Hi There,
If you wish to see a list of Banks that are independent of each other, or part of the same group with the same firm reference number (FRN) then visit the fsa.gov.uk website or moneysavingexpert.com.
You will pick up list of all the banks and building societies and their relationships including foreign banks covered under the UK £85,000 compensation scheme.
Gordon 45
Downgrading of UK banks
Thanks for the follow up on that,OnceBitten,and ironically enough,one of my friend who happens to be in a top senior position for one of the leading french bank,has been banking with HSBC in Hong-Kong for over10 years,so HSBC can't be that bad after all......worth considering a transfer of funds there.
HSBC Hong Kong
I was under the impression HK guaranteed up to HK$1000,000 Is that not the case ?
HSBC Hong Kong
The Deposit Guarantee ( for all registered banks in Hong Kong ) is HK$500,000