What Chance Another Bank Bailout ?

[Canary42]

Hundreds of folk left destitute by bank failure. Will the adverse publcicity persuade the Government to bail them out with Taxpayers' money ?

It's a possibility surely ?

https://www.bbc.co.uk/news/business-47679192

[spathiphyllum]

They deserve their money back. Somethign seriously wrong hre. I remember when i was slightly younger people queueing at the banks to withdraw all of their money because they were worried the banks would close.

government needs to crack down on the banks. Maybe there are just too many?

We need to follow Icelands footsteps and sentence corrupt bankers to prison.

[gingejbee]

Bank failure? It wasn't a bank...it was a mini-bonds company.

[douglas9401]

If something looks too good to be true.........

[THECORBYLOON]

It's not a bank so no worries about the banks collapsing. They were selling an un-regulated product so folk were taking risks in the hopes of good returns.

Unfortunately, they have paid the price for a lack of awareness.

[gingejbee]

Yes, douglas....a little research before handing over the cash, would have set alarm bells ringing. It had changed names 5 times in three years!

[Baldric]

Bank? . . . my 'arris!

https://www.bbc.co.uk/news/uk-england-47454328

[naomi24]

Points for trying Canary .... and spath.

[hereIam]

I feel sorry for them, but I'd never put my money in anything like this !

[-Talbot-]

Have you posted the wrong link, Canary?

Or is it your usual ...I've got a headline and I'm going to use it even if I don't understand it?

[Deskdiary]

Not a bank.

Those that invested with the dubious promise of unrealistic interest returns will simply become unsecured creditors. No different to any other commercial enterprise going tits up.

A classic case of caveat emptor.

It is incredibly sad for those that entrusted their money, but even some cursory due diligence should have set the alarm bells ringing.

[Muntin]

They thought they were going to get an 8% return. So the bond issuers were going to get, what, 10% to make a profit. Why would any company borrow at 10% when there is money to be had at, say, 4%.? But the advertising for this Ponzi scheme should not have been allowed.

[fiction-factory]

Yes, wrong link or wrong end of the stick.
People will fall for scams. Any investment offering 8% or so per annum should set alarm bells ringing instantly. This story has been on Money Box for a few weeks now. Even the companies they claimed they were providing loans to have started to go default and suprise surprise the same director's name pops up in the bond company and the companies theywere lending to

[Gromit]

It isn’t a bank.
It was an investment product, and it didn’t work out. Are you going to refund every punter that puts his/her money on an horse that finishes last?
At best, if there has been criminality (which seems likely) the scum behind the scheme will go to prison.

[gingejbee]

Although I pointed out that it wasn't a "bank failure" just nine minutes after the original post, there has been no comment from the perpetrator of the mis-information....

[fiction-factory]

The only issue that gives us some sympathy for the investors in this case was that there have been some suggestions (and I can't remember the details) that the regulator was slow to respond to warnings or didn't spot that the ads were claiming the products were approved. But if a return of 8% pa doesn't make you think twice and do some extra checks before investing tens of thousands of pounds then these sorts of scams will continue

[Ellipsis]

Moneybox were saying that 8% is borderline, not obvious scam territory, last time I heard this case on there.

Where is the money? £236m invested, 20% recovered in "at least" two years. Where's the rest? OK fair enough that the investments didn't make 8%, but losing 80%? Where's that £189M gone?

[Peter Pedant]

yes or no
8 % in three years locked in - 2 point something
still more than twice bank rate
BUT bonds are not short term

soooo not obvious scam territory
but hey I have made a few crip investments - can I rely on the govt to bail me out every time?
Golly I hope so ....

[fiction-factory]

8% pa I thought, PP- anything over 4% pa would set my alarm bells ringing unless it was respected brand.
Ellipsis- I recall a lot of money was paid in fees including to a rogue 'best buy' comparison site. And I am pretty sure the money was syphoned off by the conmen and hopefully some will be recovered but probably not much

[Peter Pedant]

the ad reads 8% over three years
and is usually not read as 8% pa for 3 y - that is an obvious scambo

savings accounts are usually really crap 0.5%

[EDDIE51]

The problem is that it is NOT A BANK !!! it is an Investment Company ! There is a LOT of difference ! There is NO reason the Government would bail them out , any more than they bail out any other failed company ! It is a classic case of 'let the buyer beware! 'It would not even be legally possible to 'bail them out'!