Iceland's bank shares suspended

stevetodd

No_worries wrote: »

The BBC article ends "the troubled banking sector may be too big for Iceland to be able to save"....

Let's just imagine, HYPOTHETICALLY, that a country is unable to compensate the first 20,000 Euros under the Passport Scheme. Would the FSA scheme then pick this up too or ONLY pay the balance in excess of this?

For example: £40,000 invested, Passport Scheme should pay 20,000 Euros (about £15000) leaving "outstanding" amount of £25000 for the FSA.

Would the FSA treat the £15000 as "outstanding" too, or just say 'tough', our responsibility is only the balance of money after the first £15000, regardless of whether you can get it or not.

Aren't Kaupthing Edge registered here in the UK and covered by the UK FSACS?

EalingSaver

Bleg wrote: »

I must admit that I am feeling abit uncomfortable and half wishing I had transfered my ISA funds to a British Bank. Someone please tell me I am being silly.

No you are not 'being silly'. It is entirely normal to have concerns. In the same way it would be entirely normal to have concerns if you had them lodged somewhere else e.g. a UK bank, and find that place was plastered all over the news. And I'm sure that most of us on here who have savings in Icesave and KE and who continue to try and counterbalance some of the more rabid and unbalanced anti-Iceland postings with 'another take' on the issue had and have our own misgivings underneath as well. After all, we're not stupid, its our money and we'd all prefer to turn the clock back 18 months to stabler times.

But lets bear in mind what has happened. the banking shares have been suspended. The banks have not gone bust. In a time of rampant press speculation maybe share suspension is no bad thing. And don't forget your guarantees. And based on other reports from posters the 'online branches' are still open for business.

My ISA and other savings are staying where they are.

isofa

stevetodd wrote: »

Aren't Kaupthing Edge registered here in the UK and covered by the UK FSACS?

Yes they are classed as a UK Bank.

stevetodd

isofa wrote: »

Yes they are classed as a UK Bank.

Yeah from their website:

Your Financial Protection:

Funds deposited with Kaupthing Edge UK are deposited with Kaupthing Singer and Friedlander Ltd (KSF). KSF is Kaupthing Bank's UK subsidiary. It is a UK bank authorised and regulated by the Financial Services Authority in the UK. Deposits are covered by the UK FSCS.

So we are as save as houses! Doh!

nicholbb

No_worries wrote: »

The BBC article ends "the troubled banking sector may be too big for Iceland to be able to save"....

Let's just imagine, HYPOTHETICALLY, that a country is unable to compensate the first 20,000 Euros under the Passport Scheme. Would the FSA scheme then pick this up too or ONLY pay the balance in excess of this?

For example: £40,000 invested, Passport Scheme should pay 20,000 Euros (about £15000) leaving "outstanding" amount of £25000 for the FSA.

Would the FSA treat the £15000 as "outstanding" too, or just say 'tough', our responsibility is only the balance of money after the first £15000, regardless of whether you can get it or not.

Firstly it's unlikely to happen that Iceland couldn't pay. If it did then the Europe Union would most likely step in to pay the initial 20K Euros (as it's a european scheme) as a last resort. The reason I think it unlikely is that you have to remember these banks are international, and also embedded in Scandinavian countries which have their own interrelated banking protections and finally the banks would probably be purchased by other banks anyway.

The FSA would just say tough if the firt part of the scheme failed and you didn't get your money (because it's nothing to do with them, it's like saying that a South American scheme should compensate you). Also you would recieve only £20K from the balance compensation- they wouldn't cover the last £5k because the limit is currently £35K (goes up to £50K from midnight).

Sorry if my tone is a little off trying to fit post in before end of lunch:o