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The Artful Todger
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The Artful Todger is offline
Suffolk UK
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13-05-2019, 12:19 PM
1

A run on Metro bank

Judging by reports in the MSM there's as near to a run Metro bank as makes no difference.

This may follow a major stakeholder in Metro reducing his holding or it may not. Metro have announced it is seeking £350 million presumably to prop up it's short term exposure?

If Metro does go to the wall. Unlike the other big boys it's not "too big to (be allowed) to fail" and I doubt if the BoE of the treasury would care to "do a nosepicker" on it so while anyone with just a few grand in it will be covered by the deposit protection scheme others may not.

Could be fun to watch!
Donkeyman
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14-05-2019, 09:24 AM
2

Re: A run on Metro bank

Thanks for picking this up AT, l have not seen anything
about this in the media, maybe l'm loosing it!
I think the banks need to be scrutinised carefully nowadays
as they seem to be able to take risks that they could'nt
not so long ago! With the results that WE are still paying
for, Keep probing!

Regards Donkeyman!
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Baz46
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14-05-2019, 09:38 AM
3

Re: A run on Metro bank

I hadn't heard this either but there were news items about it and this also appeared in the national press. Apparently it was a panic as share prices fell and all the result of a rumour posted on WhatsApp. Link below gives more details:

https://www.itv.com/news/2019-05-13/...r-fundraising/
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The Artful Todger
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14-05-2019, 10:27 AM
4

Re: A run on Metro bank

Originally Posted by Baz46 ->
I hadn't heard this either but there were news items about it and this also appeared in the national press. Apparently it was a panic as share prices fell and all the result of a rumour posted on WhatsApp. Link below gives more details:

https://www.itv.com/news/2019-05-13/...r-fundraising/
Well that would be the response wouldn't it!

But look deeper. The ballance sheet is very unhealthy which is why the attempt to obtain 350 mil is being made at goodness only knows what interest rate but it certainly won't be BoE base plus five!

Then the share price since 01/01/19. That pattern doesn't indicate everything in the garden being green.

There is another thing to take into account and that is contagion within market sectors so although I've got no clam shells invested in any UK company or business I'll be watching the UK banks with some interest.
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16-05-2019, 08:33 AM
5

Re: A run on Metro bank

All banks IMO are a disgrace .
They take money but offer small returns whilst their chief executives make fabulous salaries with bonuses .
I had never heard of Metro Bank until this crisis but have had trouble with banks in the past that have 'been allowed to fail' .
Easily said by careless ministers but what if the people who have put their money into them albeit unknowingly .
Sometimes seemingly respectable banks / building societies are taken over and the protection offered to customers is changed .
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16-05-2019, 08:59 AM
6

Re: A run on Metro bank

Originally Posted by Muddy ->
All banks IMO are a disgrace .
They take money but offer small returns whilst their chief executives make fabulous salaries with bonuses .
I had never heard of Metro Bank until this crisis but have had trouble with banks in the past that have 'been allowed to fail' .
Easily said by careless ministers but what if the people who have put their money into them albeit unknowingly .
Sometimes seemingly respectable banks / building societies are taken over and the protection offered to customers is changed .

Banks and building society deposits are protected by law by the Financial Services Protection Scheme.

Check this out.

https://www.fscs.org.uk/what-we-cove...ing-societies/

If you've got a fair wedge then in order to protect it's best to use two or more banks.
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16-05-2019, 11:35 AM
7

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 )
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The Artful Todger
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16-05-2019, 12:26 PM
8

Re: A run on Metro bank

Originally Posted by Muddy ->
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 )
The Isle of Man? A corruptly administered rock populated by financial "institutions" that at best facilitate tax dodging that includes tax evasion and periodically things far worse emerge.

I'm aware of the Singer and Friedman disgrace. The rotten to the core island has its own Financial Services Authority that just about everyone that I know believed audited banks and finance houses whereas the reality was and still is that it does nothing of the sort.

I could rant on at length about that place. Sufficient to say that I wouldn't risk a bent penny on anything that was connected with it.

The economy of the whole rotten lace is totally dependent on facilitating financial ---- irregularities and up to fairly recently was defrauding the UK treasury by VAT irregularities.

The ONLY good thing that ol' nosepicker did was to put an end to that one.

I lost a few quid in the Singer and Friedman collapse too.
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Rainmaker
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North Midlands UK
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16-05-2019, 01:56 PM
9

Re: A run on Metro bank

Originally Posted by Muddy ->
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 )

Are you sure it was the Derbyshire Building Society Muddy? I thought they were taken over in 2008 by the Nationwide Building Society who still own them. They were taken over at the same time roughly as the Cheshire because of fears of financial security so they were allowed to merge with The Nationwide.
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Muddy
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16-05-2019, 03:28 PM
10

Re: A run on Metro bank

Absoutely I'm sure .
It was the Derbyshire (IOM)
If you wonder why I was with an offshore bank it's because I lived and worked overseas .
Believe it or not if you work overseas you were supposed ( although I did not ) close your bank accounts in the UK .
As I was a non resident for tax purposes I banked off shore .
Today people are still allowed to Bank off shore as long as you declare it to HMRC .
The Derbyshire was a well run BS and was under the protection of the FSA .
However when it was taken over by Kaupthing this ended but most savers like myself were not aware of this .
The IOM under severe duress eventually actioned its own safeguard of 50k but this was a lengthy process .
We subsequently found out other banks in the IOM have failed and people lost everything but now the internet makes it possible for these practices to be public knowledge .

The IOM behaved disgracefully to the depositers insulting them calling them tax dodgers etc etc .

This is an island that relies heavily on the financial services for its livelihood yet obviously despises those who keep it in business.

Best to have nothing to do with it .

Singer and Friedlander ( sorry I spelt it wrong before ) were a reputable merchant bank in the city of London before they were also taken over by Kaupthing .
 
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