Icesave - A bit of bad news

PZH

Fella wrote: »

All isn't lost yet Stormy. Hopefully we'll get some (real) concrete news soon.

I can't believe the Govt will not comment EVER

And I can't believe that when they do comment they're going to tell IceSavers that they are screwed

So all is not lost yet. Even though it's been a spectacularly bad day so far.

Well said - I think there is enough panic already without anyone speculating what may or may not happen. The media are also fanning the flames of paranoa - but don't they always ??

altocumulus

Iceland is not in the EU - that is fact - however it is in the European Economic Area (EEA) and has adopted all EU Directives making Iceland an integral part of the European Internal Market for financial services and consumer protection.

EagerLearner

Stormy wrote: »

Iceland isnt in the EU!



I guess its too early, no one seems to know whats going on..

I didn't say they were.. I said EU leaders all need to pull together to sort this so it doesn't happen anywhere else.

Stewster

luvpump wrote: »

At This Juncture i would Just be Happy if you got ur Money back !!! never-mind "Wrappers" ..

Fair point luvpump, but it is a valid question. At the moment though, Landsbanki is still a fully trading bank - albeit under the ownership of the Icelandic government and is not taking deposits or allowing withdrawls in the UK. Even if the Icelandic compensation scheme is unable to pay out, everyone should remember that Iceland has reciprocal arrangements with all the Scandanavian countries compensation schemes. In short, if Iceland can't pay - they will !

Just sit tight and wait and see what happens. At any rate, I can't believe that the EU will allow a sovereign country to go bankrupt - they have just promised to support all major banks haven't they ???

[Deleted User]

a voice of reason. Well done stewster

Leon_W

I seriously think the only solution will be for the UK Gov to come to the rescue of this one and it isn't going to be straightforward.

The Icelandic compensation scheme is all well and good in theory but in an unprecedented set of circumstances isn't worth the paper it is written on. It was seriously underfunded to start with and cross funded by other Icelandic banks. How reassuring. There is always the !!!! sure attitude that they could cope with one financial institution going to the wall, but ALL of them at the same time, that's a different matter.

The 4 billion loan from the Russians won't even touch the sides.

Former_MSE_Dan

Hi folks,

In case it is of interest, here is a comment we are just sending out to the press at the moment, following this mornings events:


[FONT=&quot]MONEYSAVINGEXPERT.COM NEWS RELEASE
[/FONT][FONT=&quot]Tuesday 7 October 2008 [/FONT]

[FONT=&quot]It's small ISA savers with most to lose in Icesave[/FONT]

"As news floods in about Icesave, it's crucial the UK Government clarifies its position, if not it's unfairly leaving people panicked and worried. Countless small savers have a few thousand in Icesave's best buy cash ISA. The ISA scheme was set up by this Government to encourage savings, and as such it has responsibility."
"While I hope it won’t come to that, if the compensation scheme is needed, Icesave's structure means the first €20,887 must come from the Icelandic compensation system and the remainder of the £50,000 protection from the UK scheme. Meaning its smaller savers have the most to worry about."

"But what if Iceland can’t pay this compensation? While it's said to have a reciprocal arrangement with other Scandinavian countries to protect its compensation scheme, the UK should be prepared to step in if necessary."
"Yet the Treasury isn't answering whether it will pay that money if Iceland can't. It needs to assure UK savers that the whole £50,000 will get to them one way or another. I first asked this question six months ago; it wasn’t answered then, it hasn’t been answered yet and now it's almost too late."

[FONT=&quot]We need to know what a British bank is[/FONT]

"UK savers have been told their savings are safe in British banks. This protection is two pronged; first the Government says it'll step in, as in the case of Bradford and Bingley and Northern Rock, and then as a belt and braces protection we have the Financial Services Compensation Scheme protecting £50,000 per person per institution."
"Unlike Icesave, banks thought of as 'foreign' like Kaupthing and ICICI are actually UK banks fully governed by FSA regulators; it's only their parent companies which are from overseas. Due to their high rates they have billions of UK savers' money in them and they are fully protected by the £50,000 scheme."
"Yet does the Government see these as 'UK Banks' and would it bail them out if there were problems or is it only the last resort compensation we can rely on? This needs an answer... Mr. Darling, what is a British Bank?"

Daily updated, bank-by-bank Savings Safety guide at www.moneysavingexpert.com/safesavings

Seajays

Icesave savers warned on accounts


Customers of the Icesave internet bank have been warned they will probably have to claim compensation for money held in their savings accounts.
http://news.bbc.co.uk/1/hi/business/7656387.stm

So it's not just Sky - the BBC is at it too... there's no news like bad news!

mybrainhurts

Again, repeating myself from another thread, write immediately to your MP via https://www.writetothem.com to demand that the UK government freezes Icelandic assets in this country pending clarification that there is no doubt about Iceland meeting its obligations to UK savers. There are 200 000 of us and we all have the vote.

rapid

From the FSCS
http://www.fscs.org.uk/consumer/

FSCS gears up to assist Icesave's UK branch customers


In the light of the current uncertainties, the Financial Services Compensation Scheme (FSCS) is today gearing up in case it needs to assist approximately 300,000 savers at Icesave.
Icesave is the UK branch of Landsbanki Islands hf (trading here under the registered name Icesave). It is an EEA bank that is authorised by the Fj!rm!laeftirlitið (FME), the financial services regulator in Iceland. The Financial Services Authority in the UK has reported that Icesave is now expected to go into insolvency proceedings in Iceland and this would trigger an FSCS default.
Eligible savers with Icesave are protected by the Icelandic Depositors' and Investors' Guarantee Fund (IDIGF), up to a limit of the first 20,887 of their deposits. As an Icelandic bank Icesave is not automatically a member of the FSCS, but it opted to become a 'top-up' member. This means that eligible retail savers with Icesave's UK branch whose savings exceed the Icelandic limit would benefit from top-up compensation from the FSCS covering the amount over the Icelandic limit up to the new FSCS compensation limit for deposits of £50,000.
If the default is triggered as expected, FSCS will contact all UK savers directly with details of how to apply for compensation. Further announcements will follow and we will keep this page updated.
Please watch our website for more information.