Major banking crash exercise

[Imsayingnothing]

Imagine you have a friend who is high up in a financial institution who tells you that in ten days time from now there is going to be a major banking crash worldwide.

The banks will bring in a credit freeze, meaning all bank account cards and credit cards will be frozen. You will not be able to use switch, cashless payments, online payments or even take cash out of a cash machine. All accounts will be frozen.

How would you prepare for this?

@lightand

I saw that film too *@leopardspotsdotdotdot*

Only link I can see for now is this
www.theatlantic.com/magazine/archive/2020/07/coronavirus-banks-collapse/612247/
Where banks are doing some of the same risky practices as before.

No idea if there is a banking collapse imminent. But it has happened before.

I’ve found a a lot of articles warning of something brewing. Plus OP hasn’t been back to clarify.

blogs.worldbank.org/developmenttalk/quiet-financial-crisis

www.cnbc.com/2020/11/17/sp-four-key-risks-could-make-2021-toughest-year-for-banks-since-2009.html

www.theguardian.com/business/2021/jan/05/world-bank-calls-for-rapid-action-to-prevent-covid-debt-crisis

Hi all it was just a sort of general idea on how people might best prepare for it if they knew for a sort time in advance.

I actually started thinking about it after reading this. www.google.com/amp/s/www.wsj.com/amp/articles/fed-to-test-ability-of-largest-banks-to-weather-a-recession-11613139891

Then I thought back to 2007-2008 when the bank's could literally only either pay everyone's direct debits or everyone's card payments, they did not have enough to cover both, only at that stage the general public didn't know. Then I thought about the bail ins and bail outs. Also generally just wondered what people would do.

Oh dear. @leopardspotsdotdotdot

One of the things that stood out for me from that film, was the time it took, from when a handful of people thought something could happen, to when it actually did.
A lot of shenanigans went on behind the scenes, before it all came out into the open.

I had a look on advanced search and the op could be a legit poster. And also he/she could just be doing a random, made-up scenario thread, in preppers. Let's hope so.

x post

As an aside, or maybe not, am I right in thinking that back in 2008-2009 crash, people could get out only £50 per day from cash machines? Or am I imagining that?

@lightand

As an aside, or maybe not, am I right in thinking that back in 2008-2009 crash, people could get out only £50 per day from cash machines? Or am I imagining that?

Depended on the back. HSBC customers in the UK were ok but other banks did restrict cash withdrawals to prevent a run.

@Imsayingnothing

Hi all it was just a sort of general idea on how people might best prepare for it if they knew for a sort time in advance.

I actually started thinking about it after reading this. www.google.com/amp/s/www.wsj.com/amp/articles/fed-to-test-ability-of-largest-banks-to-weather-a-recession-11613139891

Then I thought back to 2007-2008 when the bank's could literally only either pay everyone's direct debits or everyone's card payments, they did not have enough to cover both, only at that stage the general public didn't know. Then I thought about the bail ins and bail outs. Also generally just wondered what people would do.

Thanks OP

I feel a little more relaxed now. That said WSJ publish articles which often hint at the future frankly. They have insight into the inner workings of economic patterns which follow or influence global economies.

Perhaps a good drill, and wake up call my end ;)

This is why my nana’s generation kept money under the mattress!

@GrumpyHoonMain Thank you.
Would that have been because HSBC is more of a worldwide bank than others? Though I suppose now, Santander is at lest two countries? I am much more out of the loop now, banking wise, than I used to be.

@leopardspotsdotdotdot sorry I don’t mean I think the crash is unlikely, I mean the friend having that much notice and warning me is. It would be a big deal and I’m not sure you’d risk everything for anything but closest family if that.

@lightand

Oh dear. *@leopardspotsdotdotdot*

One of the things that stood out for me from that film, was the time it took, from when a handful of people thought something could happen, to when it actually did.
A lot of shenanigans went on behind the scenes, before it all came out into the open.

I had a look on advanced search and the op could be a legit poster. And also he/she could just be doing a random, made-up scenario thread, in preppers. Let's hope so.

Right! That’s because CDOs were such a web of financial bets, that it’s was mind blowing the volume of companies, 401k, hedges, individuals, reliant on success and potentially impacted by a collapse, that the regulations failed, the ratings failed. Web of lies and money! Michael Burry is a genius who spotted it, but vilified for capatalizing on it though.

Despite the awful impact of CDO’s - They’ve been reinvented as bespoke tranche opportunities (same thing new name), but the impact will mean BPO’s are trod with caution for a few more years

The latest hedge shorts scandal will involve the SEC and likely regulate retail stock investors though.

Global economies are tanking, so I was worried OP was hinting at something she knew!

[quote FudgeSundae]@leopardspotsdotdotdot sorry I don’t mean I think the crash is unlikely, I mean the friend having that much notice and warning me is. It would be a big deal and I’m not sure you’d risk everything for anything but closest family if that.[/quote]
I understand. However I think by the time the news and understanding gets to most even in banking, it’s too late. They’d put the word out, as they know they don’t have a job anyhow.

Yes @Blacktothepink I thought this after 2007!

I was reading the above article I posted and I keep an eye on the trends journal. Also from time to time I watch Gregory mannarino.

I guess it just got me thinking.

Ooh that made me panic a bit then! Started eyeing up my meagre savings and considered pulling it all out.

Why would you pull out savings? I never understand this, even if you had savings in northern rock you got your money back. FCFS cover up to £85,000 per financial institution. So unless you have more than this in one single bank account at a time you are covered in the even of a bank going bust.
I would also add that the big banks have spent the last ten years putting measures in place to prevent previous events happening. My OH was doing this for one bank for many years.

If I had savings I wouldn't keep them in a bank during this time anyway. I always think of Cyprus.

@Imsayingnothing

If I had savings I wouldn't keep them in a bank during this time anyway. I always think of Cyprus.

You mean during the current time?

Also, say you had £10k, where would you keep it?

Yes where would be the safest place to keep savings atm?

Before the last crash we got tipped off by a family friend funnily enough, a lot more notice than 10 days though!

@OppsUpsSide

Before the last crash we got tipped off by a family friend funnily enough, a lot more notice than 10 days though!

As in 2009? A lot of people saw that coming.

But what could be done about it?

@OppsUpsSide

Before the last crash we got tipped off by a family friend funnily enough, a lot more notice than 10 days though!

But there was no problems with accessing your money then though?

There was no issue accessing money in 2008, what on earth was the tip off you got? What did you do in response?

www.independent.co.uk/news/people/profiles/alistair-darling-we-were-two-hours-cashpoints-running-dry-2245350.html

RBS was monitoring hourly too

The banks could have run out of money if the government refused to intervene but that was never going to happen. The government did put a load of cash in and prevented it. Which was well within their gift.

I worked in a big city law firm at the time though and we did have a client who had around £30m invested in a long term vehicle. They wanted to access the money early (not because they were worried - they had another investment they wanted to make in a hurry) and pay the penalty (which was enormous) but the bank wouldn’t release it. They were within their right contractually to refuse to allow the early withdrawal but I’d never ever seen it done and I’ll admit that scared me at the time.