Icesave - good news from Icelandic PM

beardylondon

http://news.sky.com/skynews/Home/Business/Online-Bank-Icesave-Suspends-Withdrawals-And-Deposits-For-UK-Customers/Article/200810115114867?lpos=Business_News_Your_Way_Region_4&lid=NewsYourWay_ARTICLE_15114867_Online_Bank_Icesave_Suspends_Withdrawals_And_Deposits_For_UK_Customers

opinions4u

"If an Icelandic bank fails UK customers are protected up to £50,000
The first £16,170 of their money is protected by Iceland
The remaining £33,830 is protected by the UK government
If Iceland goes bankrupt, the UK will not cover the first £16,170
Joint accounts will be protected up to £100,000 "

The point re "Iceland goes bankrupt" is interesting.

Does that apply to Ireland (or any other nation) too?

I can be accused of playing devil's advocate here, but it reads to me as "bring your money home it's marginally safer here"

GeorgeHowell

If Iceland defaults on the portion to be covered by their FSCS equivalent, then nobody in their right mind would ever invest in Iceland again and they could indeed become the Chelsea FC of the international community.

I still think people with money in Icesave will get it all back -- eventually. But meanwhile they have all the worry and angst which could have been avoided had they listened when the FSA gave a specific warning about banks which the FSCS does not cover 100% directly. Some of us took this as a coded message for "Don't necessarily llok to us to bail out any defaults abroad." and we drew our money out accordingly. Others were seduced by the interest rates.

luvpump

opinions4u wrote: »

"If an Icelandic bank fails UK customers are protected up to £50,000
The first £16,170 of their money is protected by Iceland
The remaining £33,830 is protected by the UK government
If Iceland goes bankrupt, the UK will not cover the first £16,170
Joint accounts will be protected up to £100,000 "

The point re "Iceland goes bankrupt" is interesting.

Does that apply to Ireland (or any other nation) too?

Yeah good news, but can we believe ANYTHING were are told anymore ?? On Saturday the Head of Icesave u.k was saynig how everything is fine & dandy etc etc, 3 days later !!! ...

isofa

There are conflicting reports about this Sky news posting, on other threads, I'd wait until it's substantiated by a good source first.

However the passport protection explanation is correct, the first by Iceland, the second "top-up" by FSCS. The main worry is about Iceland and the first part!

thrupence

opinions4u wrote: »

The point re "Iceland goes bankrupt" is interesting.

Does that apply to Ireland (or any other nation) too?

I't doesn't apply to the main Irish banks. The main Irish banks operating in the UK will be covered in exactly the same way as Nat West or Lloyds etc.

So you'll get your £35,000/£50,000 from FSCS in the same way, and in addition any extra the Irish govt is guaranteeing. You won't have to go through any Irish scheme first, as is the case with some other countries.

jp01_2

beardylondon wrote: »

http://news.sky.com/skynews/Home/Business/Online-Bank-Icesave-Suspends-Withdrawals-And-Deposits-For-UK-Customers/Article/200810115114867?lpos=Business_News_Your_Way_Region_4&lid=NewsYourWay_ARTICLE_15114867_Online_Bank_Icesave_Suspends_Withdrawals_And_Deposits_For_UK_Customers

If Iceland goes bankrupt, the UK will not cover the first £16,170

like to tell us what is BAD news?

casper_uk

so if you have less then £16,170 you will have lost it all? Not good news at all

Dont_Panic_4

FSCS just posted this on their site. Should clear up a few things...




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 Fjármálaeftirlitið (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.
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1.02.05

[EMAIL="abuse@moneysavingexpert.com?subject=Reporting%20post%20http://forums.moneysavingexpert.com/showpost.html?p=14775277"][/EMAIL] EC6675F4-A75F-6BA0-4AF9-2E08C9BE0F80
1.02.05

GeorgeHowell

Brown may well have the FSCS cough up the £50,000 and then try to recover a portion from Iceland on behalf of investors. If people actually start losing money, even though its abroad, and even though they were warned, they will undoubtedly blame the British government and expect the British taxpayer to recompense them. Brown won't want that, especially within a couple of years of a general election. If Iceland defaults perhaps HMG should take West Ham Utd into public ownership as part compensation. The new club sponsor (it doesn't currently have one, since XL airlines went bust) could be the FSA, and season ticket holders could be guaranteed reimbursement of the first £500 of their ticket price in the event of relegation. Tessa Jowell could be made the new club chairman in order to ease the process of the nationalised football club moving into the nationally owned olympic stadium after 2012 (you know it makes sense). Upton Park can then be concreted over for more "affordable housing", in keeping with plans for much of the south east of England.

Stormy

Some futher info from Which?

http://www.which.co.uk/news/2008/10/icesave---latest-news-for-which-savers-158413.jsp