Icesave: Can't get money out.

EalingSaver

ianmr65 wrote: »

A few points to ponder.

Quite. And a good post too.

ad44downey

Very true. I wonder if any of the sheep will read it.

Paul_Herring

ad44downey wrote: »

Very true. I wonder if any of the sheep will read it.

[STRIKE]B[/STRIKE]naaaahhh!

Nowt as predictible as sheeple.

mybrainhurts

There are two reasons to be much, much more worried about icesave than any uk bank. The first is a question of economics. If the UK has to make good a stering loss that is no problem because if the worst comes to the worst it can print the stuff. If Iceland wants sterling it has to buy it with krona which is sinking against real money like a really sinky thing making a determined assault on the world sinking record - 30% in a week! and that will look as floaty as balsa wood compared to what will happen if it starts to print krona to buy sterling with. The second is political. The uk government cannot let a uk bank fail but it can say, look, we only regulate uk banks. You made a grown up decision to bank with icesave knowing that iceland underwrote the insolvency risk. The iceland government contrariwise is not going to put the comparatively trivial losses of UK investors in its top one hundred things to worry about because they don't vote in Icelandic elections.
By definition it is never wise to panic. But there are definitely times to head for the exits as quick as you can without looking undignified. This is one of them.

LucyTheDwarf

The government can't let a UK Bank fail?

Kaupthing, Singer and Friedlander *is* a UK bank.

And would you really even want the government to print us all our own personal batches of £50,000?

pizzagirl

mybrainhurts wrote: »

There are two reasons to be much, much more worried about icesave than any uk bank. The first is a question of economics. If the UK has to make good a stering loss that is no problem because if the worst comes to the worst it can print the stuff. If Iceland wants sterling it has to buy it with krona which is sinking against real money like a really sinky thing making a determined assault on the world sinking record - 30% in a week! and that will look as floaty as balsa wood compared to what will happen if it starts to print krona to buy sterling with. The second is political. The uk government cannot let a uk bank fail but it can say, look, we only regulate uk banks. You made a grown up decision to bank with icesave knowing that iceland underwrote the insolvency risk. The iceland government contrariwise is not going to put the comparatively trivial losses of UK investors in its top one hundred things to worry about because they don't vote in Icelandic elections.
By definition it is never wise to panic. But there are definitely times to head for the exits as quick as you can without looking undignified. This is one of them.

The Icelandic banks are regulated in the UK though. Don't let the facts stand in the way of a scaremongering rant though

The doom and gloom mob should retire to their bunkers for a few years with their stockpile of tinned baked beans and leave normal people to get on with their lives!

Paul_Herring

mybrainhurts wrote: »

If Iceland wants sterling it has to buy it with krona which is sinking against real money like a really sinky thing making a determined assault on the world sinking record - 30% in a week!

which has nothing to do with people's deposits with the bank in this country.

The second is political. The uk government cannot let a uk bank fail but it can say, look, we only regulate uk banks. You made a grown up decision to bank with icesave knowing that iceland underwrote the insolvency risk.

May I suggest you stop reading the output of GMGT?

mybrainhurts

LucyTheDwarf wrote: »

The government can't let a UK Bank fail?

Kaupthing, Singer and Friedlander *is* a UK bank.

And would you really even want the government to print us all our own personal batches of £50,000?

I said icesave. And yes, if I am out of pocket 50 000 the advantage to me of being given £50 000 specially printed money outweighs the slight debasement of all the currency caused by printing it.

mybrainhurts

pizzagirl wrote: »

The Icelandic banks are regulated in the UK though. Don't let the facts stand in the way of a scaremongering rant though

Yes, but the regulations affecting icesave as opposed to KE require that Iceland, not the UK, makes good the first eur 20887 ish of the loss.

LucyTheDwarf

Slight debasement? It's not like there's only 1 or 2 people who would be affected...

And, sorry, yes you did say Icesave. There's so many threads about the Icelandic banks at the moment, I'd forgotten which one I was posting on. Slap on the wrist for me not reading properly.