Many European banks are now in distress. Be it in Germany,Netherlands or UK. Govts. in Europe are coming forward to bailout them but they have to face the consequences of American bubble bust.
At present the crises in US have snaked the banking sectors. All banks not only in europe are coming forward to bailout. They facing he consequences of the US. Beause US being the largest import and exporter all the import and export business at present in the US has stopped.
Not in Ireland by the looks of it though.
Quote from http://news.bbc.co.uk/2/hi/business/7646217.stm
They have not to worry, the US Tax payer is going to bail them out.
When I saw this thread what came to my mind first was European banks following Americans around---like stalking them. Then I realized, oh! This person is talking about the bank failures in Europe.
Then I got to thinking what a funny image that was--people being stalked by banks--It's kind of how people feel right now. Like, don't walk down a dark street alone... Your bank might mug you! They need the money! LOL!
I never heard of the banks in Europe failing with ours
There has been all hell to pay in the UK in the last few weeks.
The first banking failure was Northern Rock in September 2007. That was a building society which turned into a bank, and borrowed lots of money cheaply on short-term deals and lent it out, mostly in mortgages, on long-term deals. Then credit became harder to get and more expensive, and they went bust. The government nationalised Northern Rock about this time last year.
The Abbey National, another ex Building Society turned into a bank, found itself in choppy seas and was bought by Santander, a Spanish bank.
In early September, the Nationwide Building Society took over two smaller building socities which were in trouble, the Derbyshire Building Society and the Cheshire Building Society.
Then the Bradford and Bingley, yet another ex Building Society turned into a bank, also got into serious trouble a few weeks ago, and was also nationalised. They specialised in "buy-to-let" mortgages, and also had a contract to buy billions of pounds worth of toxic mortgage paper from GMAC. They weren't technically insolvent, but their share price had gone through the floor. In December 2006 it agreed to buy up to £12bn worth of mortgages, spread over the next three years, from GMAC, the finance arm of General Motors that specialised in buy-to-let mortgages, the B&B's own favourite type of loan.
A few months later it bought a further £2bn of loans from another lender, Kensington, to be spread over two years. These too were buy-to-let mortgages, as well as "prime self-certificated" loans.
People in all the above didn't lose or face losing any money. People who had loans / mortgages with them continued to pay them.
Then, this week, a lot of us had a rude awakening. Icesave, a British subsidary of an Icelandic bank, Landsbanki, went into receivership. We were then told that, although we were guaranteed under the deposit scheme for amounts between £16,000 and £50,000 by the British Financial Services Compensation Scheme (FSCS), the first £16k would have to be claimed via the FSCS from Iceland. That was a problem, because there are 350,000 British savers who have savings with Icesave, and that's about the total number of Icelandic citizens. It appeared we would lose our £16k (my other half and I have £35,000 of savings with Icesave).
However, today Alistair Darling, the Chancellor of the Exchequer, said that the UK government would pay out to Icesave depositers, and argue about it with the Icelandic authorities later.
We live in interesting times!
@ London Girl - I was under the impression that ING had taken over £3billion from the Icelandic bank owner Landsbanki (which is Kaupthing Edge and Heritable Bank) Is the government still helping out the Icebank?
Money in the UK is all messed up, it feels like its been going on for years! (although i know its only been a year or so)
I wish Gordan Brown had done his job properly when he was at number 11, instead of working, he sat back and was made to look amazing by all our hard work!
Can some one focus more on European bank failures?
Country by country?
More info is needed because it is the question of many one's livelihood. They may loose money saved in lifetime for their retirement or so.
True it really is sad atm for a lot of people.
It depends on how much you have saved, the British government is protecting saving sup to £50,000 ($100,000) at the moment.
Its pretty hard on everyone, but we are seeing some good finally happen. We've seen a big hike in the price of food recently (Something stupid like 11% in a year!) but according to yesterdays papers, that's set to drop a little soon, and I also liked the look of the petrol pumps yesterday, cheapest petrol for over a year! (I could not get any more in my tank!)
It is really bad news for all the persons investing their hard earned money in this market.
Currently, most governments are trying to make people see that confidence in the banking system can be restored.They are looking for a rescue strategy for banks battered by the worst financial crisis since the 1930s, under intense pressure to throw them a lifeline before world markets reopen.
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