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Icesave Latest News
JohnnyW_3
Posts: 29 Forumite
STOP PRESS. Updated 17.30 Tue 7 Oct. Icesave temporarily stops withdrawals.
Icesave is reported to have gone into technical receivership, meaning its assets have been taken over by the Icelandic government and it has effectively been nationalised (like Northern Rock was), see this FT article.
While the bank has stopped withdrawals, that doesn’t mean it is now bust, though at best its probably a 50-50 likelihood. Here are the crucial points.
Icesave is reported to have gone into technical receivership, meaning its assets have been taken over by the Icelandic government and it has effectively been nationalised (like Northern Rock was), see this FT article.
While the bank has stopped withdrawals, that doesn’t mean it is now bust, though at best its probably a 50-50 likelihood. Here are the crucial points.
- The bank is still operational.
- No compensation arrangements have been triggered (this only happens if the bank isn’t still operational).
- If compensation arrangements are triggered it will therefore have been after the new £50,000 level introduced today.
- All UK savers are thus protected up to £50,000 per person in Icesave (£100,000 for joint accounts).
- The first €20,000 (this may’ve been upped to €50,000 on some reports of a European meeting today) will come from the Icelandic compensation scheme.
- If a claim were needed, it will probably involve filling out just one form to the FSCS, you would not have to write to Iceland.
- If you have money in a cash ISA, whether you would be able to keep the ISA status isn’t yet clear. However after Northern Rock, the government ensured all ISA savers kept their status, even those who’d withdrawn money, so it is very likely.
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Comments
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Banks fully opperational? I think not since I'm still not able to withdraw money.Savings
£14,200 with £1100 M.I.A. presumed dead.0 -
1. It's only people in the UK who can't withdraw money.
2. "Operational" means that everyone's assets haven't been frozen and the bank hasn't gone bankrupt.0 -
This is exactly what we need, FACTS, not speculation or opinions.
If you cannot read the article, here is another link.
http://www.ft.com/cms/s/0/34681bc8-944d-11dd-953e-000077b07658.html0 -
It's a load of !!!! that they're stopping us from withdrawing.
I get it, it's to stop a full blown run. But I wasn't going to withdraw anyway, but I sure as hell am now. The second they let me, my moneys out of there.
All they've done is make sure a run happens, but now they can actually know on what exact day it's going to happen.
All they have to do is let us withdraw again.Savings
£14,200 with £1100 M.I.A. presumed dead.0 -
But I wasn't going to withdraw anyway, but I sure as hell am now. The second they let me, my moneys out of there.
Same here... and I think everyone will so even if it doesnt go bust now, I'm sure it will once they let people withdraw their cash from their ISAS...Current Debt Owed To Family: [STRIKE]£12,575[/STRIKE] £9,000 :wall:Estimated Debt Free... [STRIKE]Dec 2012[/STRIKE] Aug 2012
:xmassmileChristmas 2010 Sealed Pot Challenge #477 :xmassmile0 -
Hey folks,
Thanks for posting this. It has actually been updated even further now, with the really important bit in bold
STOP PRESS. Updated 17.30 Tue 7 Oct. Icesave temporarily stops withdrawals.
Icesave is reported to have gone into technical receivership, meaning its assets have been taken over by the Icelandic government and it has effectively been nationalised (like Northern Rock was), see this FT article.
We’re constantly speaking to Icesave, the Treasury and the FSCS to monitor the situation. All updates will appear here and be included in the free weekly email.
While the bank has stopped withdrawals, that doesn’t mean it is now bust, though at best its probably a 50-50 likelihood. Here are the crucial points.
- The bank is still operational.
- No compensation arrangements have been triggered (this only happens if the bank isn’t still operational).
- If compensation arrangements are triggered it will therefore have been after the new £50,000 level introduced today.
- All UK savers are thus protected up to £50,000 per person in Icesave (£100,000 for joint accounts).
- The first €20,000 (this may’ve been upped to €50,000 on some reports of a European meeting today) will come from the Icelandic compensation scheme.
- If a claim were needed, it will probably involve filling out just one form to the FSCS, you would not have to write to Iceland.
- If you have money in a cash ISA, whether you would be able to keep the ISA status isn’t yet clear. However after Northern Rock, the government ensured all ISA savers kept their status, even those who’d withdrawn money, so it is very likely.
We spoke to the Treasury this morning about whether, in the very unlikely event of the Icelandic scheme not being able to cover its obligation of the first, would it step in and make sure UK savers were covered for the whole £50,000?
Late this afternoon it finally called to say "The UK government is working with the Icelandic government to protect UK savings up to £50,000", and we're hoping for more soon. We interpret this to mean that over and above that level, it's up to the Icelandic government
However, there is no FINAL answer, discussions are ongoing and this article will be updated as soon as anything further is decided. For more info, read my full blog.Former MSE team member0 -
There is no recovery, if they can and allow it, every brittish penny will be withdrawn, they've ensured this with the way it's progressed today.0
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If Gordon Brown gets my money back, I'll vote for him.Savings
£14,200 with £1100 M.I.A. presumed dead.0 -
The below is taken from http://fscs.org.uk/consumer/
Hope it helps - looks like a good site to keep an eye on.
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Important Announcements
FSCS gears up to assist Icesave's UK branch customers
In the light of the current uncertainties, the Financial Services Compensation Scheme (FSCS) is today gearing up in case it needs to assist approximately 300,000 savers at Icesave.
Icesave is the UK branch of Landsbanki Islands hf (trading here under the registered name Icesave). It is an EEA bank that is authorised by the Fj!rm!laeftirlitið (FME), the financial services regulator in Iceland. The Financial Services Authority in the UK has reported that Icesave is now expected to go into insolvency proceedings in Iceland and this would trigger an FSCS default.
Eligible savers with Icesave are protected by the Icelandic Depositors' and Investors' Guarantee Fund (IDIGF), up to a limit of the first 20,887 euros of their deposits. As an Icelandic bank Icesave is not automatically a member of the FSCS, but it opted to become a 'top-up' member. This means that eligible retail savers with Icesave's UK branch whose savings exceed the Icelandic limit would benefit from top-up compensation from the FSCS covering the amount over the Icelandic limit up to the new FSCS compensation limit for deposits of £50,000.
If the default is triggered as expected, FSCS will contact all UK savers directly with details of how to apply for compensation. Further announcements will follow and we will keep this page updated.
Please watch our website for more information or call our helpline on 0845 7300131.
Please note that due to higher than usual demand it may take us longer to answer your calls and emails. We apologise for any inconvenience this may cause.
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