Re: A run on Metro bank
I know this now ( to my cost) I used to keep my savings in the honourable Derbyshire Building Society.
It was taken over by Kaupthing Singer and Friedmanm an Icelandic bank .
Literature was sent out -basically a letter of comfort saying that nothing was changed .
I was concerned I rang up the MD but he assured me ( the slimy so and so that all was ok ) but it's wasn't KSF was NOT covered by the FSA as it was based in the Isle of Man .
That God forsaken little island .
THe IOM would not take responsibility for the bank going down so afraid and nasty were those who live off the financial business in the IOM
The British government ( Labour) would not either even though the bank was not large and was in fact solvent .
Nope Alistair Darling 'allowed it to fail' even though many savers were OAPS who had trusted in the Derbyshire BS .
Also there were people from Singer and Friedman a bank that had never let down its clients ( the former MD had red flagged KSF on two occasions to the FSA and they ignored him )
KSF had the money which was eventually returned to all investors .
BUT It took years and the main beneficiaries were Price Waterhouse Cooper who took MASSIVE fees .
Sadly many of the people invested died before they ever got their money back .
Even today it's not quite wound up .
Only thanks to the internet and a very determined fight by the people who had money in it was the money returned .
Moral listen to your gut !
If you feel uneasy move your savings .
Never keep a large sum in one bank a/c
This especially applies to people who have just sold an asset such as a house .
Divide your money into several accounts making such that they are not under the same licence .
( some banks are -just have different name )