Another Bank Run Underway

[Dowdy]

The Sydney Morning Herald - Weekend edition Sep 27 - 28 2008 Pg 28

"...Indeed, of 250,000 banks in the world, only 18 are rated a AA investments, and Australia's Big Four are amoung them."

Whats the credit rating of ING. I'm under the impression that they are one of the largest banks in the world

 

[Ah Pek]

I think the big 4 will be fine. Nothing to do with prudent management but rather they have become experts in running an oligopoly. Simply rape their customers for fees and high differential interest rates. They are no less greedy and unethical as their US counterparts.

 

[dhukka]

On the basis of the previous performance of the ratings agencies, I have to say I find that less than reassuring.

Well said Julia, I'm glad someone has a memory longer than a week. Remember that Fitch publicly admitted that their own models assumed that house prices would never fall. How good of a predictor have the ratings agencies been of subsequent distress? I would argue that have been more reactive than predictive.

 

[Green08]

I didn't say I agree with the rating agencies just posted what was in the paper. I think the rating agencies have actually lead people and businesses under false assumptions for years and have alot to do with the current problem.

As far as ING I have know idea.

 

[It's Snake Pliskin]

Anyone who starts rumours about bank runs needs to be dealt with by the courts much like bomb scare pranks etc.

It is ****ing with peoples' savings.

And telling everyone that you withdrew funds is uncool too. Just because someone is worried does not mean the rest of the world needs to know and prompt others to do the same on a healthy bank, whatever bank that may be.

 

[cuttlefish]

Dont know if it means anything but last Friday I was at the local Westpac bank early afternoon and the teller told me that they was running out of money because they have had a large mount of withdrawals I did not have any problems but the guy next to me did not look too happy.

Thats not uncommon - you typically need to make a booking for larger cash withdrawals because they don't always have wads of cash lying around. (the banks don't keep millions of dollars of cash sitting around in the branch networks). I've taken $10,000 or $20,000 cash out at times without booking it and they've commented that they'll have to check that they have enough and reminded me I should book it. I suspect this is what the comment about running out of money due to a lot of withdrawals was referring to.

 

[bean]

It will happen quickly if any Bank etc in Australia goes
Macquarie, National? Bendigo? etc etc

Over the weekend
Fortis a Belgium bank - from another forum

'The Belgian-Dutch Fortis bank(that took over ABN-Amro bank last year) is near collapse .
95% of the population don't realize it for the moment.'

 

[Trembling Hand]

Yeah
Fortis Receives EU11.2 Billion Rescue From Benelux Governments

This makes me a bit wobbly, Fortis is IBs clearing and custodial bank in Oz.

Not saying run just getting a little close to home.

 

[finnsk]

pffft thats rumour mongering if ive ever seen it

Did not mean it as spreading a rumour just what was happening thought I would give my experience to fellow members here, further more I was not withdrawing money just exchange for coins as I need them for my business.
As for my money in the banks I am getting a little nervous in case of a bank run ect.
How secure is our money in the Australian bank system?

 

[rub92me]

Yeah
Fortis Receives EU11.2 Billion Rescue From Benelux Governments

This makes me a bit wobbly, Fortis is IBs clearing and custodial bank in Oz.

Not saying run just getting a little close to home.

I'm putting my trust in the below information provided by IB (for now at least)

How Much Exposure Does IB Have to a Single Bank?
IB spreads its assets in segregated accounts for the benefit of customers across at least six of the largest banks (as of September 2008). IB’s customer segregation account at Citibank is used as the “conduit” account for deposits and withdrawals but funds are then spread across these federally-approved depositories.

It is our belief that the U.S. government would do everything in its power to prevent the failure of any of the major money-center banks with whom IB maintains deposits. In the event that such a bank did fail, and in the further event that the federal government did not arrange assistance for the bank, then IB’s own, significant, proprietary capital would be required to be used to guarantee IB’s obligations to our customers.

 

[white_goodman]

Did not mean it as spreading a rumour just what was happening thought I would give my experience to fellow members here, further more I was not withdrawing money just exchange for coins as I need them for my business.
As for my money in the banks I am getting a little nervous in case of a bank run ect.
How secure is our money in the Australian bank system?

yeh fair enough, but if we cant keep our money in the big 4 theres really no other place that we could keep it...

could you imagine the turmoil if people actually lost their savings..

 

[Trembling Hand]

That is not my point rub. Fortis doesn't hold IB funds its the clearer and custodial holder of IBs ASX. Like it is to many of the big independent funds.

 

[finnsk]

could you imagine the turmoil if people actually lost their savings..

I know I would not be too happy, if I was going to lose my money I want to do it my own way, not the banks way

 

[disarray]

Anyone who starts rumours about bank runs needs to be dealt with by the courts much like bomb scare pranks etc.

It is ****ing with peoples' savings.

And telling everyone that you withdrew funds is uncool too. Just because someone is worried does not mean the rest of the world needs to know and prompt others to do the same on a healthy bank, whatever bank that may be.

yeah you're right, people shouldn't be responsible for their own destiny, they should just leave the fruits of their lifes work in a bank that doesn't really give a rats ass about depositors and we'll all just take the word of a bunch of multimillionaire bank board fatcat pricks that everything is alright.

form a queue, join the line, your time to get fleeced will come.

 

[It's Snake Pliskin]

yeah you're right, people shouldn't be responsible for their own destiny, they should just leave the fruits of their lifes work in a bank that doesn't really give a rats ass about depositors and we'll all just take the word of a bunch of multimillionaire bank board fatcat pricks that everything is alright.

form a queue, join the line, your time to get fleeced will come.

Davros that was not my point.

Rumours can cause a run on a healthy bank. In the current environment a little common sense is useful.

 

[Aussiejeff]

Davros that was not my point.

Rumours can cause a run on a healthy bank. In the current environment a little common sense is useful.

Wise words indeed.

'Tis a pity all the worlds Wunder-Banken-Menschen hadn't applied a little before it actually got to this point?

Ho-hum......

 

[chops_a_must]

Yeah
Fortis Receives EU11.2 Billion Rescue From Benelux Governments

This makes me a bit wobbly, Fortis is IBs clearing and custodial bank in Oz.

Not saying run just getting a little close to home.

I thought you were the champion of IB's safety.

Anyway... it means Fortis as far as I'm aware, is safe........... for now.

 

[Macquack]

In light of the above discussion. How much money is guaranteed by the federal govt. (or RBA) in case a bank does go under? 20,000?

No guarantees.

" Australia is one of only two countries, the other is New Zealand, in the 30-member OECD that does not have an explicit government guarantee over depositors' funds with banks."
The Australian
March 28, 2008

Bank customers would be guaranteed to quickly recover $20,000 of their deposits if their bank collapsed under a plan before the federal Government to retain confidence in the nation's financial system.

They had better hurry up before it is too late.

 

[refined silver]

Another one bites the dust!

Citigroup buy Wachovia. Wachovia's share price drops 91% in pre-mkt trading, after also falling heavily last week.

The UK mortage lender B&B was bought by a Spanish bank heavily involved in mortgage securities and the Spanish real estate mkt is the worst in Europe!

Broke banks buying broke banks and then it looks like the govt is bailing less of them out!!

 

[mayk]

Macquack

Well that is not reassuring! What about the RBA bonds? Are they guaranteed by the Govt?