What is the probability of Bank of Scotland going bust?

move it

Allied Irish perhaps? Unfortunately everybody is playing this game and they are not answering their phones!

Also it takes 1-2 weeks to open up a corporate deposit account. By that time this will be over - one way or another.

IMHO there is no way that companies can lose their deposits. Most would be unable to pay wages, etc. If this happened, all banks would have to be nationalised.

Well, I was in the process of switching my business account to BOS. I'm seriously reconsidering now. There is risk that the deal with Lloyds won't go through, in which case I may end up banking with a non-existent bank if HBOS goes under, which wouldn't be good.

And even if the deal does go through, part of the motivation for switching to BOS was the generous interest rate they pay on credit balances. What are the chances that that will still be as generous this time next year if the merger goes ahead?

Am I missing anything?

Adam

Probability of of Bank of Scotland going bust? It has already happened, and it looks like Royal Bank of Scotland, Barclays and Lloyds may well follow tonight.

My view is, if you have your money in a large British bank with lots of branches, you should be fine, as the government will make sure all depositors keep their money.

If however, you have your money in a foreign owned internet bank such as Icesave, Kaupthing, ING, Egg or FirstSave, then you will get what you are entitled to under the terms of the relevent compensation scheme, and no more. If the relevent compensation scheme is in Iceland (eg Icesave, but not Kaupthing), then you might not get anything.