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My banks regularly have bugs in their software, and regularly make mistakes. The mistakes are "on them". So what? At the end of the day I don't have access to

by jwr 13y ago

My banks regularly have bugs in their software, and regularly make mistakes. The mistakes are "on them". So what? At the end of the day I don't have access to my money, or I have to call their "customer support" and spend hours explaining the problem that they created. If the bank goes down completely (as in: goes bankrupt), my deposits are only guaranteed by the state up to a certain limit, which isn't that high. Regulation and "liability" buy me very little in real terms.

Jtsummers 13y ago
What sort of bugs have you seen in your bank? My money, at BoA (was several different banks before they got merged into that monstrosity) and later USAA has always been accessible to me. No debits against my account that didn't belong.
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.)

by jwr 13y ago

Jtsummers 13y ago

What sort of bugs have you seen in your bank? My money, at BoA (was several different banks before they got merged into that monstrosity) and later USAA has always been accessible to me. No debits against my account that didn't belong.

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.)