Iceland

tonytsdiver

After reading the article in the Times today http://!!!!!!/y3kW6 I decided to call it a day with Icesave. Would you really want the hassle and wait for your money back ? The Country has 15 % interest rates with inflation to match.Just a gut feeling. It's only a matter of time.

Money_Grabber13579

tonytsdiver wrote: »

After reading the article in the Times today http://!!!!!!/y3kW6 I decided to call it a day with Icesave. Would you really want the hassle and wait for your money back ? The Country has 15 % interest rates with inflation to match.Just a gut feeling. It's only a matter of time.

And yet more scaremongering.:mad:

Dave_®f©

I'm usually easy come, easy go but I'm beginning to poop my pants a bit with holding a large sum with Kaupthing Edge. I just think my cash MAY be a bit safer in a UK bank in that the Government would step in to safeguard the deposits.

Worrying times indeed! Still holding out though.....

FEARS GROW OVER ICELANDIC BANKS 30/09/08

tonytsdiver

Money_Grabber13579 wrote: »

And yet more scaremongering.:mad:

I'll be back to make you eat humble pie or I'll hold my hand up:o either way 'Don't panic Mr Manwearing' !

Money_Grabber13579

Dave_®f© wrote: »

I'm usually easy come, easy go but I'm beginning to poop my pants a bit with holding a large sum with Kaupthing Edge. I just think my cash MAY be a bit safer in a UK bank in that the Government would step in to safeguard the deposits.

Worrying times indeed! Still holding out though.....

FEARS GROW OVER ICELANDIC BANKS 30/09/08

Let's think about this rationally now shall we? If the Iclandic government stepped in with its 3rd largest bank before it went bust, is it not kind of obvious what they would do for the largest and 2nd largest? (Icesave and KE) No government with any sense of respect will let a bank go bust that directly affects consumers, so in that regards, your money is as safe in Iceland as in UK.

What I'm worried about is all these posters causing a run on the bank and it'll join the list of other unnecessary nationalisations. (HBOS, B&B)

Dave_®f©

Money_Grabber13579 wrote: »

Let's think about this rationally now shall we? If the Iclandic government stepped in with its 3rd largest bank before it went bust, is it not kind of obvious what they would do for the largest and 2nd largest? (Icesave and KE) No government with any sense of respect will let a bank go bust that directly affects consumers, so in that regards, your money is as safe in Iceland as in UK.

What I'm worried about is all these posters causing a run on the bank and it'll join the list of other unnecessary nationalisations. (HBOS, B&B)

I'm still holding out and not running to move my dosh....still doesn't stop me pooping my pants though! And I'll be watching the news like a hawk for warning signs that Kaupthing may be in the dodo.

ianmr65

Sighs...

tonytsdiver wrote: »

After reading the article in the Times today http://!!!!!!/y3kW6 .

This was written in april.

Dave_®f© wrote: »

.

FEARS GROW OVER ICELANDIC BANKS 30/09/08

The main thrust of the article in the notoriously biased daily mail group website, is that the CDS spread on the icelandic banks has widened, again.

The CDS on the Country of Ireland has just widened to 60 points from 30. That means it costs you £6000 to insure against a £1,000,000 loan by the irish goverment!! This implies that the CDS market thinks it's now twice as likey that Ireland may go bankrupt- All of it - than yesterday

the CDS market is an unregulated, and un-monitored basket case. None other than Ben Bernake the chairmain of the US federal reserve has called for it to be regulated, and brought under goverment control. The primary reason that AIG went down was their [AIG's] inability to assess exposure in the billons of dollars worth of counter-party CDS trades, that they were covering.

Oh and a last little nugget from the article...
"When investment bank Morgan Stanley revealed Kaupthing's borrowing costs had increased....." And goes on to yalk about Morgans view of Kaupthings likelyhood to default (go bust)...

Last time I looked Morgan Stanley don't exist any more... And Kaupthing are going strong.

====================================================================

In terms of what I think we should focus on.

FSCS compenstaion- Covered more adequately by other posters

How able is a goverment to secure it's banking infrastructure. In terms of decisiveness, and ability.

The Icelandic goverment took a day or two to nationalise a bank in trouble. (One with a very low depositor base, and which was always struggling to get funding)

The Uk goverement has taken 6 months for one. (Northern Rock) And has fudged the second, (B&B). And is currently having emergency meetings about a 3rd HBOS.. Which if the share price falls any further may well not be bought by Lloyds. And then what. Nationalisation? Not with an asset base that size, ir won't - so if the Lloyds deal dosen't come off - HBOS is toast!!

How likely is a bank / building socity with little exposure to sub-prime, nor toxic derivatives, and a large depositor base likely to be bought lock stock and barrel, by a competitor hungry for cheap money, if it gets into liquidity trouble?

The Derbyshire, Cheshire, and B&B deposit base should give you a clue.

How much do you think, that given the current funding cataclysim, UK based banks would love to see Offshore banks go to the wall so deposits would flow back to them?

You can make up your own minds about that one!

edwinac_2

This from EIRNS...

An American Crisis? European Anglo-Dutch Banking System Collapses

September 30, 2008 (LPAC)-- The European Anglo-Dutch banking system is collapsing at breakneck speed. The news of the failure of the U.S. House of Representatives to pass the "cash for trash" bailout plan of Treasury Secretary Hank Paulson sent shock waves through European markets, where all money market lending is freezing up--as in the U.S.--and the ECB is desperately pumping liquidity to see what they can keep afloat. The British pound lost 3 cents to the dollar, the largest drop in 15 years.

The Franco-Belgian Dexia bank, France's and Belgium's main lender to local, regional and state governments, was given an urgent 6.4 billion Euros (9.2 billion dollars) capital injection early this morning, to stop it from going belly up. Dexia is facing serious losses from FSA, its U.S.-based monoliner, which lost 20% in trading on Monday. Of the FSA's total exposure of $17.3 billion, $7.6 billion are subprime-based unsellable mortgage-backed securities (MBS). The bailout came from the Belgian, Luxembourg and French governments. France ponied up nearly half, 3 billion Euros, including 1 billion from the French government and 2 billion from the French co-owner of the bank, the public Caisse des Depots et des Consignations (CDC).

The Irish Banking system, which has served as a City of London offshore banking center, is also on the verge of imploding, with bank shares collapsing on Monday an average of 26 percent. The Anglo-Irish Bank, the country's third largest, led the way with a 44 percent drop, according to the Daily Telegraph. In anticipation of this implosion, the Irish government announced it will guarantee Irish Bank deposits and debts for two years. This will cover the country's major banks, including Allied Irish Bank, Bank of Ireland, Anglo Irish Bank, Irish Life and Permanent, Irish Nationwide building society and Educational Building Society. It's safe to assume that all of them are in trouble.

It should be noted that the 26.5 billion Euro (about $40 billion) bailout of Hypo Real Estate by the German government will not be going to that bank's Munich headquarters, but to DEPFA, its Dublin, Ireland based subsidiary, where most of their toxic waste is housed. This is headline news in the mass circulation German daily Bildzeitung, as well as other dailies which report that the government bailout accounts for no less than 10 percent the FY 2008 budget.

Another big story today is the government of Iceland's takeover of Glitnir bank with a 600 million Euro (about $1 billion) bailout. This is in a tiny country whose only exports are wool sweaters, but which has become what the Guardian calls a "toxic hedge fund for British and Scandinavian banks." The Glitnir collapse follows the fact that its chief shareholder, Stodir, just filed for bankruptcy. The latter has been up to its ears in deals in London, including the take-over of retailer House of Fraser and Hamley's owner Baugir.

ianmr65

nilrem wrote: »

Just what I was thinking, as you say; people should feel confident that the Icelandic Government took this action to protect savers.

Well not quite, Glitner hasn't actualy got a retail deposit arm, (this was part of the problem) or not much of one, so no savers as such. But i agree withe the gist of what you are saying.

And the Iceland does have a major export. Energy. They are throwing up geothermal powerstations, at breakneck speed, and will become a major player in the energy stakes.

casper_uk

Money_Grabber13579 wrote: »

Let's think about this rationally now shall we? If the Iclandic government stepped in with its 3rd largest bank before it went bust, is it not kind of obvious what they would do for the largest and 2nd largest? (Icesave and KE) No government with any sense of respect will let a bank go bust that directly affects consumers, so in that regards, your money is as safe in Iceland as in UK.

What I'm worried about is all these posters causing a run on the bank and it'll join the list of other unnecessary nationalisations. (HBOS, B&B)

Yes but surely a good solid bank should have enough funds available to pay back all depositers? Any bank that can't pay out is surely using a bad business model that only works when times are good?