Who loses out if Anglo fails?

I've been thinking similar things as Fungus - how are Anglo able to offer the best rates almost across the board if they are 'in trouble' ?

I have a range of accounts with them at the moment and am vaguely uneasy about something but I'm not sure what. The rates are as good as I can find, the regular 100K guarantee would have covered them in the event of something going badly wrong and the 2010 guarantee would also cover them too.

So, how come they are perceived as being 'risky' for anyone other than the shareholders who bought in at €10 and are now looking at vakues around 20c ?

Optimum - I would have thought as Joe Public that most people/companies would be trying to maximise their returns in general and so would (where not tied in by fixed terms) move money within the bank to the best available rate. Maybe not on day 1 of a new rate or account, but certainly within a few weeks/months. I moved some money from a 4.5% 30 day account with them to a 6.0% demand account for just that reason. I still can't understand why anyone would leave money on 30 days with them when they can have it on demand for 33% more return. What I'm getting to here is that I would have thought that in general most non-fixed money would be in the higher paying accounts over time.

z
 
OPTIMUM - yes I am focusing on their best rates which is where the vast majority of their deposits and new business is.

zag said:
I've been thinking similar things as Fungus - how are Anglo able to offer the best rates almost across the board if they are 'in trouble' ?
Click to expand...

Exactly. That is the key question - Why are they doing this? They said with their last set of accounts that they wanted to increase their loans to deposits ratio. Are they making their loan book look small as a percent of their TNA ? or is it to help cover loan requirements ?

It is hardly a short term land grab - Surely they can't afford that right now.

Somethings up.
 
Zag, you would think so but Joe Public isnt that proactive when it comes to getting the best return on their savings, like AAM posters.
Check out the monthly statistics on [broken link removed]
Table B2.2 37bln sitting in demand and overnight accounts earning an average of 1.53%, 8bln in notice accounts at an average of 3.91%.
Look at all the banks list of accounts and you will see accounts paying as little as 0.1%. Based on the average rate Joe Public is earning in demand accounts would lead me to assume that less that 10% of consumers are in high rate demand accounts.
itsyourmoney.ie cost comparsions hasnt worked obviously to get consumers to achieve best value = another Financial Regulator waste of money function.
 
Yeah, Anglo's rates are linked to public perception of the risk factors associated with their deposits. However, this does not fully explain why their rates are so much above base rate, the competition and EURIBOR.

OPTIMUM said:
itsyourmoney.ie cost comparsions hasnt worked obviously to get consumers to achieve best value = another Financial Regulator waste of money function.
Click to expand...

It hasn't worked to get everyone on the best product but no one should expect The Financial Regulator, AAM best buys and other comparisons to get everyone to improve their personal financial management. If it can help a significant number of people, help promote new entrants and promote competition then it has served purpose.
 
If Anglo goes down
The Taxpayer will lose some of his/her investment
The Taxpayer will have to put more into the other banks
The Taxpayer will have to fund more social security for employees of customers of Anglo who have folded
The Taxpayer will pay more for for government debt

The arithmetic is worth doing but of course the numbers may not be credible. Thus the answers could be unreliable. Did any Receiver ever find they could rely on Balance Sheet values pre receivership? They are usually as valid as an eleven bob note!
 
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