What happens if one of the banks go bust

[haventaclue]

If I can could I ask a basic question

As the op puts it "what happens if one of the banks go bust"

I just would like to know is my current account safe or is it the same as a deposit account €20 guaranteed or 90% of what is in it

 

[ClubMan]

I just would like to know is my current account safe or is it the same as a deposit account €20 guaranteed or 90% of what is in it

I presume you mean €20K but even for savings accounts this is not totally correct. It's 90% of the amount up to a limit of a maximum payout of €20K. In effect this means that deposits up to €22,222 are 90% guaranteed. It's not €20K or 90% of any lower amount!

There was a post earlier today on another thread about exceptions from the compensation scheme. Current accounts may be on that list.

 

[csirl]

I agree that bail out is most likely option for the big banks. Though it isnt without cost - would mean tax increases all round.

 

[paddyd]

No straight answer. This is the experience so far:

Northern Rock - Zilch (I think) though maybe some distant hope in the future

Bear Sterns - buttons.

Fannie and Freddie - buttons again

HBOS (not quite the same) - big premium on last quoted share price but this a long way off what it was just a few weeks before.

thats correct Harchibold; and in HBOS's case you actually get 0.85 Llyods shares for each HBOS one; so its the Llyods shareprice you'd be watching from now on.
In effect if you had HBOS when they were 6-800 per share, you are now forced to swap them for Llyods shares at about 250 per share. Nothing to stop Llyods shares from increasing significantly long-term of course, so this should be seen as a good thing for HBOS shareholders.
It was 250 or zilch. I'd go with the 250.