Another Iceland & Icesave Bash.

planemad

It seems that one of the newspapers is churning up the Iceland and Icesave story again.
Look quite recycled to me from previous reports a few months back.

These are the sort of reports that make people withdraw their money causing the said bank problems.

http://www.mailonsunday.co.uk/home/frame-money.html

The whole financial system is in turmoil over most of the world so why are they picking on Iceland when we have problems ourself with our banking institutions.

Steve_xx

These banks are all licensed to take monies from UK depositors. Therefore they come under the FSCS. However, I have noted that in order to claim the maximum of 35k from a failed foreign bank that, with some notable exceptions, you must first claim on the relevant country's compensation scheme and that compensation, if necessary would be topped up by the UK scheme.

I don't think that Icelandic banks are especially under scrutiny, nor are they being scrutinised in isolation. It just seems that way to us in the UK because we tend to get news of what's happening there due to the fact that so many UK savers have deposits in Icelandic banks. Many of the UK based banks have suffered hard at the hands of the stock market in recent months and they will continue to suffer for some while yet I think.

Savers can then apply to the FSCS for top-up compensation where needed. For example, a saver with £35,000 in a failed Irish bank would have to apply to reclaim £15,800 from Ireland's compensation scheme and the remainder from the FSCS. In the case of Icesave, if its parent bank Landsbanki failed, UK savers would have to apply first to the Icelandic scheme for the first £16,500.
There are exceptions, including Spanish-owned Abbey and Icelandic-owned Heritable Bank and Kaupthing Edge, which have full cover in the UK under the FSCS. All foreign-owned banks operating in the UK that are outside the EEA, such as Indian-owned ICICI and Nigerian-owned First Save, are fully authorised by the FSA so UK savers have the £35,000 cover.

luckylizard

this is an awful, lazy piece of journalism. the first 3 paragraphs are so amateur it's almost funny. there's nothing to stand them up in the entire article and there's also not a single piece of 'news' in the entire article. it's the editor's job to throw stories like this in the bin.

remember, these sites/newspapers have to have a story every day, so if there isn't one, they'll just regurgitate an old one using some reaction to something that hasn't happened. foreign banks are just a soft target. ignore it.

planemad

Steve_xx wrote: »

I don't think that Icelandic banks are especially under scrutiny,

First paragraph: Iceland's major banks are facing growing concerns over the risk that they might run into difficulties.

ManAtHome

planemad wrote: »

First paragraph: Iceland's major banks are facing growing concerns over the risk that they might run into difficulties.

Yes, but the "growing concerns" have now been running at least 3 years and just seem to pop up every couple of months. Normally a cut&paste from the previous round - only "effort" put ino the reporting is to dig up a new face who is "concerned"...

Steve_xx

planemad wrote: »

First paragraph: Iceland's major banks are facing growing concerns over the risk that they might run into difficulties.

Icelandic banks are in the news, UK Banks are in the news and US banks are in the news. There is a worlwide shortage of cash as far as the banks are concerned.

It says that Icelandic banks "might" run into difficulties whereas the UK and US are in actual difficulty.

Paul_Herring

It's The Mail. Hardly a paragon of accurate, unbiased and up-to-date reporting.