How to avoid having your dough in a bank that might go belly up?

[ChavWivaLawDegree]

Since I am now working and I want to make sure my hard earned doesn't end up disapearing up some city boy's nose or in some high risk gamble, I changed my bank account to the ethical invester, the co-operative bank. Do you think the ethical and mutual banks might do better now the others have all been exposed by their dodgy unethical investments?

[mockney piers]

I think you may be conflating unwise investments and unethical investments (though in fairness the big banks were generally doing both, it wasn't really the latter that were their undoing), but I have to say I like the concept of a cooperative bank if the gains accrued from my investments eventually come back to me rather than some shareholder('s nose).

I bet you in order to be competitive they still hire city boys and offer bonuses that doubtless often end up their noses though...it's just the way of things.

[ChavWivaLawDegree]

I just got very nervous when my other two banks, Citibank and HSBC - both massive banks - had a wobble after the sub-prime debacle.

I didn't mind using them when I was broke - high interest rates on the citibank current account, but now I'm earning, I don't want to give them my money for ethical reasons and cos I don't want it disapearing!

[Huguenot]

I'm not sure that Northern Rock went belly up because it was unethical?

It went belly up because it was exposed to international credit markets to support its mortgage loans. The markets caught a cold in the US, and NR was collateral damage. NR probably didn't have enough strings to its bow, but its chief crime was trying to sustain investor confidence by not coming clean quick enough. We'd all have done it.

They weren't guilty of high risk gambles or cocaine, just of being a one-trick pony.

Had Co-op also been dependent in this area, they'd also be pushing up daisies.

Your first 35 grand is covered by HMG, if you've got more than that in the bank then you need better advice :)

[ChavWivaLawDegree]

Haha - not yet, but I'll give you a shout when I have, Mr Hugs!

[Tony.London Suburbs]

I would strongly recommend re-investing in my Business,which frankly needs new "investors" and "partners"...to start the ball rolling just E-Mail me at "duckersndiversrus.co.uk" and I will take your Bank a/c details so that we can commence proceedings..look forward to your earliest response Partner>:D

[SteveT]

I thought Northern Rock went belly up because it was borrowing short and selling long.

A very basic mistake.

I was also told that NR was probably the safest investment bank since it's nationalisation.

I am no expert on these matters though, and it seems the experts aren't either.

[Brendan]

Well you could just choose not to have a bank account.

Oh no wait that would mean you couldn?t earn a salary, pay any of your bills, buy anything from a large number of retailers, have insurance, drive a vehicle, have a house or indeed formally exist.

Whew, it?s a good thing that banks are properly regulated and subject to law considering the indispensable public service they provide.

[SteveT]

Odd business banking, if they make profit it's the banks,

If they make losses it's ours, the general publics losses.

What other business has this infallible option?

[Brendan]

Central government perhaps?

[Huguenot]

Sorry Steve but the rumours aren't accurate. There's a good layman's summary on Northern Rock here.

I can sympathise with your views on banks and bailouts, but I reckon they make better politics than sense. The financial system on which we all rely is built on confidence rather than metal. If we let the system collapse on point of principle we'd really be cutting off our noses to spite our faces.

They go down and we all go down ;-)

[giggirl]

My money is in the ICICI Bank HiSave Savings Account. Hope that's safe or no more shoes for me!

[firth]

Banks, hah.

Whats the biggest crime to run a bank or to rob a bank. The latter I think judging by the sizeof profit.

[SteveT]

Huguenot thanks for the info it was actually readable.

My money tip for 2008 buy gold and guns, if you have the one you'll need the other to protect it.

[Keef]

I used to keep all my money in the one place, but since the CPT has changed management, I've started leaving it behind a wider range of bars.

[giggirl]

firth Wrote:

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> Banks, hah.

>

> Whats the biggest crime to run a bank or to rob

> a bank. The latter I think judging by the sizeof

> profit.

I may be over-sharing here but my bigest fantasy ever is to rob a bank. OMG I would just love to do that. Oceans 11 in ED (yes I do know that was a casino but I still so would)

[indiepanda]

Provided you have less than ?35,000 in deposits with any one banking group it's guaranteed to be covered under the the financial services compensation scheme anyway, so not a major issue.

If you have more probably a good idea to spread between banks. Be careful if you do that they aren't part of the same ultimate company - so many companies run more than one consumer brand it's not always obvious.

http://www.fscs.org.uk/consumer/key_facts/limitations_of_the_scheme/compensation_limits/

As for Northern Rock, the FSA have been found to have been pretty incompetent in their supervision of Northern Rock, same as they were with Equitable. Basically the regulator wasn't regulating!

[ChavWivaLawDegree]

"My money tip for 2008 buy gold and guns, if you have the one you'll need the other to protect it" - agreed!

[ChavWivaLawDegree]

Or land and guns

[Brendan]

Hmmm? How does one go about opening up a gun shop?

[ChavWivaLawDegree]

Move to France!

They allow you to have quite an arsenal - Italy is even more generous - but then they are all a bit right wing for my taste.

[Tony.London Suburbs]

giggirl Wrote:

I may be over-sharing here but my bigest fantasy

> ever is to rob a bank. OMG I would just love to

> do that.

....Hi! Just seen your comment.I'm trying to get a lively crew together at the moment for a venture and I do not want to use any faces known round the Manor if you get my meaning(!)

Would you be up for it,at your earliest convenience,and,if so,what role would you like to perform?.Could you,for instance,stick a shooter up someones hooter?...

I realise this is not the best place to converse but we can,at least,get the ball rolling on here Babe.

I'm aiming "big-time" yougetme?..Coming along for the craic?B)

[Peckhamgatecrasher]

Could I be in charge of blowing the bloody doors off?

[Tony.London Suburbs]

Peckhamgatecrasher Wrote:

-------------------------------------------------------

> Could I be in charge of blowing the bloody doors

> off?

...If you wear a Mini and you are discreet.Why Not?..All are welcome for this little caper:)-D

...p.s.Looks like "giggirl" has lost her bottle already(6)

[Asset]

the establishment that I have my money with has just reported a loss of several billion, maybe we should all start keeping accounts in the red, then there's nothing to lose.