Ladies and gents - please calm down and stop adding to the hysteria

GeorgeHowell

I can't see why anyone would keep more than £50,000 with one bank in the current climate, unless it's locked in an account where there is no withdrawal allowed yet.

theowl_2

Q&A's from the Times re this topic. . .
Q&A: What now for Icesave depositors?

Mark Atherton answers savers' questions following the demise of Landesbanki



div#related-article-links p a, div#related-article-links p a:visited !! color:#06c; } The 300,000 UK savers with £5 billion deposited in Icesave, the Icelandic internet bank, today found they were blocked from withdrawing any money from their accounts.
The move follows the decision by the Icelandic Government to take control of Landsbanki, Icesave’s parent company.
Icesave says, in a message on its website, that it hopes to provide more information shortly. But in the meantime Times Money answers some of the key questions anxious savers are asking.
Q: What happens now?
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A: The ball is now in the Icelandic Government’s court. The Government said today that Landsbanki would be taken over by the Icelandic Financial Supervisory Authority. The IFSA said its aim was to ensure that Landsbanki continued its banking operations in Iceland, but has not made clear what would happen to Icesave, its UK savings operation. The Icelandic central bank is reported to be seeking a loan of €4 billion from Russia to shore up the ailing Landsbanki.
Q: When will I be able to withdraw my money?
A: Nobody knows. A spokeswoman for Icesave said: “We are waiting to find out what is happening from the Icelandic Government.”
Q: Is Icesave bust right now?
A: No. The Icelandic Government is battling to save Landsbanki, Icesave’s parent company, along with the country’s other major banks. As long as it has not been declared bust, savers cannot make any claim on either the UK or the Icelandic deposit guarantee scheme.
Q: Suppose the worst happens and Icesave does collapse. What happens then?
A: Savers would be entitled to compensation of up to £50,000 under the terms of the UK deposit guarantee scheme. However the sting in the tail is that the first €20,887 (£16,317) of any compensation would be the responsibility of the Icelandic scheme.
Q: How likely is that scheme to be able to pay out, given the upheaval in the Icelandic banking system?
A: Good question. The Icelandic scheme has only £88 million in the kitty to cover deposits totalling £13 billion.
Q: What happens if the scheme can’t meet the compensation bill?
A: The Icelandic Government is supposed to step in and cover any shortfall, but with the country already struggling to avoid an economic collapse there are doubts about whether the Government would be in a position to guarantee deposits worth a total of twice the country’s GDP.
Q: What happens if the Government can’t pay the compensation bill?
A: An Icesave spokeswoman says that, as a last resort, three other Scandinavian governments - Sweden, Norway and Denmark - would back Iceland in an emergency.
Q: I managed to withdraw my money from Icesave yesterday, but they say it takes four days to transfer. Will my money come through or will Icesave retain that cash because of today’s freeze on accounts?
A: An Icesave spokeswoman said she did not know for certain, but as the transfer process takes several days and things came to a halt today, there is a sizeable chance that the money will be stuck in the system.
Q: I have savings with Kaupthing Edge. Should I be worried?
A: Savers with Kaupthing are in a better position than those with Icesave because, thanks to Kaupthing’s link with Singer & Friedlander, it qualifies in full for the UK’s £50,000 deposit guarantee scheme and does not have to seek any part of that compensation from Iceland

BACKFRMTHEEDGE

isofa wrote: »

The title of this thread was "Ladies and gents - please calm down and stop adding to the hysteria"...

and there in lies the problem IMHO. That has been the mantra on this board from the regulars - "everything's fine, you are a doom monger" and that's is if you were lucky mostly they weren't even that polite:mad:.

Most of the regulars on this board have been really rude and impolite to anyone who tried to suggest there was a real problem (and continue to be). Most of them have truly buried their heads in the sands. Sadly, they have influenced a few unfortunates in the process :mad:

posh*spice

GeorgeHowell wrote: »

Agree with you and think it is fast starting to become self-fulfilling phrophecy and too many people are panicking due to the media but guess it sells newspapers and hence advertising.

So this isn't the worst Financial Crisis since the 1930's - the paper's are making it up it up to sell papers:rolleyes:

Stavros_3

BACKFRMTHEEDGE wrote: »

Most of the regulars on this board have been really rude and impolite to anyone who tried to suggest there was a real problem (and continue to be). Most of them have truly buried their heads in the sands. Sadly, they have influenced a few unfortunates in the process :mad:

Thats a sweeping statement, Most of the regulars Who exactly are you referring to. I call in most days and I would be highly offended if you were refering to myself.

moanymoany

Call it what you like - it is your hard earned cash - if you want to get it out of remaining Icelandic banks DO IT NOW!