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    What the hell is up with Malta here? I'd have thought with all the capital-light money laundering they'd be pretty high on the list.



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      It may be that the laundering class has seized effective control of the banks, and is more interested in their laundering services than in maximising the banks' profits and taking "clean" money out that way. That could also be the case if their effective control isn't matched by economic interests in the banks (due to legal restrictions, "optics", etc). Cyprus is also lower than I would expect, likely for similar reasons.

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        Having a giant mountain of NPLs, and having been subject to massive recapitalisation, doesn't tend to help ROE. They probably pay a fair amount for deposits too.

        Malta doesn't really have a (disclosed) NPL problem, so that can't be it for them.

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          StanChart fined $1.1bn for AML failures, including a 100m fine from the FCA.

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            Will Liverpool wear supportive t-shirts against Porto?

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              Monzo finally figures out how to make money from their customers.. Not sure they'll be happy about it though.

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                Cost of deposits during the quarter was 70bps, in line with expectations. The increase of 3bps from Q4 2018 and 9bps since Q3 2018 remains materially lower than the 25bps Bank of England base rate increase in August 2018.
                Not really the sort of thing you'd expect a bank whose entire pitch is being customer friendly to be boasting about.

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                  So, is Metro the first bank run caused by social media scaremongering? Probably not, globally, but I can't think of any others that didn't have more substance to the underlying situation.

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                    Rather reminds me of the runs on banks that catered to Chinese immigrants in San Francisco and New York. Rather similar rumours (though the focus there was deposit accounts, not safe deposit boxes), only the mode of transmission was more old school.



                    Does the UK deposit insurance scheme cover items other than cash in safe deposit boxes? I would think that there would be major valuation issues.
                    Last edited by ursus arctos; 13-05-2019, 20:30.

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                      I don't think things in safety deposit boxes are covered at all. If a bank went bust the administrators would have no rights to the items contained within as they're not deposits per se.
                      I would assume there is some insurance policy involved in case of flooding/fire etc.

                      In fact, here is some info...
                      from the Financial Ombudsman
                      Last edited by hobbes; 13-05-2019, 18:51.

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                        Yeah, I don't think cash is covered at all. They're not deposits, it's just custody. Any raiding/commingling by the bank would literally be theft.
                        Last edited by Ginger Yellow; 13-05-2019, 20:25.

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                          That makes perfect sense and is the rule here.

                          Which makes the fact that the bank invoked the protection of deposit insurance to punters concerned about their safe deposit boxes not a particularly good look for the bank.

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                            Metro is definitely ruling the not a good look roost at the moment.

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                              Though I assume the invocation of deposit insurance was aimed at people withdrawing actual deposits, given that they would have an actual impact on its liquidity.

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                                https://twitter.com/WillFitzgibbon/status/1128672864578756608

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                                  Just an absolutely brutal story

                                  [URL]https://twitter.com/jasondhorowitz/status/1130062843594911744?s=21[/URL]

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                                    Yeah - as covered with Cohen previously, it is a really dark and horrible business. Surprised that Capital One's name popped up, though Signature Bank had huge losses on that book last year.

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