Irish government guarantee bank deposits

Lincs_2

I just spoke to Anglo Irish Bank IOM. They explained that they are waiting on clarification that the IOM subsidiary is covered by the Irish Goverment 2 year guarantee. They said they expect an answer by the end of this week and that this will be posed on the website. Additionally, the Tynwald will review - and hopefully pass- the recent request to raise the IOM guarantee to 50,000 pounds. The spokesperson also stated her view that because the main AIB office in Dublin guarantees deposits 100% and because people are rushing to deposit into the Irish banks because of the 2 yr guarantee that it is highly unlikely that there will be a bank failure...hmm, I suppose I can wait till the end of the week for clarification. But, given the incredible events that unfold each day I am not as sanguine.

occamsrazor

Lincs wrote: »

The spokesperson also stated her view that because the main AIB office in Dublin guarantees deposits 100% and because people are rushing to deposit into the Irish banks because of the 2 yr guarantee that it is highly unlikely that there will be a bank failure.

There's probably a fair bit of truth in that... and one of the clever aspects of the Irish Govt guarantee of 100% - guarantee everyone their savings are safe and the guarantee won't need to be used....

julio69

Makes sense.

missile

Is a guarantee by Irish Government more dependable than one from Iceland government?

occamsrazor

missile wrote: »

Is a guarantee by Irish Government more dependable than one from Iceland government?

I think so, they are a larger economy (even if not as large as UK) and are an EU member therefore have access to liquidity from the European Central Bank etc.... but am not an expert...

gozomark

occamsrazor wrote: »

I think so, they are a larger economy (even if not as large as UK) and are an EU member therefore have access to liquidity from the European Central Bank etc...quote]

all those, plus they are in the Euro, so no concerns on the currency front vis-a-vis their neighbours, unlike Iceland

rob999_2

Am closely following the situation with Anglo Irish IOM, and thanks to those who are keeping us updated.

I have seen this news item:

http://www.iomtoday.co.im/news/Isle-of-Man-records-first.4574836.jp

Lets hope we do not hear the same for AI.

Does anyone have any updated news re Anglo Irish?
I learn that the Irish government guarantee will extend to some foreign banks in Ireland, but do we know yet if it covers the Anglo Irish in the IOM?

Has anyone heard anything?

And is the bank in good shape financially or what?

Appreciate any information.
Thank you.

witewabbitt

Hello, I live in the IOM.

I went to the Anglo Irish yesterday and they are still waiting for clarification from the Irish as to whether or not they will be covoered by the 100% guarantee. As I undrestand it, the subsidiaries referred to by the Irish gov. are branches in Ireland of UK banks. They haven't made it clear whether off-shore subsidiaries of Irish banks are covered or not.

The Manx gov. has passed the £50,000 compensation scheme for private investors in all IOM-based banks.

occamsrazor

witewabbitt wrote: »

The Manx gov. has passed the £50,000 compensation scheme for private investors in all IOM-based banks.

Which is completely un-reassuring. The scheme is doubtfully-funded and only after a problem arises. And if they end up paying out to Kaupthing Isle of Man customers, which may take many years, how on earth will they cope if another Isle of Man bank fails?

From a Kaupthing Isle of Man customer with little hope of seeing his money again this decade unless there's a buyout.....

Lincs_2

I have read the legislation for the 50,000 pound guarantee and although it it true that it could need more funding IF other banks go bust, and I am not certain that will occur, nevertheless it is legally binding up to the 50,000 mark per depositor. It is something. Of course the 2 year Irish guarantee is better and we await news that it will kick in. I again called Anglo Irish yesterday (I am in the USA at present) to be told that they had expected the confirmation earlier in the week, and still expect it by close of business today (Friday).