Revealed: Day the UK banks were just three hours from collapse (creditors, borrow)

[Woof]

Revealed: Day the banks were just three hours from collapse

By Glen Owen
Last updated at 11:21 PM on 24th January 2009

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Narrow escape: The Bank of England was forced to contact RBS's creditors abroad to persuade them not to withdraw their funds


Britain was just three hours away from going bust last year after a secret run on the banks, one of Gordon Brown's Ministers has revealed.
City Minister Paul Myners disclosed that on Friday, October 10, the country was 'very close' to a complete banking collapse after 'major depositors' attempted to withdraw their money en masse.

The Mail on Sunday has been told that the Treasury was preparing for the banks to shut their doors to all customers, terminate electronic transfers and even block hole-in-the-wall cash withdrawals.

Only frantic behind-the-scenes efforts averted financial meltdown.
If the moves had failed, Mr Brown would have been forced to announce that the Government was nationalising the entire financial system and guaranteeing all deposits. ......... (remainder of article at Revealed: The day the banks were just three hours from collapse | Mail Online# )

[evilnewbie]

And yet there are people out there that don't want to hear bad news.... its time that people know how bad it really is... but the kicker, it was expected to happen and could of been prevented... but all the handouts in the last several decades wouldn't stop and people wouldn't let it...

[chet everett]

The whole reason for the supposed "run" was irrationality, which is only fostered by stupid comments.

Honestly you'd have have to Uncle Billy to really believe that a mass withdrawal is a smart thing to do.

To borrow from Frank Capra: "The money's not here. Your money's in Joe's house; that's right next to yours. And in the Kennedy house, and Mrs. Macklin's house, and a hundred others. Why, you're lending them the money to build, and then, they're going to pay it back to you as best they can. Now what are you going to do? Foreclose on them?...Now wait...now listen...now listen to me. I beg of you not to do this thing."