Has Next UK Financial Crisis Just Started? Bank Accounts Being Frozen

By: Nadeem_Walayat

This is how the next banking crisis starts - Customers day starts normally with little warning in the mainstream media about banking access issues, but customers trying to transact online find their accounts are no longer able to transfer funds out of their bank, instead are met with a message to call the bank, so begin tweeting about their limited online facilities.

Or worse customers find that their online accounts have been completely blocked and are again asked to call the bank.

Phone calls that will result in requests for customers to visit their local branch with ID where they will be met by long queues of other customers experiencing similar difficulties of either being frozen out of their bank accounts or unable to withdraw funds.

So after waiting patiently in a queue customers are taken into a cubicle where they are processed for the next 20 minutes or so until told your account is now free from any bars and you can go on your merry way, unless your interested in our latest and brightest financial product.

However, when the customer gets home and tries to access their account they find that their account access is still blocked, so perhaps leave it a day or 2 in case there is a delay, however that has no effect, the account remains frozen.

So customers again call the bank and are met with a similar response to the first time of being requested to visit a branch and present ID as customers find themselves stuck in an endless loop that leads nowhere. And that is how the next financial / banking crisis will happen. And guess what it is already happening TODAY! At least at the Halifax!

The Lloyds banking group that includes the Halifax as a consequences of the banking collapse 10 years ago has been demonstrating account access glitches all yeas, freezing hundreds of thousands of customers out of their bank accounts unable to withdraw funds, apparently due to a 'glitch' which is the technical term the banking industry uses for a banking crisis.

The bottom line is the Brexit chaos is putting Britain's banks under severe stress where the likes of the Lloyds / Halifax banking group are destined to repeat history where the slide that began 10 years has yet to hit bottom!

So take this as a warning that a new financial crisis is brewing in Britain's big banks and that it is not safe for customers to have only one current account as the risks of banks in crisis holding onto customer funds is high. Therefore the first task for bank customers is to open a second current account, even if it is largely kept dormant in case the current crisis worsens with many hundreds of thousands once more finding themselves frozen out of day to day banking.

Furthermore Halifax customers with funds in excess of £85,000 FCA protection should with immediate effect seek to transfer their funds out of the Halifax even if it means going into a branch in person and instructing the bank staff to do so given that they may be prevented from doing so online even after visiting the bank so as to ensure their hard earned savings remain protected should the UK be about to experience another banking crisis focused on the likes of the Halifax.

And remember that Halifax remains part of LLoyds Group courtesy of the shotgun wedding of September 2008, so the max £85k protection is for all accounts held with the Halifax, Lloyds Bank and Bank of Scotland.

More info here of what to do if your bank is refusing to let go of your money https://www.fscs.org.uk/

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Nadeem Walayat has over 30 years experience of trading derivatives, portfolio management and analysing the financial markets, including one of few who both anticipated and Beat the 1987 Crash. Nadeem's forward looking analysis focuses on UK inflation, economy, interest rates and housing market. He is the author of five ebook's in the The Inflation Mega-Trend and Stocks Stealth Bull Market series that can be downloaded for Free.

Nadeem is the Editor of The Market Oracle, a FREE Daily Financial Markets Analysis & Forecasting online publication that presents in-depth analysis from over 1000 experienced analysts on a range of views of the probable direction of the financial markets, thus enabling our readers to arrive at an informed opinion on future market direction. http://www.marketoracle.co.uk

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