Reply to: 8 billion

[The Spartan]

Wouldn't some small business be protected by the FSCS Deposit Guarantee Scheme?

[Paddy]

How can a UK bank make losses of 8 billion ? It would be funny if it was not so serious.

How the heck can someone generate so much loss ? Cant we just shut it down ?

If I pop down to the casino and place all my money on Roulette covering 3numbers, I will gwin however, there is a slight change that zero or my missing number comes up.

[Pondlife]

This is the first image that springs to mind

[Underscore Pt2]

Is it perhaps a red herring that banks are using to keep getting bailed out and take massive risks in order to maximise their bonus ? I mean, life will go on , right ? Just turn the light off, fire every reckless banker in RBS and put a black mark against his record so he cannot work as banker again, Job done. They will obviously moan that the world will come to an end, but just laugh at them and pull the plug.

They have fired all the reckless bankers! This is all the mess of the goodwin years. All of which was encouraged by the governments at the time....but that is always ignored!

[Mich the Tester]

That's easy.

Now how can a bank such Deutsche Bank to hold $72.8 Trillion exposure to derivatives - that's how many times more than GDP of Germany?

Just how the FOOK this was possible with all the supposed supervision?

Source: At $72.8 Trillion, Presenting The Bank With The Biggest Derivative Exposure In The World (Hint: Not JPMorgan) | Zero Hedge

Sod how many times the GDP of Germany that is; it's $10,000 for everyone on the bloody planet. It's probably more than the combined earnings of humankind. The wizards of finance once again turn out to be a bunch of

[sbakoola]

and to think that Barings collapsed with only £827 million in debt due to Leeson, ok it was a small / medium sized merchant bank but still ....

[alluvial]

Yeah but the government now owns the bank so all the profits they're making offset the loss. They made 1.4 billion last year, so a few more years and the government gets its money back.

If there's any danger of the government making our money back, then it will be sold off pretty quickly to ensure that some other bugger makes the profit.

[BlasterBates]

Is it perhaps a red herring that banks are using to keep getting bailed out and take massive risks in order to maximise their bonus ? I mean, life will go on , right ? Just turn the light off, fire every reckless banker in RBS and put a black mark against his record so he cannot work as banker again, Job done. They will obviously moan that the world will come to an end, but just laugh at them and pull the plug.

Yeah but the government now owns the bank so all the profits they're making offset the loss. They made 1.4 billion last year, so a few more years and the government gets its money back.

[AtW]

Lehmans went.

Lehmans was investment bank - I don't think firms held their current accounts with them.

[suityou01]

Lehmans went. It had many fingers in many pies. 2008 crash was born. If RBS goes, another 2008 crash is inevitable but the severity remains unknown.

Either the sputtering recovery sputters for another couple of years, more QE, mini crash or credit crunch part 2. In that a second heart attack is often more damaging than the first, it would be catastrophic. It really is unthinkable.

Watched movie last night about zombies, world war z. It depicted very well the swift collapse of social order. In one scene Marky Mark shoots someone attacking his wife in a supermarket being looted. A copper rounds the corner and he (Marky Mark) throws his hands in the air in surrender. The copper walks on by disinterested and carries on looting.

It sparked a chat about what our emergency plans are? Do we have any? What advice is there out there? Is it too tinfoil hat brigade to talk like this?

The UK government and US government has web sites dedicated to emergency planning and list out the items you should keep in stock. Makes you think.

[AtW]

Will many companies lose money and go bust ?

Well, yes business account holders would most certainly lose all their money - maybe get 1 pence on pound after insolvency, best bit is that a load of other banks who sold crappy insurance on default by RBS would also go bust because they never really expected such thing to happen in the first place and were taking free money in exchange of giving false peace of mind to buyers who were then able to package their tulip as AAA asset and borrow against it a lot of cheap dosh from the Feds...

[fullyautomatix]

If RBS collapses then how many companies will lose money and have to go bust?

The guy who allegedly run it into the ground lost his KBE, that's as much UK Govt is willing to do about it.

Will many companies lose money and go bust ? Or is it just scare mongering by the crafty bankers so that they can keep taking massive risks to garner as much bonus as possible?

[AtW]

Just turn the light off, fire every reckless banker in RBS and put a black mark against his record so he cannot work as banker again, Job done. They will obviously moan that the world will come to an end, but just laugh at them and pull the plug.

If RBS collapses then how many companies will lose money and have to go bust?

The guy who allegedly run it into the ground lost his KBE, that's as much UK Govt is willing to do about it.

[fullyautomatix]

Not quite that simple, it can potentially start a chain reaction. You see all depositiors lose their money, and when 8 billions goes missing off the balance sheets of various companies they too go bankrupt now the 8 billion has grown to 100 billion because they also have creditors, this then causes even more companies to go bankrupt, and before you know it you have a melt down...think 1929!

Is it perhaps a red herring that banks are using to keep getting bailed out and take massive risks in order to maximise their bonus ? I mean, life will go on , right ? Just turn the light off, fire every reckless banker in RBS and put a black mark against his record so he cannot work as banker again, Job done. They will obviously moan that the world will come to an end, but just laugh at them and pull the plug.

[SpontaneousOrder]

Not quite that simple, it can potentially start a chain reaction. You see all depositiors lose their money, and when 8 billions goes missing off the balance sheets of various companies they too go bankrupt now the 8 billion has grown to 100 billion because they also have creditors, this then causes even more companies to go bankrupt, and before you know it you have a melt down...think 1929!

Another 1929 is just what the doctor ordered - ponzi schemes collapse, by definition. The sooner the less damage.

Recovery from 1929 would have been pretty quick if it wasn't for FDR ******* with the economy.