Kaupthing Edge, Should I Avoid?

papolo

Prosymna wrote: »

[delurk]

Looks like Kaupthing is at very serious risk of default:

http://ftalphaville.ft.com/blog/2008/10/03/16633/how-do-you-say-this-sucker-is-going-down-in-icelandic/

Obviously savings with them up to £35k are covered by the FSCS, but like other people here I'm not keen to be a guinea pig, so have moved my money out.

I'm not trying to be alarmist but there is potential for serious hassle here for Kaupthing savers if the worst happens.

[relurk]

Yes, you are an alarmist, haven't you read the comment made by the bank, there is notting to worry about.

papolo

Oblivion wrote: »

What exactly did you not understand about my comments regarding the Novation clause? The FSCS guarantee applies to Kaupthing Edge's presence in the UK, but if they decide to novate all your savings to the 'mother-bank' in Iceland, which as far as I can see is not registered with the FSA, what happens to your FSCS guarantee then, eh?

Dave.

Dave here is the answer


http://www.kaupthingedge.co.uk/help/Faqs.aspx?id=03

13. I see in the terms and conditions that my deposit might, in the future, be with Kaupthing Bank, and not Kaupthing Singer & Friedlander Ltd. What would this mean for me?

We have no intention of moving your deposit to Kaupthing Bank, and though in the unlikely event that we were to do so, we would give you at least 30 days notification.

If this did happen you would remain a Kaupthing Edge customer and your account number, details and call centre contacts would not change. Your money would remain safe, and protected up to exactly the same amount as the UK Financial Services Compensation Scheme (which currently pays up to £35,000). The only material difference to you, would be the structure of the compensation itself, which would be provided by two schemes (sometimes referred to as a passport scheme):

* The first level of protection is provided under the Icelandic Depositors’ and Investors’ Guarantee Fund. The maximum protection under this scheme is 100% of the first €20,887 (or the sterling equivalent) of your total deposits held with us.

* The second level of protection is provided by the UK Financial Services Compensation Scheme. This scheme "tops-up" your protection so that the protection under both schemes is equal to 100% of the first £35,000 of your total deposits held with us.

* Under EU law compensation for any losses incurred due to the failure of a bank should be paid within three months - regardless of whether it is through a passport scheme or the UK Financial Services Compensation Scheme.

Oblivion

papolo wrote: »

Dave here is the answer


http://www.kaupthingedge.co.uk/help/Faqs.aspx?id=03

13. I see in the terms and conditions that my deposit might, in the future, be with Kaupthing Bank, and not Kaupthing Singer & Friedlander Ltd. What would this mean for me?

We have no intention of moving your deposit to Kaupthing Bank, and though in the unlikely event that we were to do so, we would give you at least 30 days notification.

Thanks for that. I couldn't see that 30 days notice quoted in the official Terms & Conditions that you have to agree to every time you log in to your account. Perhaps I've just overlooked it since it is a very long document. It's all very well having it in the FAQ, but that isn't a legal contract like the T&Cs is, and the road to bankruptcy is paved with good intentions.

Dave.

p.s. Do you work for Kaupthing? I notice you've only joined MSE in the last couple of days, and every one of your seven posts so far has been in support of KE.

papolo

Oblivion wrote: »

Thanks for that. I couldn't see that 30 days notice quoted in the official Terms & Conditions that you have to agree to every time you log in to your account. Perhaps I've just overlooked it since it is a very long document. It's all very well having it in the FAQ, but that isn't a legal contract like the T&Cs is, and the road to bankruptcy is paved with good intentions.

Dave.

p.s. Do you work for Kaupthing? I notice you've only joined MSE in the last couple of days, and every one of your seven posts so far has been in support of KE.

No, i do not work for Kaupthing Edge, i am just sick and tried of people deliberately speading untrue rumors about Kaupthing Edge so that be a RUN on the bank.

genny

papolo wrote: »

No, i do not work for Kaupthing Edge, i am just sick and tried of people deliberately speading untrue rumors about Kaupthing Edge so that be a RUN on the bank.

In total agreement.

coolio_2

papolo wrote: »

No, i do not work for Kaupthing Edge, i am just sick and tried of people deliberately speading untrue rumors about Kaupthing Edge so that be a RUN on the bank.

Untrue? So they haven't had their ratings changed?

Andrew64

Another gloomy story here about Kaupthing:

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/3128392/Kaupthing-fears-grow-over-financial-strength.html

home_alone

Prosymna wrote: »

[delurk]

Looks like Kaupthing is at very serious risk of default:

http://ftalphaville.ft.com/blog/2008/10/03/16633/how-do-you-say-this-sucker-is-going-down-in-icelandic/

Obviously savings with them up to £35k are covered by the FSCS, but like other people here I'm not keen to be a guinea pig, so have moved my money out.

I'm not trying to be alarmist but there is potential for serious hassle here for Kaupthing savers if the worst happens.

[relurk]

The whole lot is as it says on the intro whispers and rumours, boy just what we need right now.

gary

LucyTheDwarf

Tell it often enough, and the worst will happen.

prudryden

papolo wrote: »

Yes, you are an alarmist, haven't you read the comment made by the bank, there is notting to worry about.

Isn't that what FORTIS said two days before the Belgium authorities and others had to bail them out?

The report is that the Credit Default Swaps (CDS) of Kaup has gone through 2500bp - that is huge in any language and something to be concerned about.