Thursday, 26 February 2009

£2.3bn bank run

Savers in the UK have withdrawn £2.3bn in January this year:

Savers' £2.3bn bank raid after rates slide

Banks were put on red alert today after customers withdrew more than £2bn from savings accounts in just one month.

Industry figures showed deposits at High Street banks fell by £2.3bn in January, the first significant drop since 1999 and the largest since British Bankers' Association (BBA) records began in 1997.

BBA statistics director David Dooks advised against reading too much into one month's figures, particularly as deposits rose sharply in November and December. However, he warned that if withdrawals continued, banks could face a fresh funding crisis and reduce lending even further.

Ben Yearsley, an investment manager at Hargreaves Lansdown, said savers were moving funds from cash Isas and other savings accounts with banks to the stock market as well as to corporate bonds and gold.

He added: 'They are looking at the returns they are getting and thinking they are diabolical. There was a big shift in January, and February is running on a par with January. There is also nervousness about the banking system, so people are withdrawing cash.'

Sounds like a bank run to me!

Monday, 23 February 2009

Emerald Alert - detailed analysis

Following a comment on yesterdays post i thought i would look a bit deeper into irelands current financial situation:

Ireland uses NPRF to recapitalise banks

IRELAND – The Irish minister for finance has confirmed the recapitalisation of Allied Irish Bank and Bank of Ireland will be funded by the National Pension Reserve Fund.

In a statement, the government said €4bn (US$5.1bn) would come from the NPRF’s current resources while €3bn would be provided by means of a frontloading of the Exchequer contributions for 2009 and 2010.

Irish banking sector mired in borrowing costs

In some respects Ireland is uniquely badly placed to cope with the current financial crisis. It is entering recession with a hole in its public finances as property- related taxes dry up in line with the construction and housing slump.

There is no cash for a fiscal stimulus - ministers are hinting at the need for tax increases and public spending cuts to correct the ballooning budget deficit.

So on top of trying to finance a record fiscal deficit this year, set to be 9.5 per cent of gross domestic product, the government is also having to find funds to recapitalise its banks, which are facing large scale asset writedowns as property developers are unable to sell houses, and the value of collateral collapses.

Here perhaps there is some relief in sight. Ireland can dip into its National Pension Reserve Fund, a sovereign wealth fund established in 2001 as a far-sighted initiative to anticipate the greying of Ireland's population. It was originally set up to part fund the future pensions of retiring public sector workers. The fund was only meant to be drawn down from 2025.

As of December 29 assets under management stood at €16.4bn. Included in this are cash balances of €1.7bn and €3.5bn bonds, which officials say can be turned into cash.

So everythings all right in ireland.... theres plenty of money to fund the financial crisis... the government has just agreed to recapitalise two of the countrys biggest banks to the tune of 4bn from the National Pension Reserve Fund (NPRF).

BUT its only got 1.7bn in cash.... so its selling 2.3bn of bonds. All taken from a pension fund set up to cover the future pension liabilities of public sector workers which was not supposed to be touched until 2025.

I read somewhere that The Last Official Act of Any Government is to Loot the Nation.

Sunday, 22 February 2009

Emerald Alert

Scandal sees €10bn flood out of country

Up to €10 billion in funds is believed to have left Ireland in the last seven days as details of the Anglo Irish Bank scandal emerged.

Labour's Finance spokesperson Joan Burton said yesterday that the events at Anglo and its impact on Ireland's banking reputation is bleeding the country of cash.

Ireland in the face of default?

Last week ireland's five-year credit default swaps rose to a record 377 basis points.

Will ireland go the same way as iceland?

Thursday, 19 February 2009


If you go to work everyday, 9-5 and then hand over about a quarter of your income to the government every month and you're not angry about the current banking F-up, then youre either one of the financial or political elite that have been ripping off the world since time immemorial, or youre a snivelling, subservient little slave and you deserve all the subjugation you get. The UK government is bailing the banks out to the tune of £500 billion!

Wednesday, 18 February 2009

Run in the Sun

People seeking to withdraw funds line up outside the Bank of Antigua in St John's February 18, 2009.

Hundreds seek their money as Stanford fallout spreads

Hundreds of people rushed on Wednesday to withdraw money from banks in Antigua and Venezuela linked to Texas billionaire Allen Stanford as the fallout from U.S. fraud charges against him rippled from the United States to the Caribbean, Latin America and Europe.

A day after the tycoon and two top executives were charged with an $8 billion fraud by the U.S. Securities and Exchange Commission (SEC), investors and depositors in his banks and companies tried to redeem funds or sought information about their savings.

Police officers stood watch at the Bank of Antigua as at least 600 people stood in line outside.

"I'd like to get my money out," said Andrea Lamar, 28.

Friday, 13 February 2009

electronic bank run - video

"$550 billion dollar electronic bank run" - listen out for the latest revelations on the US economy.

WTF is he talking about?

Monday, 9 February 2009

Bank Users Strike

This looks like an interesting response to the global bank crisis:

The campaign for the bank users strike begins


We won't use the valuable space of this pamphlet to explain the damage banks and their governing accomplices make to us; if you are here now it's because you already know it. ¡Let's go to the point! These mobilizations on 15N are one first step, but we need to go further beyond. We all know that demonstrations are not enough to change the state of things, we need more sharp and forceful actions. Now is the time to move into action! That's why we are preparing a banks users strike.

What will we do?

It will be an indefinite strike which will not end until the worker's debt become canceled just the same as they have canceled Wall Street speculator's loss. It won't finish until the current international financial system is abolished and a new one is created, a new one directed by fair rules, which mean to cover the people needs and not those from speculators.If hundreds of thousands of people all around the world arrange to stop paying our debts, and if we support each other, they will not stop us. If there are a lot more participating in this call by withdrawing the money from the banks, we will stop this system which is enslaving us.Which meaning could have a delinquencies list if everybody was registered in it? Which strength will their seizes represent if they are affecting millions of people? What will they speculate with if we take out all the money from banks? Take part in this indefinite strike! Withdraw all your money from the bank, let's stop them speculating with our savings! Do not pay your mortgage and stay living in your home, do not pay back any personal credits, let this crisis be paid by the richest!

Watch this one grow and grow!

Straight Talking

How about this 'no beating about the bush' comment on the current state of the UK banking system:

Financial Markets Analysis: Stocks Bounce, Where Next

Meanwhile greedy culpable bankers continue to reward themselves for failure with billions of tax payers monies across the globe. In the UK the Labour governments in-action is going to cost it the next election for allowing this to happen, after-all the banking rules and contracts have already been been broken in the aid of £800 billion of liabilities with more to come, the only contracts still being held up are those that allow bankers to be rewarded for destroying the British financial system.

This is totally outrageous and unforgivable.

The banks try to defend the indefensible with statements that they need to pay bonuses to attract the brightest and smartest. So smart are these people that they have destroyed the financial institutions that they worked for, any smarter and we may be looking at an Iceland style Bankrupt Britain, which therefore supports the view of dumbing down on the employees as well as the function of the banks, i.e. to focus on lending out deposited money without resorting to financial trickery to mis-price assets so as to reward bonuses for non existent profits.

Sounds about right to me.... Bankrupt Britain!