Icesave-please help/advice!!!!

EagerLearner

Fella you are absolutely right - if I saw the PM say that tomorrow, I *would* definately feel more comfortable but I can see how it would be less realistic to start expecting the government to start protecting beyond UK borders those like myself who chose to take a risk by having savings abroad.
But then again, why is the Icelandic government not offering me that 100% guarantee, given they wanted my business to come across into their border as a UK saver... they've enjoyed my £25k so far for investments, the UK hasn't enjoyed a drop.

Sordice I agree - definately going to watch and wait, make a decision with a cooler head (and it will be cold!) and a new day.

EalingSaver

Fella wrote: »

Yes, because people are genuinely worried.

Of course people are - we all are. None of us are stupid, none of us want to lose our money somewhere. These are worrying times. When have any of us been through a banking nightmare like this? We're all in the same boat. But there are certain posters on these forums - NOT the OP on this thread I hasten to add - who have gone out of their way to continually post up the same doom mongering stuff, time after time, cut and pasted, and completely unbalanced i.e. never bothering to provide a counter view. IMHO, that is not helpful, its just a way of inducing mass hysteria. And the way its been done in those cases strongly suggest a hidden agenda.

..., blame our useless Government that refuses to put a 100% guarantee in place....If they did that the panic would end tomorrow.

Probably not. Because then we'd see a rash of 'CDS rates on sovereign debts og through the roof' posts i.e. nobody would trust that the governments could realistically underwrite the 'promise'.

Sordice

Fella and EagerLearner, I agree it certainly would make me feel better if ALL savings were guaranteed by the UK FSCS but I'm grateful for the £50,000 protection so far... it is a beacon in these dark skies

I wonder what news tomorrow will bring?

LucyTheDwarf

Sordice wrote: »

Just thought I'd add my two cents (or should that be my two aurar ?) about this Icelandic bank issue

I have accounts with both Icesave and Kaupthing, and ISA with a few thousand in Icesave, and savings with a few hundred in Kaupthing. Yes this news of the trade suspension and the Icelandic economic 'turmoil' (I use the phrase loosely) has got me more than a little concerned...

However...

I think it would be foolish at this point for me to panic and withdraw/transfer my money into UK-based banks (or elsewhere), especially as I think that the facts are not fully known regarding how the Icelandic government's announcement and economic situation will affect Kaupthing, Landsbanki, et al. Indeed both Kaupthing and Icesave's websites aren't updated regarding today's announcements at the time of writing (unless I've missed something).

My resolve is therefore to keep my money where it is, ignore the extremist scaremongering but keep an eye on the situation and continually gather information so I can make the choices that feel right for me.

Hope that makes sense (it is almost my bedtime ). Just me expressing my thoughts.

What a sensible, level headed approach, and a good post that anyone with fears should read, and take advice on. It is rash to act without full information.

Thank you, Sordice.

:T

LucyTheDwarf

Sordice wrote: »

I wonder what news tomorrow will bring?

My guess is that tomorrow will clarify how the passport scheme sits with Iceland's protecting its own deposits 100%. I expect the UK to follow suit and provide 100% within the fortnight though, especially now Germany has.

EalingSaver

LucyTheDwarf wrote: »

What a sensible, level headed approach, and a good post that anyone with fears should read, and take advice on. It is rash to act without full information.

Quite. [just discovered that there need to be at least 10 characters in a reply... there, that did it]

tradetime

LucyTheDwarf wrote: »

My guess is that tomorrow will clarify how the passport scheme sits with Iceland's protecting its own deposits 100%. I expect the UK to follow suit and provide 100% within the fortnight though, especially now Germany has.

The German "guarantee" was a political statement, not a legislative statement like the Irish one. Brown or Darling could quite easily, and possibly have already, state that they will ensure that no saver loses a penny in any UK banking issue, without passing any laws, and it would put them in the same position as the German Chancellor says she has taken. We of course would be no better off. The government is waiting for an official response from Germany on this, which is a bit daft as it will undo any feel good effect they may have achieved from this, by effectively saying "we don't really mean it, just tell 'em what they want to hear"
http://www.bloomberg.com/apps/news?pid=20601100&sid=ayQUgBTLYJEc&refer=germany

Smitty

The problem with Iceland, because it is such a small country, is that it's 3 largest banks have assets worth (on some estimates) 15* Iceland’s GDP, meaning the government would struggle to bail them out.

As Icesave is uses the passport scheme to offer safety to savers, the first €20k is secured by Iceland's scheme... as its government has such limited resources, it might not be able to come good with this guarantee.

For me the combination of these two facts made it too risky for me to leave my cash in Icesave and I CHAPS'd it out today.

True, Icesave are not exposed to the sub-prime market, but they are now suffering in the second wave of the credit crisis as liquidity dries up across the board.

We have seen some massive financial institutions fall, would it really be that surprising for a 300k populous country's government be declared bankrupt? The credit default swaps market says not, as the cost of insuring against the Icelandic government has increased massively.

I am not saying this will happen, but it is not beyond the realms of possibility

Im slightly concerned about my Kaupthing Edge savings, but as they're backed fully by the UK FSCS, I am leaving them where they are.

Sordice

LucyTheDwarf wrote: »

What a sensible, level headed approach, and a good post that anyone with fears should read, and take advice on. It is rash to act without full information.

Thank you, Sordice.

:T

thanks LucyTheDwarf, much appreciated are your comments. Just my thoughts really

EagerLearner

Wow, I guess that puts things into perspective somewhat, I appreciate your post Smitty. I guess we have to hope that it wouldn't come to a point where all 3 banks went bust, hopefully the first domino would be caught by a newer more secure legislative package that instills confidence.