Lebanese Banks

Quote from the bouch:



Keep in mind Lebanon is a very small country with very limited resources and should the banks fail they will not have the means to save them. Banks are safe till they aren't, ask Indy Mac investors and depositors.




Hey,

Some very close friends of mine who are quite wealthy have all their cash in these lebanese banks in US dollars. They have them in simple savings accounts that aren't even locked in. They are getting something like 6% return being in US dollars. I dont get it. They swear that its a super safe banking system bla bla bla. But it makes no sense to me. I've done a little researching and spoke to some people in the know, but I haven't gotten any satisfactory answers. Are there people here in the rate space who know how they do this and what the risks are?
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The Lebanese pound is pegged to the US dollar. A Lebanese pound bank account pays 6% interest.

Lebanese banks are regarded as safe because not a single one went bust or lost money during the entire civil war period.
 
Quote from Ash1972:

Cyprus was considered safer, much wealthier, no Cypriot bank had gone under during 1974, further more they are a member of EU and look what has happened to them.

The Lebanese pound is pegged to the US dollar. A Lebanese pound bank account pays 6% interest.

Lebanese banks are regarded as safe because not a single one went bust or lost money during the entire civil war period.
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--Cyprus was considered safer, much wealthier, no Cypriot bank had gone under during 1974, further more they are a member of EU and look what has happened to them. ---

+1..pretty pretty good example. i mean-if one can spread the wealth(Barry O quote) and diversify to the hilt-yeah..maybe..you gain here,lose there. but having it all in couple banks,in one piece of s** country,chasing couple more % points-suicidal.
and this is precisely why i'm keeping my money in US. if shit hits the fan-well.. so be it. at least-I'm not going to dive alone..there is will be much more shit on every corner in the rest of the world. in fact-the world would swim in it. with US once again likely flow on the top
 
Only reason people would think that a Lebanese bank is safe is that they have a sufficiently large deposit and a good senior BoD or Management connection to make sure that if/when the bank goes bust they will get the "courtesy call" ahead of time provided they can pay the right price and the bank gets their money out...

if you are a joe blow depositor in one of these banks and especially a foreigner, good luck! Look at BCCI that was in the UAE, local depositors got 100%, expats, which are a majority of the population got a shaft, obviously the UAE has grown and changed since then, 1YR deposit rates are barely 2% at mid tier banks, Lebanon is obviously different
 
Quote from Ash1972:

The Lebanese pound is pegged to the US dollar. A Lebanese pound bank account pays 6% interest.

Lebanese banks are regarded as safe because not a single one went bust or lost money during the entire civil war period.
More...

Lebanese banks are regarded as safe. Which is not the same thing as being safe :)
 
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