Irish government guarantee bank deposits

witewabbitt

What a nuisance, I just wrote a long post and it got lost in the ether. Oh well, start again.

I've spoken to someone at Head Office, A-I Dublin. With her Manager's authority, she said that the draf tdocument (link to it on the A-I IOM site, in section 3.1 says -
3.1 “covered institution” means a credit institution or a subsidiary of a credit
institution—
and this means all subsidiaries, including the IOM and Jersey.

She also pointed to section 10 and 10.1 -
10. The covered liabilities are those liabilities existing from 30 September 2008 or at any
time thereafter up to and including 29 September 2010, in respect of the following:
10.1 all retail and corporate deposits (to the extent not covered by existing deposit
protection schemes in the State or any other jurisdiction);
and said that this means that if A-I went down we would get £50,000 from the Manx scheme, and the rest from the Irish one.

So I take this as quite positive and will wait a bit longer. She said the wording of a statement had to be gone over by the legal people, and that might take ..' how long is a piece of string, 1 hour, 1 day...'.

gozomark

thanks for that - that was my interpretation from reading the draft before - so for many people the guarantee would only involve the IOM scheme and not the Irish one - I wonder what would happen if the IOM refused or couldn't pay out - would the Irish guarantee come in to cover 100 % ?

witewabbitt

Well that's a matter for conjecture. Absolutely no way of knowing I reckon. The bank is taking 'stacks of money' as new deposits, so they tell me.

gozomark

witewabbitt wrote: »

. Absolutely no way of knowing I reckon..

well there is, but its analogous to Schrödinger's cat - the only way you can truly find out is by killing the bank !

witewabbitt

Not a good move. Let's just hope we never find out whether it's alive or dead!

craines

has anyone got an update on this direct from anglo irish iom ?
surely with the draft now published, passed by the EU and the Dail, there's not too many reasons left why we haven't got clarification direct from the bank -- unless of course it's not good news...

rob999_2

I agree craines why are they taking so long???!!!
Read on another web site a poster said:

Re: Anglo Irish Bank - Compensation scheme cover


Reply Quote Spam

I was told by Anglo Irish IOM that they were waiting for written confirmation that the Irish government scheme is covered. However they have been verbally informed that it will be covered


-But this is all hearsay and gossip and may simply be wrong.
I did read in an Irish newspaper that the Irish Banks are waiting for written confirmation as to how much they have to pay to join the compensation scheme, so maybe the position is the said banks are waiting to see what it will cost them first.

Who knows?

witewabbitt

Hello again,
I’ve been corresponding with the Irish Financial Regulator, and the Anglo Irish Bank(IOM). I reproduce the jist of it below. You need to start at the bottom and work upwards to get the sequence right, but the most recent bit, from the A I, is the most relevant.

Hi
Yes what you read is true, we have applied as a subsidiary to fall under the Irish government.
All the subsidiaries of the main Irish banks will find out if they are covered or not on Friday.
Thanks
Rachel

From: (me)
Sent: 20 October 2008 11:34
To: Personal Savings (IOM)

---

(A I IOM)
Subject: Fw: Anglo Irish Bank in Isle of Man

I wrote to the Irish Financial Regulator concerning the Irish Guarantee to try to clarify whether the Irish Guarantee applies to your bank, or not.
My letter to them and their reply are below.
I have highlighted one sentence which is of concern. Does that mean that the subsidiary bank (you) has to apply for inclusion? If so, has an application been made? I understand from the Irish Draft, that there is a limited time for banks to apply.
I thank you in advance for your reply,

---

Original Message

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From: [EMAIL="consumerinfo@financialregulator.ie"]consumerinfo[/EMAIL] (Irish Regulator)
To ---(me)
Sent: Monday, October 20, 2008 9:37 AM
Subject: FW: Anglo Irish Bank in Isle of Man
The Irish Government's statement says that the Guarantee will also apply to " such specific subsidiaries as may be approved by Government following consultation with the Central Bank and the Financial Regulator." We understand that wholly owned subsidiaries are covered by the guarantee, but as stated in the press release, as may be approved by Government following consultation with the Central Bank and the Financial Regulator.
The Minister for Finance has indicated that the Government will consider applications by subsidiaries for inclusion.
Anglo Irish Bank as you mentioned is a subsidiary operating in the Isle of Man, and is licensed and authorised by the Isle of Man Financial Supervision Commission. I would suggest you contact the commission directly if you need more information on this. For clarification of the terms and conditions of the Government Guarantee and what subsidiaries may be included in the Guarantee, I suggest you contact the Department of Finance at www.finance.gov.ie .I hope this is of some assistance to you.
Yours sincerely
Peter O'Mahony
Consumer Information
This email does not constitute legal opinion or advice.

---

Original Message

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From (me)
Sent: 15 October 2008 10:01
To: consumerinfo ---( Irish Regulator)
Subject: Anglo Irish Bank in Isle of Man
Good morning,
Please can you tell me whether the Irish government Guarantee covers the subsidiary Anglo Irish Bank in the Isle of Man? They themselves say they have been waiting for clarification from Ireland.

craines

thanks witewabbitt, very helpful update -- particularly to know that anglo irish iom have actually applied to be included.
i guess we need to wait a bit longer before we can hopefully sleep easy. mean time i'm still going to complete my ns&i account opening -- nothing like having a plan b...

craines

rob99: thanks for your info too -- i suppose it makes sense that before we can get written confirmation, the banks have to receive the same from the irish gov. doesn't make the waiting any easier though.