Is Your Bank Safe Or Is It Not?

[seatkid]

After the Northern Rock crisis, I thought I'd put up a post to keep track of consequential developments as I am convinced that more trouble is to follow. Forum members with savings or current accounts should be on the look out for dodgy banks or societies as IMO the next one is unlikely to get a helping hand from the government.

 

My Observations this weekend:

 

Northern Rock looks a dead donkey and will be picked to death by Hedge funds, if the death does not occur within the next 3 - 4 weeks there will be a good chance that savers and current accounts will disappear into the FSA compensation loop which may mean up to a year before you get access to your money. What's left of it.

 

Alliance & Leicester gets frequent mention in the press as a likely next NR, it is x5 mortgage (UK sub-prime) lender and they recently announced they abolished overdraft charges (to be replaced with modest one of charges) - banks don't give away money for nothing - they are trying to hold onto customers desperately.

 

Bradford and Bingley also mentioned a lot, just started nationwide TV campaign for buy to let mortgages (potential sub-prime). Apparently a lot of NR money has flowed into B&B who recently opened up a 6.4% internet saver account. Obviously trying to grow aggressively, exactly what Northern Rock did and got so wrong.

 

Yorkshire Building Society just informed me that they put up their internet saver rate by 0.25% today. Problem is that Northern Rock did exactly the same about 2 weeks before they went tits up!

 

HSBC shut down their US subprime unit, Decision One at a loss of around $1 billion last Friday. But HSBC are big.....aren't they?

 

Barclays are struggling to sell their UK subprime business (the one Carol Voorderman works for) even at a loss leader price. Barclays are the bank that allegedly keep forgetting to ask for money early enough (and so have to go the BOE instead).

 

I will post any other titbits as I get wind.

[mumof4]

Halifax ok then??? :wacko:

[stevic]

I noticed last week that Alliance and Leicester shares had dropped 35% , I thought if I had an investor mentality I would have invested my modest savings immediately in their shares - and what a quick profit I would have made too! Oh dear! Missed the boat again! If only my auntie had had b***s she'd have been my uncle :wacko:

[big_kev]

Barclays are struggling to sell their UK subprime business (the one Carol Voorderman works for) even at a loss leader price. Barclays are the bank that allegedly keep forgetting to ask for money early enough (and so have to go the BOE instead).

 

Now you are deliberatley trying to worry me....it won't work.

 

Barclays have enough on the BOE and their major banking buddies to blackmail their way out of anything.

Its the dodgy ex-building societies that now think they are banks that are going to get the wake-up call.

[seatkid]

Halifax ok then??? :wacko:

Halifax is part of HBOS Bank of Scotland - largish bank but again mentioned quite a lot recently for their heavy dependence on mortgage business. They recently launched a high interest bond to try and attract more retail deposits. Nowhere near as safe as they once were IMO.

 

Stevic - the vunerable banks have wildly fluctuating prices because of what the hedge funds are doing - pump and dump - the average investor won't be able to take advantage unless they've got access to real time share dealing. This pumping of shares is being investigated by the FSA as we speak - but don't expect any results.

Edited September 23, 2007 by seatkid

[big_kev]

Oh....Oh

 

Barclays in the shi...........