What happens if one of the banks go bust

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cisco

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What happens if one of the banks go bust

(a) to any savings

(b) to any loans taken out with them

(c) to a pension with them


anyone think this is likely to happen here?
 
Re: the questions listed by cisco;
The question re: deposits has been well dealt with
but what is the outcome for any loans owing or
pensions with them.?

regards
Mask.
 
Presumably in a liquidation situation the liquidator would have to see what s/he could do about collecting any outstanding debts including monies owed by borrowers?
 
I have on deposit with one of the Irish banks the monies from the sale of a house and I am worried. Firstly if I am correct the guaranteed on this deposit is only about 20k and certaintly this will not cover it. I am in negotation to buy a property but due to a title issue it is dragging out and may continue for upto another year. So what do I do ? I was thinking of investing in the markets but find it a little turblent and also thinking of splitting funds up into 4 or 5 banks. Any ideas ?
 
I am also very interested in understanding which banks have the highest risk of getting in to extreme financial difficulty. Is there a comparison anywhere of Savings to loans ratios of Irish banks. I believe that a reliance on intra-bank lending could be a major factor.

Also is there public information regarding the breakdown of loan books? Which banks are most exposed to development land or other short term speculations?
 
lazylump said:
I have on deposit with one of the Irish banks the monies from the sale of a house and I am worried. Firstly if I am correct the guaranteed on this deposit is only about 20k and certaintly this will not cover it. I am in negotation to buy a property but due to a title issue it is dragging out and may continue for upto another year. So what do I do ? I was thinking of investing in the markets but find it a little turblent and also thinking of splitting funds up into 4 or 5 banks. Any ideas ?
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The general recommendation here seems to be put it in Northern Rock which is 100% guaranteed by the UK Treasury.
 
Sherman said:
The general recommendation here seems to be put it in Northern Rock which is 100% guaranteed by the UK Treasury.
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Thanks; Northern Rock it seems to be just made contact with them and this 100% guarantee is only until market downturn stops but depositers willl get 3 months notice before its withdrawn. Asked them to send information re opening account.
 
lazylump said:
Thanks; Northern Rock it seems to be just made contact with them and this 100% guarantee is only until market downturn stops
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That's not totally accurate:
[broken link removed]

On Tuesday 9 October 2007, Northern Rock agreed guarantee arrangements with the Bank of England and HM Treasury. These arrangements remain in place at the current time.

  • The guarantee arrangements protect all savers, regardless of the amount deposited and apply to all existing accounts, all re-opened accounts and all new accounts.
  • They also cover all new deposits, all further interest payments and movement of funds between accounts and all term deposits, including Fixed Rate Bonds, for the duration of their term.
  • The guarantee arrangements will remain in place during the period of temporary public ownership and, as previously confirmed by the UK Government, such arrangements would not be withdrawn without at least three months notice in any event.
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Asked them to send information re opening account.
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Everything you need should be on their website!
 
If an Irish retail bank fails (and I like all truly hopes that this does not come to pass) does anyone have any detail or idea of timeline in terms of accessing sums guaranteed.
Is it days, weeks or years?
 
The Boss was just on RTE News stating that there should be no bail out of any Irish retail bank if it gets into trouble. Very strong statement. There are two possible doomsday scenarios.

1) A run on a major bank, whilst its assets still remain sound. This was the Northern Rock scenario. The monetary authorities must definitely bail out this situation as happened with NR. In fact this is already happening.

2) A major developer goes belly up to the point where the bank is actually insolvent i.e. its assets are less than its liabilities. This is a much trickier ideological call, but surely the Boss cannot be recommending that AIB or BoI should be left to collapse in such a scenario. The result would be economic chaos (I think); the Government would have no option but to nationalise the stricken bank despite the ideological reservations.
 
Hi everyone..

Long time lurker..First time poster...Is now the time to panic..Cause im starting to panic..

We have 100K on deposit with UB..have gathered all the doccuments to open a Northern Rock account (as advised by all on here..) Just need to get the certified copies of passport from Garda tomorrow morning)..But what to do in the mean time..I rang the bank today and they said that i would be able to get the money out tomorrow in cash (if i ordered it today ) I talked myself out of it ..And now if i am to order it again it wont be until next Wednesday of next week...

What do you think the best option is ..(or am I working myself into a state) ..

Say for instance if you withdraw in the form of a bank draft and bank folds...Is that draft still as good as money in the hand.



Am i being wildly hysterical..?

Any answers greatly appricated..
 
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Also a long time reader first time posting here, I'm very worried about all this, currently have 70K in savings in BoI for house deposit and am so stressed over this.
The thoughts of only getting 20K is frightening if a bank folds.

I'm thinking of taking 60K and putting in Post Office as this is guaranteed by the state (Is this correct?), and leaving rest in BoI and continuing saving.

Don't know if I like the idea of Nortern Rock after what happened before, I do know there guaranteed by the UK government.

Any feedback would be greatly appreciated, thanks
 
This sort of talk is how runs begin ! Perhaps if you all spread 20K to each of the banks, it might have the same calming effect and prop up all the banks !
 
Just watched prime time, did nothing to relieve concerns. I'm no financial advisor but cant the government see that they need to to allay any fears people may have and stand over any the main Irish banks.
If thousands were to take their money to northern rock surely that couldnt be good for Irish banking
 
The government cannot say they will guarantee the banks, but in all probability they will save them if they can (AIB - 1970's) all who are panicking, just spread your money around. Say 20K in each bank (in the Irish scheme) or up to the maximum of a foreign banks guarantee scheme.
 
Fitz26 said:
We have 100K on deposit with UB..have gathered all the doccuments to open a Northern Rock account (as advised by all on here..) Just need to get the certified copies of passport from Garda tomorrow morning)..
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I tried opening an account with Northern Rock, but ran into problems getting the certified copy of passport from a Garda. My local garda station said they don't do that any more. Did any one else run into this problem and how did you work around it?
 
brian1 said:
I tried opening an account with Northern Rock, but ran into problems getting the certified copy of passport from a Garda. My local garda station said they don't do that any more. Did any one else run into this problem and how did you work around it?
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My Garda station did it no problem.There was a thread on here recently (i cant find it now) ..
The Garda Press Office said that Garda had to do it .But some Garda stations were holding firm that they did not do it.
But the moral of the tail was you basically have to find the right Garda Station..and even then You have to hope one is in a good mood..(i.e. Helpful and not look like your asking him / her to sign there life away.!)
I think Pearse Street Garda Station was one that got mentioned as been very obliging..
 
brian1 said:
I tried opening an account with Northern Rock, but ran into problems getting the certified copy of passport from a Garda. My local garda station said they don't do that any more. Did any one else run into this problem and how did you work around it?
Click to expand...


It doesn’t have to be a Garda station, there’s a list of options here http://www.northernrock-ireland.ie/accounts/ID/?productName=demand-online
I got mine done in my local Post Office for a Rabo A/c.

There’s also option B instead of a certified passport or driving licence.
 
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