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Kaupthing Edge+Rubbish bank
Comments
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LongTermLurker wrote: »Thanks, Jake'sGran, for identifying their excellent level of customer service; you couldn't ask for much more than that, could you? :T Most of the big banks wouldn't have responded like that.
I'm really impressed with KE's level of service - they're a breath of fresh air and I'd readily recommend friends look at them. As to the earlier post about the mis-informed FA, that wasn't Halifax was it? Sounds a lot like the poster who said "I went into Halifax and told them I was moving my money to Kaupthing Edge. The assistant told me she wouldn't recommend that as she'd heard they were Nigerian and in a lot of financial difficulties" :rotfl:
Yes, you are right! I was very impressed and am leaving my money where it is as a result of the service. I couldn't have just let it go and hope for the best, not my way in any event.;) Time to lighten up now.!0 -
Another happy and fully satisfied customer here. I can't fault them so far.
The other big plus for me is that interests is paid at the end of the month unlike other accounts that pays interests on anniversary of account opening. Psycologically it boasts once confidence in knowing that your savings pot is growing.0 -
what a ridiculous KE bashing thread - you'll find 99% of people here very happy with them.
"99% of people here are very happy with them" ?!?!?
What sort of measure is that? You sound like an advert for Colgate toothpaste!
This isn't a question of customer satisfaction but of finding financial security in deeply turbulent times, as the global economy collapses like a house of cards.
For what it's worth, the three main credit rating agencies - Moody's, Fitch Ratings and S&P - have all issued stark warnings about the financial stability of the Icelandic banking sector.
The Icelandic banks have a "loan to deposit ratio that is still 300 per cent, which shows their dependence on the wholesale markets to start with,” said Paul Rawkins, senior director at Fitch...
The FT also reports:
You might dub it "scare-mongering", but others will call it "prudence"..."There have been fears that the [Icelandic] banks’ rapid domestic and international expansion, financed mainly with overseas borrowing, could undermine their strength as the cost of borrowing has risen during the credit crisis.These fears helped create a spike in credit default swap spreads to about 1,000 basis points, indicating the CDS market believed an [Icelandic] banking collapse was very likely.
The cost of insuring Icelandic bank debt against default climbed to near-record levels yesterday, as traders again targeted the embattled island economy.Credit default swaps, contracts between two parties to insure debt against default, hit 1,000 basis points on the major Icelandic banks Glitnir and Kaupthing.
This means traders were paying €1m per year to insure €10m of each bank's debt over five years, more than double the price two months ago. A year ago, they paid €30,000.
The last time prices - or spreads - on Iceland's banks reached such elevated levels was in March. Aware that many investors watch CDS as a gauge of credit risk, Geir Haarde, Iceland's prime minister, then embarked on a PR-drive to stress that the country's banks were liquid and well-capitalised.
He accused some hedge funds of deliberately pushing up CDS prices, and the central bank threatened retribution. Spreads fell back to less than 400bp by May, but have since been on the rise.
Landsbanki, the third of Iceland's banking trio, was trading at 635bp yesterday, up from 193bp two months ago.
Analysts said there were reasons to be nervous about the health of the country's large banks.
They used cheap foreign funding during the credit boom to expand rapidly, leaving them highly levered at a time of tightening credit conditions.
In addition, many investors fear Iceland's overheating economy is about to slip into recession.
The local currency has fallen 30 per cent this year and last month hit a record low against the euro.
CDS spreads above 1,000bp usually indicate traders think a company is very likely to default on its debt.
[...]
In spite of the growth in core income from lending, fees and commissions, there are signs the quality of the banks’ loan books is starting to deteriorate. Glitnir said the cost of bad loans rose to ISK4.5bn compared with ISK247m in the same period last year while at Landsbanki costs rose to ISK6.95bn (ISK1.5bn). At Kaupthing they increased to ISK5.6bn (ISK1.1bn).
[...]
Glitnir and Landsbanki declined to comment.
Kaupthing was unavailable for comment."If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks will deprive the people of all property until their children wake up homeless on the continent their fathers conquered."
-- Thomas Jefferson0 -
I've just opened an account, and it went more smoothly than any other bank/bs I have used.
Looking good, hopefully.0 -
You might dub it "scare-mongering", but others will call it "prudence"...
The difference between having £35k in Kaupthing compared with, say, Northern Rock, is currently just under £22 a month. That is what your prudence will cost in real terms.
We could sit here all night arguing about whether hedge funds have been targeting Kaupthing to push up its CDS rates for their own advantage, but even knowing that they had or they hadn't wouldn't get us anywhere.
If people know what the cost to feel secure is, they can decide for themselves where to put their cash. Up to £35k is safe, but interest will be lost if a bank goes bust, from the date that happens to the day the pay back is made.
I have 12x the amount of money I have in Kaupthing in a range of other institutions, but holding money in a wide spread of banks only shows how I deal with the idea of risk in these times. Others may have different strategies. I'm therefore not that worried about Kaupthing, Icesave, HBoS or any of them, individually.0 -
The difference between having £35k in Kaupthing compared with, say, Northern Rock, is currently just under £22 a month. That is what your prudence will cost in real terms.
Some will cherish prudence, while others thrive on greed!
Such is life's rich tapestry!We could sit here all night arguing about whether hedge funds have been targeting Kaupthing to push up its CDS rates for their own advantage, but even knowing that they had or they hadn't wouldn't get us anywhere.
According to the FT, the widening CDS spreads are only one of several indicators of the ill wind that is blowing right through the Icelandic banks.
The cost of bad debts at the banks has also soared. Between 2008 Q1 and Q2, the loan losses swelled 20 times, while Kaupthing has also seen its net profit slump 40 per cent over the same period. And the losses are getting worse.
As that old adage has it, "invest only what you can afford to lose"..."If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks will deprive the people of all property until their children wake up homeless on the continent their fathers conquered."
-- Thomas Jefferson0 -
How is putting money in a savings a/c "investing"?
what should we do, then put it under the mattress?0
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