Irish government guarantee bank deposits

craines

Found the draft if anyone is interested...
http://www.finance.gov.ie/documents/publications/other/draftschbud08.pdf

gozomark

no expert, but think the relevant bits are

10.1 all retail and corporate deposits (to the extent not covered by existing deposit protection schemes in the State or any other jurisdiction);

12 The covered liabilities of a subsidiary of any parent credit institution which is not regulated by the Regulatory Authority (being a subsidiary which is a covered institution) shall include only such covered liabilities of that subsidiary: (i) which relate to its own business;



which to me suggests IOM is covered, but only that part in excess of the IOM's own guarantee ???

witewabbitt

We still aren't really any the wiser. A-I still don't know, or won't say, neither will the Isle of Man Financial supervision commission. I've emailed the Regulatory body in Dublin, but no reply. It's too bad, nerves and patience are wearing thin. The FSA suggested I spread my money out in £50000 chunks in various different IOM banks or building societies. What a pain.

gozomark

witewabbitt wrote: »

We still aren't really any the wiser. A-I still don't know, or won't say, neither will the Isle of Man Financial supervision commission. .

for compliance reasons, they would have been unable to say until this draft came out, (and maybe not until its passed) - hopefully get answer today

rob999_2

I associate myself with posts 153 and 154 and thank the posters.

It is getting close to the time that Anglo Irish Bank really should start coming up with a definitive statement and at the moment just is a reference on their group web site to this draft legislation.

I have spent some time trying to comprehend this legislation and whilst I may be totally wrong I conclude taking an optimistic interpretation and putting it in plain English so far as it applies to Anglo Irish Bank IOM:

Yes Anglo Irish IOM is protected by the guarantee, if they are in group deed scheme (see draft section 5 and 6) and then the guarantee will apply once there is no further recourse to the IOM protection and the parent(section 12).

No point in having so many reference to subsidiaries unless they are so protected provided that the IOM subsidiary is in the group.

The legislation is full of gobbledeekook(obfuscation), and apparently cannot be changed due to the EU, and I ask rhetorically why do we have to try to second guess them???!!!

So the least we are entitled to is for Anglo Irish and the Regulator to say yes or no very soon.

gozomark

there is an explanatory memorandum now

http://www.finance.gov.ie/documents/publications/other/explmemoguar.pdf

however, at first glance I can't see a direct confirmation regarding IOM

witewabbitt

It looks to me as if the institution will have to apply to be part of the scheme, and then pay a quarterly fee to the Irish Govt. They might be reluctant to do this as it might be seen as a sign of weakness. Is this how any of you interpret the Explanatory notes?
http://www.finance.gov.ie/documents/...plmemoguar.pdf

home_alone

Its only a matter of time that all the EU including the UK will go to 100/200K euros single/joint talks are now taking place.

gary

gozomark

It looks to me as if the institution will have to apply to be part of the scheme, and then pay a quarterly fee to the Irish Govt. They might be reluctant to do this as it might be seen as a sign of weakness.

do you mean Anglo Irish IOM will be reluctant to apply ? It wouldn't be them, but the parent bank that applies for the group. I'm sure all the banks allowed will apply - sure its a sign of weakness, but everyone knows there is a weakness.

gozomark

home_alone wrote: »

Its only a matter of time that all the EU including the UK will go to 100/200K euros single/joint talks are now taking place.
gary

true, but IOM is not in the EU....