Author Topic: Bank Holiday Sales?  (Read 3678 times)

Jason the Maverick

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Bank Holiday Sales?
« on: May 25, 2008, 04:44:59 PM »
Has anybody noticed at how many Bank Holiday sales there are in the UK tomorrow?

Obviously the Credit Crunch is biting hard.

Offline en830

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Re: Bank Holiday Sales?
« Reply #1 on: May 25, 2008, 09:11:42 PM »
Strange observation, I don't think Jersey has any banks of its own they're all subsidiaries of International groups, so therefore for the branch to "go down" I would expect the group as a whole to be in difficulties. So far I can think of two which have had difficulties one was nationalised the other bought out, so no one lost out other than the shareholders.

As for the big UK banks, they're all announcing fat profits despite their exposure to the sub prime problems in the US.
You can't get good chinese takeout in China and cuban cigars are rationed in Cuba. That's all you need to know about communism

Offline en830

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Re: Bank Holiday Sales?
« Reply #2 on: May 25, 2008, 10:25:11 PM »
Jersey branches of uk banks are free standing are they not?
If this is the case then if a Jersey branch fails why would it get support from the uk branch?
Also can you tell me how much money in a Jersey bank account is guarenteed in the event of failure?
Is it up to £35,000 like in the uk or is it lower?

A UK bank is not going to let a high net-worth subsidiary collapse, it would be tander-mount to suicide for the group as a whole.
You can't get good chinese takeout in China and cuban cigars are rationed in Cuba. That's all you need to know about communism

Offline danrok

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Re: Bank Holiday Sales?
« Reply #3 on: May 25, 2008, 11:18:53 PM »
Jersey banks are local companies with local directors.

Offline en830

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Re: Bank Holiday Sales?
« Reply #4 on: May 26, 2008, 12:06:51 AM »
They maybe local companies as in their management and control is in Jersey, but I bet if you check their annual returns you will find that they are wholly owned subsidiaries of the the parent Group company.
You can't get good chinese takeout in China and cuban cigars are rationed in Cuba. That's all you need to know about communism

Offline en830

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Re: Bank Holiday Sales?
« Reply #5 on: May 26, 2008, 12:11:51 AM »
Are you saying that everybank account  in Jersey is protected up to the tune of £35,000 in the event of failure like in the uk?

Are you saying that HSBC, Lloyds TSB, RBSI, Barclays etc.... Would just turn their backs on their Jersey subsidiary if it got into (highly unlikely) difficulties. Some how I think the several thousand international investors who have funds invested in these banks would look on this, and the group as a whole, with a very dim view.
You can't get good chinese takeout in China and cuban cigars are rationed in Cuba. That's all you need to know about communism

Offline Deputy Dawg

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Re: Bank Holiday Sales?
« Reply #6 on: May 26, 2008, 01:00:31 AM »
All Jersey Banks are required by legislation to provide among other things a liquidity report as specified by the JFSC to the JFSC on a monthly basis and to report should the daily changes to the liquidity report show any variance above or below a very strict differencial, after which the JFSC would be reviewing on site the liquidity.

The liquidity report basically shows the inflow and outflow of a bank split by debits and credits and to which areas. This gives a trend of money movement and covers the liquidity of the bank (ie its ability to pay back it creditors) from today to 10+ years. this not only gives a good indication of a banks viability to the JFSC and Treasury department of the bank, but along with other reports also produced for the JFSC will allow the ALCO committee to decide on the direction of a banks future growth and the riskiness of its decisions which are also reported to the JFSC.

However, in addition to this, most group companies of local banks will have a contract to underwrite the local bank (cover any debts) and this will also be known by the JFSC.

Offline Tory Boy

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Re: Bank Holiday Sales?
« Reply #7 on: May 26, 2008, 04:44:15 PM »
Could some kind person in finance answer the question:-
Are bank accounts in Jersey covered up to the sum of £35,000 as in the uk.
A simple yes or no will be sufficient.
If they aren't why aren't they?

No.

But Somebody has already mentioned the requirement for liquidity which is insurance. 

Jason the Maverick

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Offline newmac

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Re: Bank Holiday Sales?
« Reply #9 on: May 26, 2008, 07:08:29 PM »
Going back to the original post, there's always been a lot of Bank holiday sales in the UK, it's the same old adverts all the time.