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Irish government guarantee bank deposits

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Stavros_3
Stavros_3 Posts: 1,288 Forumite
in Savings & investments
Looks like they are closing the stable door before the horses bolt. Wonder if Gordy will play follow my leader, doubt it somehow

http://www.hemscott.com/news/static/tfn/item.do?newsId=67476084246400
Liquidity is when you look at your investment portfolio and **** your pants
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Comments

  • occamsrazor
    occamsrazor Posts: 232 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    Original article here:
    http://www.reuters.com/article/bondsNews/idUSLU10363120080930
    More info here:
    http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aGywJhwA3qfE
    http://www.iht.com/articles/ap/2008/09/30/business/EU-Ireland-Bank-Guarantee.php

    That's pretty amazing... guaranteeing ALL bank deposits in those institutions... Coupled with the rise earlier this week in depositor protection to 100k euros (is this now redundant?) it seems banks such as Anglo-Irish are becoming more attractive.

    I'd like to know details of the deal first though.
  • opinions4u
    opinions4u Posts: 19,411 Forumite
    Failure of the British government to do the same will see depositers moving their savings to Irish banks with UK operations.

    This could further shake an already wobbly deck.
  • wayne42
    wayne42 Posts: 45 Forumite
    We have money in Anglo Irish IOM (about 68k). Just phoned them and they say that the cash is covered by the Irish Gov.. I questioned this as banks in IOM are covered by the islands compensation scheme..They tried to reassure me that the Irish gov guarantee will cover Anglo Irish and its subsidiaries.
    Are they correct with this advice?
  • gozomark
    gozomark Posts: 2,069 Forumite
    wayne - the announcement says all deposits held with the 6 banks, not just deposits in Ireland with the 6 banks - I'm sure the staff in IOM branch have been told the situation, and told exactly what to say to customers
  • wayne42
    wayne42 Posts: 45 Forumite
    gozomark wrote: »
    wayne - the announcement says all deposits held with the 6 banks, not just deposits in Ireland with the 6 banks - I'm sure the staff in IOM branch have been told the situation, and told exactly what to say to customers

    Thanks for the reply gozomark. :T
    I hope you are right. I just find the current situation very confusing and just wish they would clarify everything on their web site.
    If they did then I would not be considering moving even more cash to other accounts..In fact I would have left the original lump sum there in the first place!!
    BTW..I did do a search on this forum before asking but found mostly different views to a similar question.
  • gozomark
    gozomark Posts: 2,069 Forumite
    wayne - can you put a link to the different views you read ?
  • gozomark
    gozomark Posts: 2,069 Forumite
    here is the official statement from the Irish Government

    http://www.taoiseach.gov.ie/index.asp?locID=586&docID=4026

    the devil is in the detail

    "The Government has decided to put in place with immediate effect a guarantee arrangement to safeguard all deposits....with the following banks: Allied Irish Bank, Bank of Ireland, Anglo Irish Bank, Irish Life and Permanent, Irish Nationwide Building Society and the Educational Building Society and such specific subsidiaries as may be approved by Government following consultation with the Central Bank and the Financial Regulator"

    from AIB (IOM) website:
    "Anglo Irish Bank Corporation (I.O.M.) P.L.C. is a wholly owned subsidiary of Anglo Irish Bank Corporation plc."

    so need reassurance AIB (IOM) is approved
  • SilverScooby
    SilverScooby Posts: 197 Forumite
    well spotted gozomark.

    I see the bbc's news item says "The department said that the scheme would cover all UK branches of the financial institutions, but that negotiations were under way with the British authorities on safeguards that might be provided to any of the six banks' subsidiary companies in the UK."

    So looks like Allied Irish bank (which in UK is a wholly owned subsidiary) awaits confirmation.

    I haven't checked all the other 5 yet, but Anglo Irish Bank in the UK (as opposed to IOM) states "Anglo Irish Bank Corporation plc is authorised by the Financial Regulator in Ireland and by the Financial Services Authority; regulated by the Financial Services Authority for the conduct of UK business" so it looks like it comes in the first category so is covered?
  • gozomark
    gozomark Posts: 2,069 Forumite
    as you say, the IOM isn't in the UK
  • mpooley
    mpooley Posts: 16 Forumite
    what the hell is that?

    I looked at the bank of ireland and they quote their rates in ear%

    how does that compare with AER?

    thanks

    Mike
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