6 ms·

Not sure why this is being down-voted as it is essentially true. Large banks do have bugs, and sometimes even admit it. [0][1] The fractional reserve system b

by AndyJ1972 13y ago

Not sure why this is being down-voted as it is essentially true. Large banks do have bugs, and sometimes even admit it. [0][1] The fractional reserve system basically means if there is a problem, you need to be the first at the counter. If you are not, you will only get a certain amount of money back. [0] http://www.telegraph.co.uk/finance/2737388/Bug-crunches-Halifax-mortgage-numbers.html http://www.telegraph.co.uk/finance/2737388/Bug-crunches-Hali... [1] http://www.independent.co.uk/news/uk/home-news/lloyds-banking-systems-failure-hits-22m-retail-customers-8199975.html http://www.independent.co.uk/news/uk/home-news/lloyds-bankin... Edit to add: (But not quite the same as the one above) http://www.dailymail.co.uk/news/article-2426519/Gang-arrested-1-3million-Barclays-hijack-plot-carbon-copy-Santander-scam.html http://www.dailymail.co.uk/news/article-2426519/Gang-arreste... http://article.wn.com/view/2012/06/26/Lloyds_TSB_computer_glitch_delays_mortgage_customers_complet/ http://article.wn.com/view/2012/06/26/Lloyds_TSB_computer_gl...

JumpCrisscross 13y ago
>The fractional reserve system basically means if there is a problem, you need to be the first at the counter. If you are not, you will only get a certain amount of money back. In any system with deposit or investor insurance, e.g. the United States, you will get back the full insured amount (up to $250 000 for bank deposits, $500 000 for investor funds). Beyond that you will be treated as the senior creditor that, as a depositor or investor, you are. If you want more certainty as to the return of your capital, buy Treasuries.
AndyJ1972 13y ago
Thanks for that info JumpCrissCross. I probably should have mentioned I am in the UK. You get back up to £170k here ($280k) but I guess my point still stands :-) Edit: (Oh, that's for a married couple by the way. £85k if you're single.)

JumpCrisscross 13y ago

>The fractional reserve system basically means if there is a problem, you need to be the first at the counter. If you are not, you will only get a certain amount of money back. In any system with deposit or investor insurance, e.g. the United States, you will get back the full insured amount (up to $250 000 for bank deposits, $500 000 for investor funds). Beyond that you will be treated as the senior creditor that, as a depositor or investor, you are. If you want more certainty as to the return of your capital, buy Treasuries.

AndyJ1972 13y ago

Thanks for that info JumpCrissCross. I probably should have mentioned I am in the UK. You get back up to £170k here ($280k) but I guess my point still stands :-) Edit: (Oh, that's for a married couple by the way. £85k if you're single.)