Iceland nationalises Glitnir bank

formulaonefan

http://news.bbc.co.uk/1/hi/business/7641753.stm

could kaupthing edge be next? are we safe with our savings in kaupthing edge? don't give me FSA 35K stuff. Nobody here knows how long will it take for FSA to give our money back if kaupthing edge goes bust. Nobody!

altocumulus

At least Icesave have a message on their front page saying how strong they are ... and also not exposed to any of the recent collapses in the US....

stevetodd

formulaonefan wrote: »

http://news.bbc.co.uk/1/hi/business/7641753.stm

could kaupthing edge be next? are we safe with our savings in kaupthing edge? don't give me FSA 35K stuff. Nobody here knows how long will it take for FSA to give our money back if kaupthing edge goes bust. Nobody!

Have you tried running down the High Street in your underpants shouting "we are all dommed" that might help

formulaonefan

stevetodd wrote: »

Have you tried running down the High Street in your underpants shouting "we are all dommed" that might help

I would like to be prepared and help others in the process. If you don't want to post anything constructive then don't waste our time! What a loser and idiot!

occamsrazor

(Cross-posting from the "Iceland" thread now this one seems more appropriate)

I also just read the news about Glitnir's takeover with some concern. I've been very happy indeed with Kaupthing so far, but as a customer of their Isle of Man operation (with its less-than-fully-comforting compensation scheme) it does make me a bit nervous as I've more deposited than that covered by the scheme.

Can anyone insightful comment on what effect the continued fall in the Icelandic currency might have on Kaupthing? They seem also to have been taking large deposits in euros, sterling, dollars and generally seem less exposed to the sub-prime crisis, at least from what I've read, but am no expert.

The news last week that the Qatari Emir took a 5% stake in the company gave me some reassurance, but now I'm slightly less so.

All that said if I was with Kaupthing's UK operation and had less than 35K I wouldn't have these concerns...

Swipe

Something to bear in mind if you have a fixed bond with KE. Changes in their terms and conditions.:

*3.2 Novation
Kaupthing Singer & Friedlander Limited may, by notice to you, novate the contract between it and you
(comprising the Terms and Conditions) to Kaupthing Bank hf. This means that from the date of the notice to
you, all of Kaupthing Singer & Friedlander Limited’s rights and obligations to you will be transferred to Kaupthing
Bank hf, with whom you will have a contract comprising the Terms and Conditions. From that date, your rights
and obligations under the Terms and Conditions will be with Kaupthing Bank hf. Kaupthing Singer & Friedlander
Limited will notify you of that novation through one of the Communication Methods. You consent to that novation.

Kaupthing Bank hf is not covered by the FSCS.

*Taken from page 5 of http://www.kaupthingedge.co.uk/Includes/PDF/tandcs.pdf

luvpump

Thank you for your recent e-mail about compensation available from the Financial Services Compensation Scheme (FSCS) with regards to deposit accounts held with Kaupthing Edge.

Due to high number of enquires we are currently receiving we are unable to provide you with a personalised reply as quickly as we would like. However, we trust the information supplied below will clarify matters, about the level of protection that would be available from the FSCS.

The FSCS is a fund of last resort, which deals with claims for compensation against firms that have been declared insolvent. When a firm authorised by the Financial Services Authority (FSA) is unable to pay back the deposits that have been made, the FSCS can pay a maximum of £35,000 to each depositor.

This is calculated with reference to the value of a person’s total deposit with the relevant institution, regardless of the number of accounts a person has their money in. As far as joint accounts are concerned, each person is considered to own an equal share of the deposit in that account.

Therefore, where two people hold a joint account, each depositor may receive a maximum of £35,000 compensation in respect of the claim, giving a total of £70,000

Our understanding is Kaupthing Edge is a trading name of Kaupthing Bank hf., Kaupthing Singer & Friedlander Ltd, Kaupthing Singer and Friedlander (Isle Of Man) Limited. You would need to confirm with Kaupthing Edge which organisation your deposit is held within.

Depending on their advice I can confirm the potential protection for each bank as follows:

Kaupthing Bank hf is an authorised bank in Iceland and is a member of the Icelandic Depositor Guarantee Fund. Its UK operations are authorised by the FSA, and it pays a levy to the FSCS. However, as Kaupthing Bank hf is not a UK firm it does not come under the direct control of the FSA.

Were Kaupthing Bank hf to be declared insolvent, the Icelandic fund would pay compensation up to its limit of €20,000. If a depositor’s loss were higher than this, the FSCS would pay the remainder up to our limits, as outlined above.

Details of the Icelandic Depositor Guarantee Fund can be found on their website at http://www.tryggingarsjodur.is/

Kaupthing Singer & Friedlander Ltd is fully authorised by the FSA, therefore if they were to become insolvent FSCS would consider a claim for compensation in full, up to our maximum limit of £35,000.

Kaupthing Singer and Friedlander (Isle Of Man) Limited is licensed by the Isle of Man Financial Services Commission to conduct banking and investment business. Deposits held in the Isle of Man are not covered by the FSCS. Details of the Isle of Man Depositors Compensation Scheme can be found on their website at http://www.gov.im/fsc

I would ask you to note that the information provided in this e-mail should be considered a guide based on our understanding on the information you have provided and the rules we operate under. This e-mail is not to be considered to provide definitive answers in relation to your relationship with a financial service firm now or in the future

Any personal information you provide us with will be held by the Scheme in accordance with our data protection policy, which is available on our website or on request.

We are sorry that we have not been able to provide you with a personalised reply, but trust the above has proved useful. However, if you have any further questions please telephone us on 020 7892 7300. For up-to-date information please visit our website at www.fscs.org.uk

Customer Services Team
Financial Services Compensation Scheme

Reaper

This Isle of Man thing is something I don't understand. Why are any of you saving in an off shore account?

If you are UK taxpayers then you still have to pay tax on the earnings when you bring them in. And if you are not a tax payer then why not fill in an R85 and go with conventional Kaupthing and get a better rate?

Unless you are a non-UK citizen I struggle to think of a valid reason for having your savings there. Somebody please enlighten me.

Paul_Herring

formulaonefan wrote: »

I would like to be prepared and help others in the process. If you don't want to post anything constructive then don't waste our time!

I found his comment to be very constructive. Especially since you ruled out the only other constructive thing that could have been said in your first post.

occamsrazor

Reaper wrote: »

This Isle of Man thing is something I don't understand. Why are any of you saving in an off shore account?

If you are UK taxpayers then you still have to pay tax on the earnings when you bring them in. And if you are not a tax payer then why not fill in an R85 and go with conventional Kaupthing and get a better rate?

Unless you are a non-UK citizen I struggle to think of a valid reason for having your savings there. Somebody please enlighten me.

I would love to put all my savings in UK banks and get FSCS protection, but...

1. Almost no UK banks will open accounts for Non-UK residents these days - even if you are a British citizen and can provide ample identification, credit, and address information. There are no legal reasons for this, it's just the banks can't be bothered to deal with the minor additional administration for what represents a small percentage of their customers. So British expats have a very hard time indeed and are left with no choice but to put their savings in places like Isle of Man which offer lesser protection than UK-based accounts. Isle of Man branches of those same banks, however, are more than happy to deal with non-UK residents.

2. Those few UK banks that do offer accounts for non-UK residents generally offer poorer interest rates and often monthly charges.

3. UK banks that offer accounts in foreign currencies (euros, US dollars) are few and far between, and those that do offer such accounts generally give incredibly bad interest rates (often less than 1%). Almost all Isle of Man branches, however, offer foreign currency savings accounts and some like Kaupthing and Anglo-Irish offer extremely good rates for US dollars and euros.

There you have it....

Ben

stevetodd

formulaonefan wrote: »

I would like to be prepared and help others in the process. If you don't want to post anything constructive then don't waste our time! What a loser and idiot!

There isn't anything constructive about increasing the scaremongering about various banks. I actually have 33k (kept it just under 35k) in this bank and do not think you are helping me (or other savers with KE) with threads like this.

You don't know anything about me, nor I you, so I will not stoop to type insults about you as you did about me, as that would just be something an idiotic loser would do