Metro bank - bank run?

[anonymous-user]

Seeing a lot on twitter about a “bank run” on metro bank

Eg

https://twitter.com/pat_gdretail/status/1127234171...

https://twitter.com/hoskingthetimes/status/1127280...

https://twitter.com/the_photographr/status/1127252...

https://twitter.com/metrobank_help/status/11272519...

[JulianHJ]

Surely the FSCS would cover the vast majority of customers in the event that Metro hits the rocks?

[ChrisNic]

Worrying this, I would imagine a “run” like this could itself take the bank down and that the initial reason for the concern probably wouldn’t have had that impact.

[CoolHands]

Do you know it’s funny, about a year (maybe 2) ago I was going to post a thread about metro bank - I was interested to ask why a new branch that opens near me seemed a give or activity, all brightly lit & st. And always plenty of customers going in, going out, waiting inside, having meetings with advisors etc. But I never got around to it,

I kept thinking it looked like one of them architects planning drawings / models where they always have members of the public busily enjoying the ‘space’ in all the sketches to make them look like a great public asset.

Always seemed shady

Ps loving the whatsapp social media angle, it’s like India when they all go and stone some poor villager to death cos of some rumour

Edited by CoolHands on Saturday 11th May 21:11

[L555BAT]

https://twitter.com/_MithraBala/status/11271689315...

tweet said:

Some text message went around to all Tamils saying Metro Bank is going bankrupt and it is currently FULL of Tamils trying to take their jewellery out looooool

Believeable at a glance seeing the people in the first tweet in the original post?

[Turfy]

I was in Metro Bank (Chiswick) today as a customer and it all seemed fine.

I have just made a test payment on the app and all is fine.

The big banks will be rubbing their hands together at the sight of this and no doubt fuelling the fire.

[Lemming Train]

Yes, I saw some posts about it at the end of last week and transferred all my money out. There's rarely smoke without fire and we saw the same "nothing to see here, move along folks" with Northern Rock and a number of high streets banks at the last financial crash and look how that panned out. Not taking the risk here but YMMV.

[Johnnytheboy]

Metro do seem to be expanding the branch network while every one else is contracting theirs....

[anonymous-user]

There is a capital raise in the offing according to some

https://news.sky.com/story/embattled-metro-bank-to...

[Fittster]

Lemming Train said:

Yes, I saw some posts about it at the end of last week and transferred all my money out. There's rarely smoke without fire and we saw the same "nothing to see here, move along folks" with Northern Rock and a number of high streets banks at the last financial crash and look how that panned out. Not taking the risk here but YMMV.

How many customers lost money then?

[Lemming Train]

[KeithE]

Lemming Train said:

Actually, unless you better than £80k in the bank it is as it’s guaranteed by the FSCS

[Lemming Train]

That's wonderful and it's nice to see so many people have full trust in the government and 'the system'. But I'd still rather have it where I can access and use it right now rather than have it tied up and inaccessible if they go pop and then have to fill in a load of paperwork to get it back at some point in the future. Like I said, ymmv but I like a simple life and it makes sense to me to get my money out so that I don't have to deal with the hassle should they go bankrupt.

[anonymous-user]

JulianHJ said:

Surely the FSCS would cover the vast majority of customers in the event that Metro hits the rocks?

If I was a customer of Metro, I would rather have the cash in my hands or transferred to another bank, than await reimbursement via a third party whenever they got round to it, no doubt after reams of form-filling.

[Helicopter123]

KeithE said:

Lemming Train said:

Actually, unless you better than £80k in the bank it is as it’s guaranteed by the FSCS

But still, why take the chance? Other banks are available with similar accounts but let you sleep at night.

[KeithE]

Don’t disagree that I would rather have the cash in my hand (or a more stable bank) but there is no question that up to £80k is ‘safe’

[BlackLabel]

"Shares in Metro Bank have fallen again as investors grow increasingly nervous and impatient for news of a promised injection of new money to help strengthen its finances.

The price was down 15% at one stage on Thursday, before closing 8% lower. The value of the 66-branch bank has plunged 85% over the last year.

Metro Bank is trying to raise £350m to help plug a hole that emerged after the bank revealed in January it had miscalculated how much shock-absorbing capital it needed to support a number of business loans.

That news in February sparked a 40% fall in the shares, and the price has nearly halved again since then. At the time, chief executive Craig Donaldson said there were "absolutely no question marks" over the bank's future.

At its recent earnings announcement, Metro Bank further revealed that some of its larger business customers had begun taking money out of the bank."

https://www.bbc.co.uk/news/business-48215674

[BlackLabel]

L555BAT said:

https://twitter.com/_MithraBala/status/11271689315...

tweet said:

Some text message went around to all Tamils saying Metro Bank is going bankrupt and it is currently FULL of Tamils trying to take their jewellery out looooool

Believeable at a glance seeing the people in the first tweet in the original post?

Metrobank are now the only high street bank that offer safety deposit boxes - something very popular among those from a south Asian background. The piece below states that the highest demand for such boxed is currently in the Luton and Hayes areas.

https://www.thisismoney.co.uk/money/saving/article...

If a bank does go burst I’m sure customers will eventually get their boxes back but no doubt it will be a hassle and take a bit of time.

[anonymous-user]

And not much makes some users of safety deposit boxes more jittery than the thought of ‘the authorities’ poking round their box!

[TeamD]

JPJPJP said:

And not much makes some users of safety deposit boxes more jittery than the thought of ‘the authorities’ poking round their box!

Fnaaar! *giggle*