Icesave: Can't get money out.

talana

Call me chicken

If you insist. I really can't understand all this paranoia doing the rounds

but I've just taken all my money out of kaupthing edge and put it in an English building society.

Where it will enjoy exactly the same level of FSCS protection as it did at KE.

I ain't putting any money in iceland stuff. One of its banks has already keeled over

Yes, as have some UK banks, as have some US banks, as have some European banks. The difference is?

Let's hypothetically say for a moment that KE do go belly up. What will happen?
Either:
(a) they would be nationalized by the Icelandic government a la Glitnir
(b) some other bank or financial institution will come in, buy them out and pick up the pieces, a la Santander with B&B
and if neither of those outcomes automatically guaranteed your savings then the fall back option is
(c) FSCS protection

Uncle_Ben

talana wrote: »

If you insist. I really can't understand all this paranoia doing the rounds

Where it will enjoy exactly the same level of FSCS protection as it did at KE.

Yes, as have some UK banks, as have some US banks, as have some European banks. The difference is?

Let's hypothetically say for a moment that KE do go belly up. What will happen?
Either:
(a) they would be nationalized by the Icelandic government a la Glitnir
(b) some other bank or financial institution will come in, buy them out and pick up the pieces, a la Santander with B&B
and if neither of those outcomes automatically guaranteed your savings then the fall back option is
(c) FSCS protection

You can call it cowardice or paranoia or anything you like. They ain't taking my money.

FCCS protection ain't no protection.

EalingSaver

talana wrote: »

Let's hypothetically say for a moment that KE do go belly up. What will happen?
Either:
(a) they would be nationalized by the Icelandic government a la Glitnir
(b) some other bank or financial institution will come in, buy them out and pick up the pieces, a la Santander with B&B
and if neither of those outcomes automatically guaranteed your savings then the fall back option is
(c) FSCS protection

You missed an option, one which seems to be forgotten a lot in the paranoia over Iceland banks (and yes I know you are not in that category).

The safety net for the icelandic banks is not just based on Icelandic Govt (which is where a lot of peoples concern is really coming from in my opinion). There is an MoU between the Scandinavian banks in general, (Iceland, Finland and if I recall Sweden). The last is perhaps particularly important - Sweden went through its own banking problems, in the early 90s if I recall, and by all accounts handled it extremely well (somewhat better than the total prolonged dithering of the UK Govt in the NR situation). OK, so in a total mess that MoU may not be worth anything, but the same could be said for all sorts of things in the very worst case scenarios in all countries.

Also, if IceSave and KE genuinely have little/no exposure to the worst type of mortgages etc., then in the event of them having a real liquidity crisis this fact surely will make them a much more attractive proposition for a potential acquirer. Compared to say B&B whose loan book was deterioating at a rate of knots so nonone wanted to take it on in its entirety as they would have been taking on an almost unquantifiable risk/level of bad debt.

isofa

People are so stupid, ill-educated and poorly informed. They read an article in a tabloid or on a forum, and think that must be right, anyone lost a penny in savings anywhere yet?

You really think UK banks are safer than others - gosh, really, NR, HBOS, B+B anyone...

elektra

shown73 wrote: »

It may sound odd, putting in a plug for ING, after all the rate cuts, but their websaver is paying 6.4% until March next year. You need an ordinary account , INGDirect, in order to move the funds into this account, but that's no big problem. Seems a pretty safe place to park it, for the meantime, although I suppose that there are some who would doubt the safety of almost anything at the moment. It's about the same rate as Icesave, anyway.

Where is this info advertised please ? I moved some money several months back when ING websaver was advertised as 6.5% till 1/10/08 then drops to 5% aer(as taken from website). So was thinking I probably need to move it now, but if it is 6.4% I will leave it there.

isofa

Uncle_Ben wrote: »

You can call it cowardice or paranoia or anything you like. They ain't taking my money.
FCCS protection ain't no protection.

So where are you putting it then, somewhere safer?! Not the safe UK banking system surely? Somewhere with FSCS (not FCCS) protection? Or under the floorboards?! :rolleyes:

Reaper

Do you remember a little while back Martin had a poll about leaving a burning building? You had the choice of walking out, in which case everybody would probably make it, or running in which case you'd definately be ok but other people probably wouldn't.

You can see the results here

In my opinion those taking their money out of the Icelandic banks (or any other bank they feel wobbly about) are the "runners". They'll definately ok but could cause a prefectly healthy bank to crash. Its human nature. Rather depressing really.

shindigger

Griffboy wrote: »

No, not taking the chance.

Especially when you don't know the difference between a coma and a full stop.
Lunatic post.
People like you give this site a bad rep.
Panic ramping idiot.

isofa

It's akin to the BBCs coverage of the NR saga, hyping it up, filming people in the street queuing. No savings were ever at risk, yet this just added to the nightmare - people considering they might lose their life savings. Now look at the situation - since the appalling nationalisation - NR having to scale down the accounts on offer temporarily because they are receiving too much money - oh the irony, and stupidity of people.

But then you only have to see the sort of mindless people they vox-pop in the street...

Pity this site is now awash with those similarly intellectually challenged.

99% of newbies can't read, or never make it as far as the FAQs or T+Cs, with most asking the same questions over and over again, punctuated by the odd loony with the same highly developed thread of, "we are all doomed". Heart warming stuff. Wish they would return to their copy of the Sun or Mirror and leave us in peace.

Limes

shindigger wrote: »

Especially when you don't know the difference between a coma and a full stop.
Lunatic post.
People like you give this site a bad rep.
Panic ramping idiot.

coma n 1: a state of deep and often prolonged unconsciousness; usually the result of disease or injury [syn: comatoseness]

full stop n : a punctuation mark (.) placed at the end of a sentence to indicate a full stop

I think you meant a comma didn't you?

Please don't call people idiots when you leave yourself open to so much criticism.