What's wrong with Metro now?

#1

Saw some terrible news headlines about Metro. What Andy in this LinkedIn post commented reminded me of how Metro called itself the new bank several years ago before companies like Monzo and Revolut were even founded.

https://www.linkedin.com/feed/news/metro-bank-boss-to-skip-huge-bonus-4969722/

Does make me wonder if any of the challenger bank may repeat Metro’s fate in future… Hope NOT !

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What's happening with Metro Bank?
False rumours about Metro bank
(NM) #2

Metro did have some rather big accountancy issues so I wouldn’t expect anything different

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(Jamie 🏳️‍🌈) #3

Kinda crazy that anyone thinks branch banking is the future, when the Big Five can’t get rid of them quick enough.

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(Caspar) #4

Looks like “fake news” stories being forwarded around over WhatsApp are causing issues for Metro, with long queues for customers coming in to withdraw their cash and empty safety deposit boxes.

https://www.theguardian.com/business/2019/may/12/metro-bank-quashes-false-rumours-of-financial-instability-

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(Andrew Turvey ) #5

Let’s be clear - one photograph about one safe deposit box queue in one branch.

(Starling Guru) #6

Typical plonkers on social media followed by inept ‘journalists’

Side note I did see on Bloomberg the other day hey are looking to sell 1bil in debts, couldn’t see story anywhere though.

EDIT:

Also funny how this guy made the account specifically to tweet them and it shows in the article :eyes:

(Michael) #7

Not the first time this sort of thing has happened I see:

(Michael) #8

I wonder who is behind the rumour

Probably impossible to ever track it back, but one could be cynical and I would not be surprised if they come calling for a FinTech bank soon

Were it just a member of the public it would end there, but presumably this would be against some sort law or rule if started by someone with a vested financial interest?

#9

Not the first time this sort of thing has happened I see:

It also happened to the Dawes, Tomes, Mousely, Grubbs Fidelity Fiduciary Bank :upside_down_face:

Pretty moronic to empty a safety deposit box because the bank is having liquidity problems, though.

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#10

That’s terrible if there are false rumours going around. I don’t condone that at all. However, to be devil’s advocate here, in order to avoid rumours spreading about your bank’s solvency and trustworthiness you need to show that 1) you are good at managing the customers’ deposits and 2) you need to display solid financial foundations.

  1. Metro is fresh from an accounting scandal which saw them “mis-classify” riskier loans as safer ones. They are meant to be the answer to the 2008 fallout and this suggests otherwise. It also calls into question what else has been getting “mis-classified”.

  2. Their financial foundations have crumbled. Where a year ago they were approaching a £4bn valuation, hitting marginal profitability and on the up, they have slumped to a £500m valuation, future profitability in extreme doubt, branch rollout plans in doubt, whole business model in doubt and with them about to raise over £300m on such a low valuation it is only common sense to question whether their business is even viable.

They have announced themselves that many big customers (think ‘over 85k’ where they are not protected from Metro going bankrupt) have pulled their business and gone elsewhere.

So what are they going to be left with? … @danny jamming up the coin machine with his coppers and people just turning up for the free dog biscuits.

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#11

What’s the story here with Metro?

(Simon B) #13

Reputation is a hard thing to fix… Best of luck to Metro.

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#14

Will be very difficult to recover from this, true. Perhaps there is a market for a friendly bank with some branches but they don’t seem to be it.

(Michael) #15

Some/most of the damage they did to themselves, but I must say I am very suspicious about the spreading of rumours - feels a bit like a pile on

(Nick) #16

Indeed. Fair enough if you’re over the FSCS limit and you’re taking out money to bring your account down to under that. But being encouraged to take everything out seems beyond the pale to me - and a self-fulfilling prophecy.

It’s hard enough for Metro to avoid a negative feedback loop without the scaremongering on top of everything else.

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(Caspar) #17

Weird, his screenshot in another tweet (a reply to a journalist) shows a link to BBC News with a .com URL, which only works if you open the page from outside the UK. If the sender had shared the link from inside the UK, their browser would have send them to bbc.co.uk. Makes me suspicious this is a set up by someone in another country.

(Starling Guru) #18

I also like this tweet

i won’t be responding to further questions”, seems a bit weird to say that if you are a ‘normal’ person not used to that kinda thing.

Defo a setup I reckon

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#19

Plus opened account may 2019

(Michael) #20

This follow up comment (not from me) communicating some of my thoughts on the matter:

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(NM) #21

I think the 80 percent share drop(across a year)
is what is causing more problems