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To be worried about a European bank run?

(20 Posts)
Funk Mon 08-Aug-11 09:12:53

www.housepricecrash.co.uk/forum/index.php?showtopic=167604#

I posted this on chat and no one has replied. Someone here pointed me towards this site.

I have money in Santander (who I will never, ever deal with again after I get my cash out).

Is it only me that's worried?

StrandedBear Mon 08-Aug-11 09:20:41

Message withdrawn at poster's request.

fedupofnamechanging Mon 08-Aug-11 09:25:07

How much money do you have in there? The govt guarantees to reimburse a cetain amount if the bank does go under (I think around £75,000, but not sure)

Funk Mon 08-Aug-11 09:28:48

Stranded - you haven't read it properly.

Karma - it's not so much my money ( I know it's guaranteed up to 85k) but the whole situation is pretty scarey again isn't it.

CogitoErgoSometimes Mon 08-Aug-11 09:29:44

I replied to your Chat thread. I'll repeat what I said, however. Check your Santander account's terms and conditions. You should find that it is covered by the FSA compensation scheme. This is a scheme that protects account holders' deposits up to £85,000 per financial institution. FWIW Santander is one of the better European banks, did not need a bail out in 2008 and is generally regarded as well-managed.

Funk Mon 08-Aug-11 09:32:48

Cogita - oh no you didn't (in panto voice).

Santander as far as I'm concerned is shite. They have made so many mistakes and I've had such shite service from them. I never went with them in the first place it was an account rolled over from Bradford and Bingley. I'm no so much concerned about my cash as I know its covered by the government guarantee, it's just the whole situation the country is in again.

PS I strongly disagree with you about it being one generally regarded as well-managed!

fedupofnamechanging Mon 08-Aug-11 09:35:49

I owe Santander money (car loan), so I am less worried grin.

Tbh, I am trying very hard not to worry so much about things beyond my control. It just makes me miserable and stressed.

Whatmeworry Mon 08-Aug-11 09:39:48

Never mind, they'll just take more of your childrens future tax to pay off the bankers.

Now that is what we should be rioting about.....

CogitoErgoSometimes Mon 08-Aug-11 09:40:49

With respect, one poor customer experience does not mean an entire bank is mismanaged at macro level. Try to keep it in perspective. Try also to do the same with the more general financial picture rather than panicking unduly. If you can place your deposits in index-linked bonds you will be protected to some extent against inflation - the most likely outcome of the recent jitters. Although, even there, we are not about to see Weimar or Zimbabwe-style inflation.... more like 5%. If you have any debts and can pay them off that also increases your level of security.

niceguy2 Mon 08-Aug-11 09:43:51

The banks won't fail. History has shown that government's won't let that happen. Whether or not you think it's a good thing or the right thing very much depends on your politics. So in terms of savings, they are safe.

The problem is that shares will nose dive, bond prices will go up for European governments (And US) who are all still in large deficits. Well Germany's not but they have to bail everyone else out as they're the only ones in this part of the world with any cash.

So anyone with any stocks based investments like ISA's (not cash ISA) etc. they're going to be in for a hard time.

All this saps confidence so house prices won't be rising anytime soon. We'll be lucky if they start to rise before the next election I reckon.

ivykaty44 Mon 08-Aug-11 09:46:28

When santander took over B&B there was nothing at all stopping you from closing the account - that is exactly what I did with dd2's account as I knew what a poor service they gave so I withdrew her money and put it under her bed safe wink

You have had what two years to decide to do this and YOU decide to leave your money with them - you pay the consequences.

I think if you look back through the archive of Sunday times you will struggle to find a week when there isn't a letter complaining about Santandire for probably around 5 years

Funk Mon 08-Aug-11 09:49:20

Niceguy - banks have already failed - I can name several. I also had money in Icesave - which was covered by the FSC, however that was a close call. A small English bank failed last month (and wasn't saved). Savers lost money over 85k.

I agree about the house prices situation though - down is the only way they are going.

Funk Mon 08-Aug-11 09:50:39

IvyKaty - you haven't read properly have you? I have fixed bond. It is however, under 85k so I am not concerned about that per se. I am more concerned about the whole thing kicking off and where we go from here.

CogitoErgoSometimes Mon 08-Aug-11 09:52:41

Do you suffer from anxiety more generally or is it just about the banking situation? Tip for a happy life.... only worry about the things you can do something about. Otherwise you'll be a bag of nerves.

niceguy2 Mon 08-Aug-11 09:54:52

I guess it depends on your definition of fail then. What i meant when I said that is that the government won't just let banks go bust. I was also an Icesave saver and I even remember checking before opening my account and seeing that deposits were guaranteed by the Icelandic government. Cool, I thought. Safe then, I mean a whole government guaranteeing my cash.....lol

Anyway, the European governments won't let their banks just go bump. Worst case scenario is they get nationalised like B&B, Northern Rock. I guess you can argue they have failed but at least you & I can still get cash out.

Funk Mon 08-Aug-11 10:00:46

Southsea Bank failure

F1lthym1ndedvixen Mon 08-Aug-11 10:03:44

what happens if you have your mortgage with a bank which goes under?

CogitoErgoSometimes Mon 08-Aug-11 10:18:11

When Northern Rock went down the mortgages and other debts owed simply passed on to the new owner.

ivykaty44 Mon 08-Aug-11 11:18:11

if the bank goes under - then the receivers can foreclose on your mortgage - meaning they demand all the money in one go otherwise you lose your house - don't forget your house belongs to the bank whilst you have a morgtage and thus it could lead to problems.

A bank can foreclose at any time anyway - read the small print and my grandfather had a bank foreclose on him back in the 1940's so he had to quick smart borrow money from else where or lose the house

ivykaty44 Mon 08-Aug-11 11:20:43

funk - the first mention of a bond is in your last post - no other post actually mentions bond, cash more than once but not bond

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