The new bank bail in law?

[mph1977]

Welshbeef said:

So for those who are multimillionaires let's say they have just won the Euro lottery and cash goes into your bank account - then on that same day bank goes under you lose the lot except £75k?

only if you refuse the support offered by the Lottery operators

Welshbeef said:

What about if you sell your home and buy another but the lag in between means you've lost the lot excluding the £75k

now that is a potential risk

Welshbeef said:

What about Apple with what $100billion in Cash. Or any company with big cash reserves (maybe before payday or simply building reserves to pay VAT or Corporation tax etc) practically what happens? Clearly Apple would be bust but then so would it's employees

corporate depositors are not protected by the FSCS

[The original Nick the Greek]

Welshbeef said:

So for those who are multimillionaires let's say they have just won the Euro lottery and cash goes into your bank account - then on that same day bank goes under you lose the lot except £75k?

What about if you sell your home and buy another but the lag in between means you've lost the lot excluding the £75k

What about Apple with what $100billion in Cash. Or any company with big cash reserves (maybe before payday or simply building reserves to pay VAT or Corporation tax etc) practically what happens? Clearly Apple would be bust but then so would it's employees

No.

[DanL]

mph1977 said:

Welshbeef said:

What about if you sell your home and buy another but the lag in between means you've lost the lot excluding the £75k

now that is a potential risk

I'm not sure that it is - I've a nagging feeling that the 75k cap doesn't apply to this soft of thing. My memory is vague, but a BA I work with was looking at this just before the Christmas holidays in repect of the continuity of access to funds that banks have to comply with - I've a feeling that funds from house sales were protected.

Just did a quick Google and turned up this:

http://www.fscs.org.uk/globalassets/publications/2...

It's the "temporarily high balances" bit that is of interest - they mention life events such as house sales.

Edited by DanL on Saturday 2nd January 19:18

[DanL]

In answer to the OP, I think you have three choices. You can either;

• Spread the deposits across banks so that you're under 75k with each one.
• Pick a very vanilla retail bank that is unlikely to fail as they're not doing anything risky - Tesco likely falls into this category, by the way.
• Pick a bank so huge they can't fail without something so large happening that your deposits are likely the least of your concerns. HSBC (while their HQ is not in China) likely fits this profile, as does BNtP Paribas and Barclays.

[markcoznottz]

The original Nick the Greek said:

Welshbeef said:

So for those who are multimillionaires let's say they have just won the Euro lottery and cash goes into your bank account - then on that same day bank goes under you lose the lot except £75k?

What about if you sell your home and buy another but the lag in between means you've lost the lot excluding the £75k

What about Apple with what $100billion in Cash. Or any company with big cash reserves (maybe before payday or simply building reserves to pay VAT or Corporation tax etc) practically what happens? Clearly Apple would be bust but then so would it's employees

No.

Worrying that he is a finance director.....

[The original Nick the Greek]

markcoznottz said:

Worrying that he is a finance director.....

It wouldn't be the first time....

[Welshbeef]

The original Nick the Greek said:

markcoznottz said:

Worrying that he is a finance director.....

It wouldn't be the first time....

Banking regulation isn't really anything which plays any part of my role ditto treasury

I get the impression from the above posts your thinking small company where an FD is pretty in everything whereas that's not the case for most medium and any large companies that's what CFOs are for /the departments who flow into them.

[TooLateForAName]

Welshbeef said:

So for those who are multimillionaires let's say they have just won the Euro lottery and cash goes into your bank account - then on that same day bank goes under you lose the lot except £75k?

What about if you sell your home and buy another but the lag in between means you've lost the lot excluding the £75k

What about Apple with what $100billion in Cash. Or any company with big cash reserves (maybe before payday or simply building reserves to pay VAT or Corporation tax etc) practically what happens? Clearly Apple would be bust but then so would it's employees

Except that those evil europeans have enforced a grasping limit of only 1 million for temporary amounts like house sales/etc.


As if that wasn't bad enough, they have also ensured that sums from personal injury claims are covered without limits.

The bds.

[CorbynForTheBin]

Little snippet of info...

The Bank used by Camelot where your 'winners' account would be opened, is one of the best capitalised and has not received a state bailout.

[Sheepshanks]

sidicks said:

Welshbeef said:

I think he means IF the bank where has his £85k ISA went bust he would lose £10k

Except of course that's highly unlikely, so no loss has currently been incurred and he can mitigate the impact by spreading the assets across deposit takers etc.

So it's actually a non-issue.

My mother lies awake at night worrying about this.

[sidicks]

Sheepshanks said:

sidicks said:

Welshbeef said:

I think he means IF the bank where has his £85k ISA went bust he would lose £10k

Except of course that's highly unlikely, so no loss has currently been incurred and he can mitigate the impact by spreading the assets across deposit takers etc.

So it's actually a non-issue.

My mother lies awake at night worrying about this.

Can't you explain the situation and put her mind at rest?

[Sheepshanks]

sidicks said:

Can't you explain the situation and put her mind at rest?

Would explaining it for about the eight thousandth time help, do you think?

I could understand it if losing the money mattered but she's in a care home so is hosing money into that - all losing it would do is bring the point at which the State takes over a bit closer.