Kaupthing Edge, Should I Avoid?

Rafter

http://ftalphaville.ft.com/blog/2008/10/03/16644/the-news-from-iceland-thetta-er-buid/

At least their call centre and application processing is in the UK so somebody in the UK is in a job as a result of the explosion in overseas savings!

Heres a thought. Why not invest your savings in a UK institution that might help UK companies to grow and keep people in jobs, might provide mortgages to your children, families and neighbours rather than send it off to Iceland/ Nigeria/ Ireland/ wherever for a few pence more each month in interest?

Even if the FSCS scheme does protect your savings, the UK savings industry or government has to pick up the cost, so you will end up paying in the end through taxes or poor rates of interest in the future.

Ask yourself whether you would invest in a bank in Bristol that if it went bust would be bailed out by the Bristol town council and council tax payers with the UK government would eventually reclaim the rest from the UK savings industry and re-imburse you? That is the current situation with Kaupthing and Icesave because Iceland has a population of a small UK city like Bristol or Bury.

Remember too that the FSCS is limited to £1,840 million a year for retail deposits. Sounds like a lot, but Bradford & Bingley has put a big hole in that and there is loads more than that invested by UK savers in Iceland now.

R.

EalingSaver

sandspider2000 wrote: »

Just FYI, I just phoned Kaupthing. Everything there was normal, my call was answered quickly and helpfully. I asked how things were, and the woman said they were fine, just that a few people were phoning up to query the level of savings cover.

Really? After some of the more extreme stuff posted on here I'm suprised that you didn't find all the telephone lines to Iceland were down, Tsunami's had swept across the country, and they were all breaking into their emergency stores of salted herrings (if that is what they do with them). :rotfl:

Oblivion

Satscene wrote: »

So what more do you want???!

The complete removal of the Novation clause from Kaupthing Edge's terms and conditions.

Oblivion

Rafter wrote: »

Their customer service is good because it is provided by Newcastle Building Society. At least someone in the UK is in a job as a result of the explosion in overseas savings!

I am aware that Newcastle Building Society have provided UK administration services for Heritable Bank, Icesave, Bradford & Bingley (presumably soon to change), Bank of Ireland and FBN Bank, Firstsave, but I didn't think Kaupthing used this admirable service.

Had Kaupthing used Newcastle, I'm sure they wouldn't have had all the problems on their website with two categories of log-ins depending on when you joined for example.

Dave.

EalingSaver

Rafter wrote: »

Remember too that the FSCS is limited to £3billion a year. Sounds like a lot, but Bradford & Bingley has put a big hole in that and there is loads more than that invested by UK savers in Iceland now.

Everyone is entitled to their opinions. And you are entitled to your opinion that placing money in UK institutions is a more patriotic (to paraprhase) thing to do. However, posting things which are incorrect as if they are facts, especially in the current situation, is more dubious.

The FSCS is not limited, because it will funded by the government that will then recoup through future levies. and I believe the £3bn you mention refers to the (current) per year cap on those levies and is in fact £4bn (expect the arrangements may be altered whenever they announce the new limit on the guarantee). Either way the FSCS is underwritten by the government (i.e. taxpayer) not directly by the banks. They are just tapped in future for the money.

And in the case of B&B, and here I will point out I'm NOT entirely certain of the facts, I believe they covered this by making a loan to the banks to cover the FSCS comittments, on which the banks will pay interest, with the loan being 'paid off' as the nationalised mortgage book is drawn down (i.e. its assets are realised).

To paint the picutre that there is a limited £3bn pot which has been severely dented, and at the end of that pot there is no more cover is erroneous.

papolo

Oblivion wrote: »

The complete removal of the Novation clause from Kaupthing Edge's terms and conditions.

My friend, it is time to give up. you are just pushing it

Reaper

Rafter wrote: »

Remember too that the FSCS is limited to £3billion a year.

As EalingSaver said I think you will find it's £4.3bn per year.

Besides, the governement has already said it will pay whatever is necessary then reclaim it back from the industry, in successive years if it goes over £4bn, as described in Martin's article.

Oblivion

papolo wrote: »

My friend, it is time to give up. you are just pushing it

So what exactly is your problem with the removal of the Novation clause from the T&Cs? It would help Kaupthing's perceived safety, would it not, something you seem awfully anxious to establish.

Dave.

BTW, you don't know me, so it's a bit presumptuous to call me 'My friend'.

benjdr

Oblivion wrote: »

BTW, you don't know me, so it's a bit presumptuous to call me 'My friend'.

Oh looks, this forum is turning into a night club on a Saturday night.
"Alright mate"
"you're not my mate, **** off"

Grow up.

Oblivion

benjdr wrote: »

Grow up.

Good advice. Work on it.

Dave.