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How is this happening? Wasn’t the UK bank meant to have a separate balance sheet per regulations?
Probably their UK customers aren't taking them at face value and being precautious and thus causing another cascading bank run in the UK unrelated branch (same name, still, which would make it possible)

problem is if monday this shit show ain't fixed and this spreads to any other smaller banks in the us left

The Bank of England is seeking an insolvency procedure [1] which I figure implies there’s a problem with the UK balance sheet beyond short term issues with liquidity

[1] https://www.reuters.com/business/finance/bank-england-puts-u...

I think they would choose this method to wind it down independent of whether it will ultimately be able to pay out everything. A Bank in the UK being run by the FDIC is probably not what they want.
Isn't that the case that when a HQ of a company/parent company files for bankruptcy, then all UK and EU branches must also immidietly close?
I can't wait for the movie of this whole situation, assuming we still have a society capable of making Hollywood films.
It could be a movie..

Govt funds a bio-research center. Virus escapes and infects population. Govt locks country down, works with companies and media to stop non-compliance. This forces people out of work, while forcing an untested chemical serum on others. Eventually leading to economic instability around the world creating rapid and inflation. To combat inflation, the govt dramatically increased interest rates. This eases inflation, but perpetuates instability. The end of the movie end Las showing cities on fire and populations walking out of the cities and into the countryside..

FADE IN:

EXT. BIO-RESEARCH CENTER - DAY

A sleek, modern building stands in the middle of a bustling city. A sign reads "Bio-Research Center: Advancing Medicine, Advancing Life".

CUT TO:

INT. BIO-RESEARCH CENTER - LAB ROOM - DAY

Scientists in white coats and goggles hover over petri dishes, pipettes in hand. A virus is being examined in a lab. One of the scientists makes a mistake and the virus escapes, infecting everyone in the lab.

CUT TO:

EXT. CITY STREETS - DAY

People on the streets start to show symptoms of the virus - coughing, fever, and difficulty breathing. Panic sets in as the virus spreads rapidly throughout the population.

CUT TO:

INT. GOVERNMENT OFFICE - DAY

The government declares a state of emergency and orders a lockdown of the entire country. Companies are forced to shut down and people are told to stay home. The government works with the media to stop non-compliance.

CUT TO:

INT. HOSPITAL - DAY

Doctors and nurses are working tirelessly to try and find a cure. They come up with a chemical serum that they believe will cure the virus. However, it is untested.

CUT TO:

EXT. CITY STREETS - DAY

The government forces people to take the serum, causing outrage and protests. Meanwhile, those who refuse are left without work or support.

CUT TO:

INT. GOVERNMENT OFFICE - DAY

To combat inflation caused by the economic instability, the government dramatically increases interest rates. This eases inflation, but perpetuates instability.

CUT TO:

EXT. CITY STREETS - DAY

Cities are on fire and populations are walking out of the cities and into the countryside, seeking a better life.

FADE OUT:

THE END.