You people REALLY need to consider the following...

cas84utd

I'm not trying to induce panic or fear, or be negative, but this has to be said. I have 55k in Icesave and Kaupthing accounts so it's not in my interest to induce panic.

Everyone is banging on about compensation schemes. "You're safe", "You're covered", "So long as you're under 50k..." "50k this... 50k that...".

Let's have it right. None of these schemes have been tested. Not even the UK scheme, let alone this dreaded passport scheme. Let's look at a few possible scenarios.

Scenario 1 - Large UK banking institution goes under. Do you REALLY think that the government / FSCS has the funding and logistical expertise to adequately compensate all account holders in a timely and efficient manner? Have a laugh. I'm thinking 6 months minimum on that one. More like 12.

Scenario 2 - IceSave. I'm sorry guys but we all need to prepare for the worst. The Icelandic government is going to put their citizens first, that's only natural. It's not fair, but it's what's going to happen. Bearing in mind the amount that they have available to compensate people with, and the amount of depositor liabilities that will arise from Landsbankis demise... UK investors are going to get screwed over here.

And as for this stuff about Sweden / Denmark / Norway etc stepping in to help Iceland... well as far as I'm concerned that went out the window when Iceland was forced to go to RUSSIA for a loan, and forced to pay 0.5+ > LIBOR! If those other nordic countries were going to back Iceland, then Iceland would not have been forced to take this rate from Russia would they?

I have a 22k ISA with Icesave, it's taken me years and years to build up. And I'm preparing myself to lose 16k of it, because, having looked at the situations and the facts therein, I believe that is what will happen.

Your thoughts?

Patr100

My thought is you needn't have started yet another thread on the subject and, by the way. I have/had money in Icesave.

XXXX

I only have about 4K+ there, but why should we be treated unfairly to the Icelandic citizens? just because we believed in them and entrusted our money in their hands?

bazster

cas84utd wrote: »

None of these schemes have been tested. Not even the UK scheme, let alone this dreaded passport scheme. Let's look at a few possible scenarios.

Scenario 1 - Large UK banking institution goes under. Do you REALLY think that the government / FSCS has the funding and logistical expertise to adequately compensate all account holders in a timely and efficient manner? Have a laugh. I'm thinking 6 months minimum on that one. More like 12.

The UK scheme *has* been tested, it paid out for the B+B depositors with money loaned to it by the government. Instead of making us all apply for it individually, the government/FSCS cleverly handed the money and the accounts over to Santander thereby saving us and them a great deal of hassle.

Andrew64

I can't help thinking that the Icelandic PM is telling us to get stuffed.

Iceland PM warns it's 'every country for itself'

"In an interview with The Telegraph, Mr Haarde said Landsbanki's foreign operations – including Icesave – had been separated from the domestic bank and it was likely they would be sold off. He said it was "every country for itself" in the worst crisis to hit Iceland for a decade. He would not deny reports that the government officials now controlling Landsbanki would allow Icesave to fail."

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/3153061/Financial-crisis-Iceland-PM-warns-its-every-country-for-itself.html

MIKELSOK

Cas84utd

I agree with your assessment, thats what my own fears are, ie, The initial £16K is lost because when you do the maths of how much is available ie £80million against God knows how many £Billion then unless they come up with other funds we will get about £100 back if lucky.

I think the UK government should freeze some UK / Icelandic assets by way of compensation if as I susspect the Icelandic scheme fails to deliver should Landsbanki be 'Officially' declared insolvent.

www.timesonline.co.uk/tol/money/savings/article4898782.ece