Icesave: Can't get money out.

EalingSaver

freddykrueger wrote: »

..I do not have an excessive amount with Icesave but enough that if I lost it for any reason it would hurt. It is all in an ISA and with past investments I would deem myself to be low to medium risk..

I have an ISA with several years of contributions with them (transfers). Likewise my OH (on my original advice, gulp). I'm leaving it exactly where it is, along with the other savings I have with them. And I certainly would NOT close it down i.e. lose the ISA wrapper for good.

But that's my decision, this one is yours. If you really think they could go bust, in the complete grandest sense (as opposed to continue to survive and prosper, get into trouble but rescued by the other scandanavian banks, get into trouble and get nationalised or part nationalised etc.), AND you feel you need access to cash in your ISAs quickly i.e. they are not a long term hold for you so you afre then concrened about time to recoup money through compensation schemes, then you have a decision to make.

You might want to look at my other post where its being speculated that disposals of certain operations they made a couple of days ago is in preperation to buying the recently nationalised Glitnir from the Icelandic govt. If the speculation is true, one would assume that Landsbanki doesn't consider itself to be in either a liquidity or solvency problem.

Paul_Herring

jp01 wrote: »

Seriously you don't know? Please google Iceland news and read up.
Others have done some research on the Iceland economy and have drawn their own conclusions.
Others are wary that the FSCS/passport scheme will take ages to sort out the failing banks, and in the meantime savers lose interest.

The drying up of credit globally and the fall in Iceland's currency has led to worries the banks may not be able to refinance their debts.
Its three main banks have liabilities that equate to eight times the country's entire gross domestic product, which means they may not be able to turn to the Icelandic Government for help.The Icelandic Krona has fallen 32% against the euro over the last month

You might like to research where this 'protected' money ''magically'' arrives from to 'fund' the FSCS/passport scheme!

Lets hope the adminstrator actually leaves this post on. After all this website is called MONEYSAVER. i.e. SAVE YOUR MONEY.

Last one out turn the lights out.

Swap 'Iceland' for 'English' and you might have had a point worth making...

fatpig_2

manhattan wrote: »

jp01

Don't take this the wrong way but why are you preaching bad news for the Iceland banks?

Is it because:

You lost your bankers job so are letting out some anger?

You know something we don't know?

Or you're just trolling?

.

Headless chicken IMHO. When the next scare story starts about some other bank he'll be first in the queue panicking yet again. There are such people in society, not much you can do about them. Care in the Community doesn't always work.

monkeymaster

jp01 wrote: »

Care to read the TELEGRAPH, WALL STREET JOURNAL, TIMES, FINANCIAL NEWS.Bloomberg,Canadian Press
http://online.wsj.com/article/SB122308508391204449.html?mod=googlenews_wsj
http://www.bloomberg.com/apps/news?pid=20601109&sid=aQwIFKhLTL2Q&refer=home
http://canadianpress.google.com/article/ALeqM5gOQoilCF7C4OIhJ25KHlqmVGieEg
http://www.guardian.co.uk/world/2008/oct/04/iceland
http://www.efinancialnews.com/homepage/content/2452053691

Robert Peston sticking the boot in now too...

http://www.bbc.co.uk/blogs/thereporters/robertpeston/2008/10/creditors_call_time_on_iceland.html

crazydcl

Altarf wrote: »

There is an alternative way to look at this. If you were choosing now, would you open an account with an Icelandic bank now and why.

Are they safer than a UK bank (not as safe, but safer)? - no.
Do they pay better rates than a UK bank? - There seem to be plenty of UK banks offering similar rates at the moment.
Do they offer something else better than a UK bank? - no.

So would you open a new account with them today? and if you wouldn't open a new account, why keep an existing account open.

Sure, I've just opened an account with KE, and put a few grand in.

Why? - I'm fed up to the back teeth with the issue1, issue2, issue3 rubbish that we have to put up with from the UK banks that offer supposedly "similar" rates. I pulled all my money out of B&B after they upset me with that trick, and A&L are only marginally better - at least they haven't reduced rates on issue1, just introduced an issue2 with better rates, which is almost as bad in my book.

I just want a bank that pays a good rate and doesn't try to scam me with the renaming trick. That seems to exclude most of the best paying UK accounts at the moment. What do they offer that's better than a UK bank? Transparency.

Rant over!

casper_uk

monkeymaster wrote: »

Robert Peston sticking the boot in now too...

http://www.bbc.co.uk/blogs/thereporters/robertpeston/2008/10/creditors_call_time_on_iceland.html

Well he is obvouisly talking rubbish and doesn't know as much as certain posters on here who seem to know everything! People have stated their opinions and it's now up to depositors to decide what to do with the money. Don't see why everybody has to be talk trash instead of bringing facts to the table to dispute what people have to say if they disagree.

ianmr65

EalingSaver wrote: »

Yes CDS rates are worrying. Taken at straight face value there are alarming. And have been for some time. But perhaps the reason they haven't keeled over is because they are well funded and aren't heavily reliant on borrowing from the markets.

Of course if enough people keep saying they will go bust, we'll all withdrawl our money and make it so.

Good post. A few points to ponder.

1) The friday /saturday media effect.
During the most tummulteous week for the global economy in decades, the press have covered every angle.. so what happens come friday...and they've covered everything else they write about iceland. A lot of the news happened early in the week, but Peston et all report it on friday - discuss.

2) The cds spread.
As per ealing saver above, the cds spreads for icelandic banks have been astronomical for about a year. But when they were in the 300 - 700's and HSBC (as a benchmark for a bank that is as safe as a bank can be) was 30, last March. Everyone was predicting disaster. Now HSBC is 300, and the icelandic banks are 1700 everyone is quoting them again.
If the CDS spreads last March were anything to go by....

All icelandic banks would have collapased by now.
HBOS would not be be in a forced marriage with Llyods
B&B would not have to be broken up and sold
Fortis would not have to have been nationailsed ect.

The CDS angles are always backed up by credit derivatives traders who predict doom and glooom. This is what they do, as they are arbitraging the CDS notes, shorting and so on to make 'money' in this toxic market.

3) Liquidity
Unlike NR, the banks won't suffer in the event on a run on withdrawls, from oridinary savers.
1) The bulk of their deposits are by icelanders
2) Many deposits are term and locked in
3) The liquidity problems have been in place for a year, and the banks are good at getting funds from other sources. EG the Kuwait''s who invetsed in Kaupthing a few days ago.

4) Icelandic Goverment action/inaction
The Goverment nationalised Glitner. They are working on obtaining a large international loan. The suffer from two problems.

- Having to be Honest - Ie they tell it like it is. This is cos they have a very fincially savy populus, who are amongst the rishest per capita in the world. The Icelndic PM made an announcement in grave terms, cos he had too.
If the British, US and Euro goverments really told it like it was their would be a rioting in the streets.

- They are getting and have always had a very bad press.
Contrast the reporting for Iceland to Ireland - 1 syllable different -
The irish recent announcement, made to stave of one of their banks going under; would in the event of a systemic Irish banking collapse cripple the country- and expose each irish citizen to debts in excess of £50,000 each. Yet the reporting centred on the competion aspects, and how Irish banks are now 'SAFE'
Peston reports that 1 uk bank who is not lloyds or HBOS was within a day of two of serious liquidity problems, (far worse than icelandic bank ones) had the BoE not stepped in with yet looser collateral loan requirments. How heavily was this reported - Not at all - He didn't even name the bank. -My guess RBS.

Nationalisation / Sale.

If they ever get to the point where they need rescuing the Banks would i have no doubt, merge, or be sold, broken up or be nationailised. They are too interconnected, to the UK, and other euro zones, for this not to happen.
So far in this crisis no large commercial bank, in the world has been allowed to fail. Kaupthing and Landsbanki are no different.

LucyTheDwarf

Might I just add one thing to your great post, ianmr65?

These "panic about Iceland" stories sell newspapers.

Oblivion

LucyTheDwarf wrote: »

These "panic about Iceland" stories sell newspapers.

Should come in handy when all you've got left to sleep on is a park bench

Dave.

altocumulus

Oblivion wrote: »

Should come in handy when all you've got left to sleep on is a park bench

Dave.

That is if you can afford a park bench....