Landsbanki/Icesave has gone into receivership, the board has been dismissed

mobfant

Now time to see what actually happens to UK savers.


09.08 Iceland Commerce Minister says Landsbanki Board Dismissed, Bank in Recivership

Source (thanks occamsrazor): http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSSAT00565020081007


REYKJAVIK, Oct 7 (Reuters) - Iceland's market authority said on Tuesday it would take control of Landsbanki (LAIS.IC: Quote, Profile, Research, Stock Buzz), the island's second largest bank by value.
The statement comes after the country's banking minister told Icelandic radio that the bank would be taken over.
"Based on new legislation, the Icelandic Financial Supervisory Authority (IFSA) proceeds to take control of Landsbanki to ensure continued commercial bank operations in Iceland," the authority said in a statement.
"Domestic deposits are fully guaranteed, as declared by the government. Landsbanki's domestic branches, call centres, cash machines and internet operations will be open for business as usual. The objective of the IFSA's action is to guarantee a functioning domestic banking system."
The move is the latest step by authorities to control a crisis in the financial sector that has already led to the part-nationalisation of Glitnir (GLB.IC: Quote, Profile, Research, Stock Buzz) and new legislation to give the govenrment sweeping powers over the banking sector.

cwcw

:eek: What happens to the money that I transferred out of Icesave last night and has left my Icesave balances this morning? Will it reach my linked account????

occamsrazor

I think this is the article you are referring to:

http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSSAT00565020081007

KingL

What happens to the money that I transferred out of Icesave last night and has left my Icesave balances this morning? Will it reach my linked account????

Very likely, but nobody here knows. If you are feeling insecure about it, you might want to print a copy of your statement out just-in-case.

cwcw

Good idea. Have printed accounts off. Both the CHAPS and BACS withdrawals show status as "Processed" and have references to my current account number, so I'm hoping I made it just in time.... still got £550 in there though.

talltony_uk

Oh no... just reading this post, I have my life savings in ICESAVE, website is locked down, phones are not being answered emails unresponsive. Will the government protect me... to at least the 35K?

I need some answers!

robin_banks

Is it more the case that the bank has been nationalised?

KingL

I need some answers!

Please read the Credit Crisis faq (in a thread pinned at the top of this forum) which explains the protection available to you.

Reaper

Where does it say "Bank in Recivership"? Sounds to me like it has just been nationalised. This does not mean it has folded any more than Northern Rock when the UK government nationalised that.

Although the focus is all on Icesave today what about Kaupthing which has not been nationalised...? Is that a good thing or a bad thing?

DigitalJedi

The bank's been nationalised which at the moment is probably a good thing. Only problem is if the Icelandic government are credible enough to ensure people's confidence.

Landsbanki Guernsey which is not legally related to Icesave went into receivership earlier this week.

Only savings which are > £16k are covered by the UK government. Anything less is covered by the government of Iceland. Right now I've not much confidence in that guarantee. So if you have £50k, UK gov only guarantee £34k.

I did manage to get through to them this morning and the following was what they tried to reassure me with:

- They are still financially secure
- The guarantee from the Icelandic govt is prefunded
- That the current blank on withdrawls/deposits is a technical issue.

Now the latter is obviously a lie so it does make you wonder how much truth are the others.

I have the majority of my savings with Icesave so whilst I don't want to panic, draw my money out and cause the very problem they wanted to avoid, at the same time lying to customers is hardly a good way to go about building confidence.

mobfant

DigitalJedi wrote: »

The bank's been nationalised which at the moment is probably a good thing. Only problem is if the Icelandic government are credible enough to ensure people's confidence.

Landsbanki Guernsey which is not legally related to Icesave went into receivership earlier this week.

Only savings which are > £16k are covered by the UK government. Anything less is covered by the government of Iceland. Right now I've not much confidence in that guarantee. So if you have £50k, UK gov only guarantee £34k.

I did manage to get through to them this morning and the following was what they tried to reassure me with:

- They are still financially secure
- The guarantee from the Icelandic govt is prefunded
- That the current blank on withdrawls/deposits is a technical issue.

Now the latter is obviously a lie so it does make you wonder how much truth are the others.

I have the majority of my savings with Icesave so whilst I don't want to panic, draw my money out and cause the very problem they wanted to avoid, at the same time lying to customers is hardly a good way to go about building confidence.

It's not necessarily a lie - it could be down because everyone is trying to move their money out and demand is exponentially higher than usual, so they don't have the capacity to manage the transfers.