Bank Bail-ins [rather than Bail-outs]

[Rob D]

Don't think this is anything in immediate future - but something to keep on your radar for the future maybe.

 

Bank bail ins are where the banks in effect take your cash and then issue shares [to keep themselves solvent] does seem to be a considered tool. You're supposed to be protected up to £85k in the UK - although I read the below and wonder.. [link to gov website below].

 

 

Bail-in powers implementation - GOV.UK

WWW.GOV.UK

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It says a 'higher priority ranking in insolvency' - which seems to me to have room for interpretation!

 

 

 

Why bring it up now? A YouTuber I follow was talking about this - and on 22nd July 2021 Bank of England published this below [which is almost impossible for a layman to understand]. Makes me wonder why they are 'prepping the paperwork now'?

 

 

Executing bail-in: an operational guide from the Bank of England

WWW.BANKOFENGLAND.CO.UK

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Today, the Bank of England published Executing bail-in: an operational guide from the Bank of England.

 

 

This did happen in Cyprus in 2015 [plenty vids on youtube]

 

 

 

 

 

 

What can you do about it? Not sure really - and if you don't have much in the bank then I guess it doesn't matter... It may never happen but thought I'd post it on here to see what folks reckon or as a heads up. We use paypal for all our payment processes - I checked their terms and conditions pretty well and in effect you are lending them the money with all liability on you ie. if they lose it - tough! It's on you the customer not them!

 

If you owe the bank more than you have then again - not sure they can do much.

 

 

 

[Steve Bullman]

Even more reason to put your money in crypto!

[trigger_andy]

Even more reason to put your money in crypto!

Or Gold.

[Rob D]

3 minutes ago, Steve Bullman said:

Even more reason to put your money in crypto!

 

Yep stable coins in a private wallet where only you have the keys - as if this happened your Bitcoin would be safe - but worth a lot less $$ value for a while!

 

But on a third party app like Crypto.com - could they class those as savings and take a slice of them as well? Same as stocks and shares... I can't understand all the small print in the above 😅

[Rob D]

Or can you work it so you owe the bank more than it owes you!

 

[doobin]

If they implement this, then crypto will be useless as they will just stop you from changing it into Fiat. 
 

yeah you could buy coke off the dark web with it…but not food to eat. 

[Mark armstrong]

1 hour ago, doobin said:

If they implement this, then crypto will be useless as they will just stop you from changing it into Fiat. 
 

yeah you could buy coke off the dark web with it…but not food to eat. 

You could give you Coke to shoplifters in exchange for food clothes etc though haha