Icelandic Banks - The thread for OFFSHORE savers

1log

Occamsrazor, thanks I will write to all the emails you have suggested. I was watching the news just now, the Icelandic PM says that ordinary savers will be protected. Will the Kaupthing parent bank 100% guarantee be worth anything in the views of the Icelandic government or are Kaupthing IOM savers caught in the middle with no recourse. I see no light. This is scarring my life to say the least!

occamsrazor

UKExpat1 wrote: »

and does appear you can hold national savings abroad if not via their website.

Hi UKExpat1, welcome to this very supportive, if currently gloomy, community!

What is the source of this info? I've been trying to confirm if NS&I will open new accounts for non-residents for a while....

Worried3232

Dave_Braddan wrote: »

It was a pleasure to give out some positive news, maybe it will to help some people sleep a bit better this evening. I will still lose out but not by as much as I thought this morning
I will be typing out a bit more about the meeting as soon as I have the chance.

But as ready discussed on this thread the IOM compensation scheme is worthless as it has no money in it and only activates after the bust and them tries to charge the other banks on IOM 250k per year for a maxium of 5 yrs. It would never cover it and other banks wont have the cash as they may just flee IOM. I cant imagine its a popular place for depositors right now.

As you can see I am in a rather down beat mood, had all my savings in there 50k only for a few months as I thought it would get me a better rate that the UK as a higher band tax payer.

Please contradict me with some brighter news if you have any.

Thanks

Dave_Braddan

The administrator and the KSF director stated at the meeting this evening that the bank KSF in the IOM had approx £84 million of depositors' money. (don't quote me on these figures it was a long meeting ) aprox 60% of these monies were loaned to the UK KSF. 10% is retained at the IOM branch. Some of the remaining funds are in with the parent branch in Iceland. (sorry not too sure of the percentages but that was it roughly).
Therefore, a large amount of 'our' money should be in the hands of the administrator of KSF UK, assuming that these have not left the UK on their way to ING in Holland. If this money is still frozen by the UK administrator then maybe the IOM government will assist the KSF IOM administrator to recover these monies from there. That's his 1st port of call and he has instructed lawyers in the UK to follow this up. He will also be requesting the Icelandic government to honour the clause in the KSF IOM literature that states that all monies are secured. Don't know how successful he will be!

I will be discussing this with my MHK in the morning to persuade the IOM government to follow the UK in taking legal action against the Iceland government and also the UK for allowing our funds to be frozen or used (depending on what has happened to the funds).

It was also stated that the FSC had been approached by 3 interested parties with the aim of "taking over part of the bank". That was all that was said. This was confirmed by the administrator Mike Simpson. We are to be informed the outcome of any updates via the bank website and FSC website. There is no need to contact the administrator to make any claim as it is his job to contact all depositors in writing.

Worried3232

RHStone wrote: »

Made transfer From KSF(IOM) by BACS on 6th - Arrived in my account on 7th!

What time I made the request online at 3:01pm and when I phoned on Tuesday they said still processing. On Tuesday it was showing left but nothing ever came

occamsrazor

Apparently KSF(IoM) used KSF(UK) as the back office for processing and that there is a slim possibility for those who made transfers in the last few days that the money is within the UK - out of the jurisdiction of the IoM liquidators and I guess sort of with KSF(UK).

This would concur with a post on the moneysupermarket thread that said:

"I tried to move a large sum by chaps, instruction sent Sunday 5 Oct for action Monday 6 Oct first thing. Showed as leaving my account Monday, £20 fee debited, but after various emails I had it confirmed to me that the money was only actually "released" at 7.23am on Tues 7 by "Singer and Friedlander in London". I have an email from one of the Edge team confirming this. Given the money did not arrive in my UK Nationwide account I pushed to find out more, and even had the Kaupthing Edge team read out to me the "MT103" screen which, I was told, confirms the money having gone into the CHAPS clearing system, but alas, nothing has ever arrived at Nationwide in the UK as of yet. I pushed for more information, and was told that the Edge IoM team use HSBC as correspondent bank to do their chaps, as does Nationwide in the UK. The Nationwide CHAPS team were very helpful in contacting HSBC to "look" for the chaps, given HSBC was supposed to be clearing for both sides, but according to HSBC a chaps for this amount never existed in the system."

Does anyone know more about these payment/transfer systems?

PS - Apologies to "Hopper" on the other thread for copying his comment, it's frustrating we're not all in the same place. Well, at leats we only have one thread here at MSE and not dozens to follow.

Toast8

Apologies if this post query has already raised, but what of the BACS/CHAPS transfers seemingly already executed prior to the "liquidation"? Today has been a long day.

Like some of you guys my life savings are at stake. I understand that IOM used the UK operations for back office processing and that there is a good chance that our money is within the UK - out of the jurisdiction of the liquidators. This is because such transfer requests are stuck in some processing queue. Perhaps I am clutching at straws... It seems that the authorities don't know where some funds were squirraled to and I am at my wit's end.

More to the point I hope the IOM authorities play hard ball like the UK authorities in seizing appropriater assets because the govt and bank will stop at nothing to repatriate funds. I can't get any sense from ING/KT UK and my web account indicated the transaction had been processed. Yet in never made it's way to my link bank... This requires a thorough and urgent investigation by PWC and the authorities. The problem is we don't have the media on our side to kick up a fuss and that is exactly what we need to do if there is to be any chance of an equitable resolution. Confidence in the Manx is at stake.

One other query, what is the story regarding the compensation? I understand that this has recently been revised to 50k? And technically the liquidation following this afternoon's meeting was postponed enabling the new 50k provision to kickin. I will still be toast financially but every little helps
Cheers

occamsrazor

Dave - thanks for attending the meeting and the very useful information. I'm not sure quite what to make of it, but I guess it's better that 60% of it is in the UK rather than Iceland....

occamsrazor

toast8 - I was quoting from your post at the other forum in my last message. Hope you don't mind. Glad you are with us here now.... I think we are all pretty clueless as to the status of transactions made before KSF(IoM) was frozen......

occamsrazor

Interesting article here, though about UK customers:

http://www.citywire.co.uk/Adviser/-/news/adviser-news/content.aspx?ID=317137

APACS deal with BACS and CHAPS payments:

http://www.apacs.org.uk/

..and have a FAQ about the current problems, though only about the UK operations of Icelandic banks, here:

http://www.apacs.org.uk/Icelandicbanks.htm

And SWIFT deal with other currencies:

http://www.swift.com/

...but I think you'll have better luck getting your receiving bank to pursue the matter.