Iceland nationalises Glitnir bank

chucknorris

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!

It's people like you who spread fear around, that is not constructive

talana

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!

Apply that advice to your own posts too. Or indeed do tell us what part of your first post was constructive and helpful to others.

formulaonefan

Paul_Herring wrote: »

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.

stevetodd wrote: »

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 that would just be something an idiotic loser would do

chucknorris wrote: »

It's people like you who spread fear around, that is not constructive

talana wrote: »

Apply that advice to your own posts too. Or indeed do tell us what part of your first post was constructive and helpful to others.

Here is a response for all of your quotes. My post wasn't scaremongering! or all doom & gloom! My post is suppose to trigger the following:

1. What happens to my savings if Kaupthing Edge goes bust?
Ans. You are covered by FSA up to 35K

So the next question that should follow is:

So who do I approach?
What forms do I fill?
What evidence do I need to provide?
How long will it take to get my money back?
What happens if it takes atleast a year or two to get my money back?
Everything happens over the internet. Do I have up to date documents to prove my latest balance?

Those are the questions we should be asking ourself and be prepared. I have my life savings with Kaupthing Edge and at times I'm afraid and worried. So I want to be prepared. Bad news will be a knock-out punch if you are not prepared. If you are prepared you can take the punch and still stand up!

So to think and prepare for the worst is scaremongering! Then I don't know what to say! And when I post such a serious question and get a response like run in underpants in town centre shouting "doom-gloom" is in my opinion plain stupid.

It is painful times and the best we can do is anticipate and look at options. One don't have to panic! or be paranoid about it. Prepare!

Debt_Free_Chick

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!

Whilst it's only right to look at the risk you have as a saver, we ought to note that no retail bank has yet "gone bust" leading to a claim on the FSCS. For the benefit of others, there has not (yet) been a run on the FSCS

nicko33

formulaonefan wrote: »

don't give me FSA 35K stuff.

ah, so by that you meant that you did want to know about the 35k depositor protection scheme.
No wonder some people got the wrong idea...

GeorgeHowell

I took out all the money I had in foreign based banks some months ago. Sure I've lost out on a bit of interest, but better safe than sorry. Regardless of the compensation arrangements at home and abroad, I reckon that getting back one's money could prove to be a nightmare if one of these organisations goes down, and I can do without the sleepless nights.

Whilst it's only right to look at the risk you have as a saver, we ought to note that no retail bank has yet "gone bust" leading to a claim on the FSCS. For the benefit of others, there has not (yet) been a run on the FSCS [\quote]

My understanding is the deposits in B&B are in fact to be compensated by the FSCS, albeit via a Bank of England loan in the short term. The FSCS will be reimbursed up to a maximum of that amount, from the net proceeds of B&B assets (mortages etc) and wholesale money market debts. The likelihood is that the FSCS, ie the banks, will not be compensated in full by these means, and will therefore have to stump up for the B&B losses. HMG is underwriting the whole thing, but we must assume that the big banks will not be able to show huge profits in the future whilst failing to meet their FSCS obligations. Hopefully they are between a rock (no pun intended) an a hard place in this respect. This is why banking shares and therefore the FTSE 100 have plummeted today -- the realisation that the game is up and the days of huge profits (and hopefully huge bonuses and packages) are a thing of the past for the foreseeable future.

Paul_Herring

formulaonefan wrote: »

Here is a response for all of your quotes. My post wasn't scaremongering! or all doom & gloom!

I beg to differ

My post is suppose to trigger the following:

1. What happens to my savings if Kaupthing Edge goes bust?

Persistently harping on, and on, and on, and on, and on, and on, and on, and on, and on, and on, about "what happens if bank $X goes bust?" is scaremongering/doom and gloom.

Here's some more doom and gloom for you. And it's more constructive, and probably closer to what the reality will be:

======
If it gets to the point where a substantial bank goes bust such that people will be relying on the FSCS (as opposed to a bank being bought by the tax-payer/another bank - c.f. NR/B&B and HBOS) then society will already have broken down, and all the FSCS could give you would be worthless bits of paper with the queens head on it.
======


But since you ask, a brief visit to the FSCS website could have answered all your questions: http://www.fscs.org.uk/consumer/how_to_claim/deposits/

If you have a claim against a bank or building society

If you have an account with a bank or building society that becomes insolvent you will be contacted by the liquidator or by FSCS. You will need to fill in an application form that we will send to you.

From 1 October 2007, FSCS can pay compensation for financial loss of up to £35,000 for deposit claims (which is 100% of the first £35,000) if a deposit-taking firm (such as a bank or building society) is unable to pay back deposits it owes to its members. For claims against deposit-taking firms declared in default before 1 October 2007, the maximum level of compensation is £31,700 (100% of £2,000 and 90% of the next £33,000).

Amounts owed to a failed bank (for example loans, mortgage or credit card debts) are taken into account before any compensation is paid.

If you think that you have a claim but are not contacted, or if you are worried about what is happening with your claim, please contact us.

http://www.fscs.org.uk/consumer/FAQs/Deposit_claims_FAQs/

6. How long will it take to process my claim?

After a declaration of default, FSCS aims to process all claims within six months. However, the time this takes depends very much on the type of claim. For example, most credit union claims can be completed within four weeks. For other types of claim it may take longer, depending on how complex it is and on some factors that may be outside of our control, such as waiting for information from third parties.

Happy now?

YorkshireBoy

formulaonefan wrote: »

So the next question that should follow is:

So who do I approach?
What forms do I fill?
What evidence do I need to provide?
How long will it take to get my money back?

All of which are answered on the FSCS (note, not the FSA) website...a link to which is provided in every deposit taker's literature/T&C's.

What happens if it takes atleast a year or two to get my money back?

You have to manage without the money. If that is an issue, then spread your money around for a bit more peace of mind.

Everything happens over the internet. Do I have up to date documents to prove my latest balance?

Yes thanks.

I have my life savings with Kaupthing Edge and at times I'm afraid and worried.

Then why haven't you spread it around a bit. There are many accounts paying 6.5% AER, so it's not necessary to keep it all with the one institution.

So I want to be prepared.

It is painful times and the best we can do is anticipate and look at options. One don't have to panic! or be paranoid about it. Prepare!

It sounds like you should follow your own advice because, and I'll say it again, having your "life savings" with one institution is a bad move for somebody of your nervous disposition.

tradetime

My understanding is the deposits in B&B are in fact to be compensated by the FSCS, albeit via a Bank of England loan in the short term.

My understanding was that Banco Santander now own all of B&B deposits along with their branches, but I confess I have not followed the story closely.
Your's truly, Joe Taxpayer got the mortgage book, can't help feeling we got short changed there. But as I say, I haven't read all the details yet.

Debt_Free_Chick

GeorgeHowell wrote: »

My understanding is the deposits in B&B are in fact to be compensated by the FSCS, albeit via a Bank of England loan in the short term.

Technically, yes. I understand that once B&B failed the FSA test for a bank, then a claim on the FSCS was automatically triggered - but then the Government stepped in. I understand that no money will flow out of the FSCS unless B&B's loan book fails to recoup sufficient to repay the loan and even then, the other banks will have to put money IN to the FSCS.

It rather sounds as though the Government has done a deal that bypasses the FSCS - but the end result is the same with any ultimate cost to be met by the (remainder of the) banking industry.

We agree and I think my point was that the FSCS will be "no worse off" due to B&B and in the same position as it would have been, had the claim not been made.