Laws That Allow The Government to Seize Savings Deposits
Discussion
Analysts hours/days/weeks trying to forecast what will happen to the financial system when banking institutions get into trouble....almost without fail they have failed to predict what action Central Banks/Govts/Regulators will take to shore up the financial system. Generally they will reinvent the rules to mitigate contagion...but as happened in Cyprus or with the Exchange Controls in Greece sometimes these things will impact the individual.
In the past Institutional Investors (e.g. Pension Funds or Insurance Companies) that have bought the debt of banks i.e. put money on deposit/lent the banks money have been considered pari passu with retail depositors. This protected the institutional investors as to force them to take losses meant legally Mr and Mrs Smith would also have had to take them....the rules/structure have changed so it is now possible to "bail in" the Institutions without impacting depositors.
In the past Institutional Investors (e.g. Pension Funds or Insurance Companies) that have bought the debt of banks i.e. put money on deposit/lent the banks money have been considered pari passu with retail depositors. This protected the institutional investors as to force them to take losses meant legally Mr and Mrs Smith would also have had to take them....the rules/structure have changed so it is now possible to "bail in" the Institutions without impacting depositors.
I think that you're misrepresenting or misunderstanding what happens to be honest.
If a bank goes bust then the reality is that they (the bank) have already given your money to someone else or otherwise lost it. They dont actually keep your cash in a special vault.
What happens is that the government generously recompenses you up to the limit of the financial compensation scheme.
If a bank goes bust then the reality is that they (the bank) have already given your money to someone else or otherwise lost it. They dont actually keep your cash in a special vault.
What happens is that the government generously recompenses you up to the limit of the financial compensation scheme.
fishseller said:
Ziplobb said:
Yes
It happened in Greece a few years back anything over 90,000 EUR IIRC
should we all be worried with the amount of debt the banks look exposed and with the asset bubble ?It happened in Greece a few years back anything over 90,000 EUR IIRC
How would someone with a bit cash safe guard it ?
Edited by robinessex on Wednesday 28th June 09:18
fishseller said:
should we all be worried with the amount of debt the banks look exposed and with the asset bubble ?
Carney thinks so.http://www.bbc.co.uk/news/business-40416976
fishseller said:
How would someone with a bit cash safe guard it ?
Well, if you don't trust the banking system... <points to mattress>fishseller said:
When a Cyprus bank went bust in 2013, the Government SEIZED 40% of ALL SAVINGS DEPOSITS OVER €100,000.
Could this happen here?
Could it? Yes.Could this happen here?
Is it even remotely likely? No.
What actually happened in Cyprus...? Well, it was a lot more complicated than you make out... Not least because a large swathe of the deposits affected were dodgy Russian money being basically laundered through a tax haven.
https://en.wikipedia.org/wiki/2012%E2%80%9313_Cypr...
The only other time it's happened in a modern economy was in Italy in 1992, and that was only 0.6%.
TooLateForAName said:
I think that you're misrepresenting or misunderstanding what happens to be honest.
If a bank goes bust then the reality is that they (the bank) have already given your money to someone else or otherwise lost it. They dont actually keep your cash in a special vault.
What happens is that the government generously recompenses you up to the limit of the financial compensation scheme.
Are you referring to my post ?If a bank goes bust then the reality is that they (the bank) have already given your money to someone else or otherwise lost it. They dont actually keep your cash in a special vault.
What happens is that the government generously recompenses you up to the limit of the financial compensation scheme.
I've already got half an eye on the possible outcomes in this respect if Corbyn ever becomes Prime Minister. It'd be disastrous for the country, but would play brilliantly with a lot of his supporters. He said there'd be a "day of reckoning" for bankers if he got in, and I'd assume a 20% haircut on savings would be at the mild end of whatever he meant by that.
I held off from funding my pension as heavily as I could in years past because I was aware that having it sit in the state's headlights for thirty years after getting "generous" tax relief might just make it too tempting to a future socialist government, too.
I lost out there, of course, as I am now only allowed to fund £10k a year, spdespite being willing to put an entire year's salary into the pot.
Is it likely? No, not at all, but it's always worth bearing in mind the low probability but debilitating outcomes when deciding where to put your investments. It's one reason I have a decent chunk in gold. As well as it being a nice thing to have as a paperweight, it also is completely invisible to the state, and quite easy to take overseas.
I held off from funding my pension as heavily as I could in years past because I was aware that having it sit in the state's headlights for thirty years after getting "generous" tax relief might just make it too tempting to a future socialist government, too.
I lost out there, of course, as I am now only allowed to fund £10k a year, spdespite being willing to put an entire year's salary into the pot.
Is it likely? No, not at all, but it's always worth bearing in mind the low probability but debilitating outcomes when deciding where to put your investments. It's one reason I have a decent chunk in gold. As well as it being a nice thing to have as a paperweight, it also is completely invisible to the state, and quite easy to take overseas.
James_B said:
I've already got half an eye on the possible outcomes in this respect if Corbyn ever becomes Prime Minister. It'd be disastrous for the country, but would play brilliantly with a lot of his supporters. He said there'd be a "day of reckoning" for bankers if he got in, and I'd assume a 20% haircut on savings would be at the mild end of whatever he meant by that.
I held off from funding my pension as heavily as I could in years past because I was aware that having it sit in the state's headlights for thirty years after getting "generous" tax relief might just make it too tempting to a future socialist government, too.
I lost out there, of course, as I am now only allowed to fund £10k a year, spdespite being willing to put an entire year's salary into the pot.
Is it likely? No, not at all, but it's always worth bearing in mind the low probability but debilitating outcomes when deciding where to put your investments. It's one reason I have a decent chunk in gold. As well as it being a nice thing to have as a paperweight, it also is completely invisible to the state, and quite easy to take overseas.
the problem with lumps of gold is possible theft I held off from funding my pension as heavily as I could in years past because I was aware that having it sit in the state's headlights for thirty years after getting "generous" tax relief might just make it too tempting to a future socialist government, too.
I lost out there, of course, as I am now only allowed to fund £10k a year, spdespite being willing to put an entire year's salary into the pot.
Is it likely? No, not at all, but it's always worth bearing in mind the low probability but debilitating outcomes when deciding where to put your investments. It's one reason I have a decent chunk in gold. As well as it being a nice thing to have as a paperweight, it also is completely invisible to the state, and quite easy to take overseas.
Yes, it's a definite issue, so I'd norpt want life-changing amounts in it. It also pays no dividends or coupons, and has little intrinsic value.
Contrary to what some think, too, it'd be sod-all use if society collapsed. At that point you want tins of bans, guns, and a house a long way from everyone else.
Contrary to what some think, too, it'd be sod-all use if society collapsed. At that point you want tins of bans, guns, and a house a long way from everyone else.
TooLateForAName said:
fishseller said:
should we all be worried with the amount of debt the banks look exposed and with the asset bubble ?
How would someone with a bit cash safe guard it ?
spread it around so that you have less than the compensation limit in each institution.How would someone with a bit cash safe guard it ?
fishseller said:
James_B said:
I've already got half an eye on the possible outcomes in this respect if Corbyn ever becomes Prime Minister. It'd be disastrous for the country, but would play brilliantly with a lot of his supporters. He said there'd be a "day of reckoning" for bankers if he got in, and I'd assume a 20% haircut on savings would be at the mild end of whatever he meant by that.
I held off from funding my pension as heavily as I could in years past because I was aware that having it sit in the state's headlights for thirty years after getting "generous" tax relief might just make it too tempting to a future socialist government, too.
I lost out there, of course, as I am now only allowed to fund £10k a year, spdespite being willing to put an entire year's salary into the pot.
Is it likely? No, not at all, but it's always worth bearing in mind the low probability but debilitating outcomes when deciding where to put your investments. It's one reason I have a decent chunk in gold. As well as it being a nice thing to have as a paperweight, it also is completely invisible to the state, and quite easy to take overseas.
the problem with lumps of gold is possible theft I held off from funding my pension as heavily as I could in years past because I was aware that having it sit in the state's headlights for thirty years after getting "generous" tax relief might just make it too tempting to a future socialist government, too.
I lost out there, of course, as I am now only allowed to fund £10k a year, spdespite being willing to put an entire year's salary into the pot.
Is it likely? No, not at all, but it's always worth bearing in mind the low probability but debilitating outcomes when deciding where to put your investments. It's one reason I have a decent chunk in gold. As well as it being a nice thing to have as a paperweight, it also is completely invisible to the state, and quite easy to take overseas.
robinessex said:
fishseller said:
James_B said:
I've already got half an eye on the possible outcomes in this respect if Corbyn ever becomes Prime Minister. It'd be disastrous for the country, but would play brilliantly with a lot of his supporters. He said there'd be a "day of reckoning" for bankers if he got in, and I'd assume a 20% haircut on savings would be at the mild end of whatever he meant by that.
I held off from funding my pension as heavily as I could in years past because I was aware that having it sit in the state's headlights for thirty years after getting "generous" tax relief might just make it too tempting to a future socialist government, too.
I lost out there, of course, as I am now only allowed to fund £10k a year, spdespite being willing to put an entire year's salary into the pot.
Is it likely? No, not at all, but it's always worth bearing in mind the low probability but debilitating outcomes when deciding where to put your investments. It's one reason I have a decent chunk in gold. As well as it being a nice thing to have as a paperweight, it also is completely invisible to the state, and quite easy to take overseas.
the problem with lumps of gold is possible theft I held off from funding my pension as heavily as I could in years past because I was aware that having it sit in the state's headlights for thirty years after getting "generous" tax relief might just make it too tempting to a future socialist government, too.
I lost out there, of course, as I am now only allowed to fund £10k a year, spdespite being willing to put an entire year's salary into the pot.
Is it likely? No, not at all, but it's always worth bearing in mind the low probability but debilitating outcomes when deciding where to put your investments. It's one reason I have a decent chunk in gold. As well as it being a nice thing to have as a paperweight, it also is completely invisible to the state, and quite easy to take overseas.
fishseller said:
robinessex said:
fishseller said:
James_B said:
I've already got half an eye on the possible outcomes in this respect if Corbyn ever becomes Prime Minister. It'd be disastrous for the country, but would play brilliantly with a lot of his supporters. He said there'd be a "day of reckoning" for bankers if he got in, and I'd assume a 20% haircut on savings would be at the mild end of whatever he meant by that.
I held off from funding my pension as heavily as I could in years past because I was aware that having it sit in the state's headlights for thirty years after getting "generous" tax relief might just make it too tempting to a future socialist government, too.
I lost out there, of course, as I am now only allowed to fund £10k a year, spdespite being willing to put an entire year's salary into the pot.
Is it likely? No, not at all, but it's always worth bearing in mind the low probability but debilitating outcomes when deciding where to put your investments. It's one reason I have a decent chunk in gold. As well as it being a nice thing to have as a paperweight, it also is completely invisible to the state, and quite easy to take overseas.
the problem with lumps of gold is possible theft I held off from funding my pension as heavily as I could in years past because I was aware that having it sit in the state's headlights for thirty years after getting "generous" tax relief might just make it too tempting to a future socialist government, too.
I lost out there, of course, as I am now only allowed to fund £10k a year, spdespite being willing to put an entire year's salary into the pot.
Is it likely? No, not at all, but it's always worth bearing in mind the low probability but debilitating outcomes when deciding where to put your investments. It's one reason I have a decent chunk in gold. As well as it being a nice thing to have as a paperweight, it also is completely invisible to the state, and quite easy to take overseas.
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