Icesave crisis - What happens to those of us with above £50k in our account?

eric7ru

Dustangle wrote: »

Iceland isn't a county in a far off bit of the British Isles. It's a sovereign state with a small but effective navy, and which looks as if it is about to form an alliance with Russia. It isn't even in the EU and I don't think the ICJ has jurisdiction over this kind of dispute. And its national debt was 500% of its GDP before this thing blew up, when people like some of the posters here thought it would be a good idea to lend them money.

They will tell you - in Icelandic - to jump in the sea.

To be honest, i'm interesting at all in Iceland, but it have via nationalised banks a lot of assets in UK, half of Oxford street - i think Deb will cover all obligation easily....plus it far from being a friend with russia , this loan talks are talk only

Pssst

I'm fortunate to a degree in that i have way less than 50k in the pot with these crooks. I'm hopeful that I'll get it all back in time. If howver i dont, I'll simply get a personal loan from a UK bank and default on it. Let those who created the situation pay for it i say.

1+1=3

Vagabond, like you I had an inheritance from my father last year. I put £152,000 into Icesave's easy access, and £50,000 into their fixed-term 1 year account, along with switching my £17,000 ISA over to them. Pretty much everything I have. I took out the easy access money on Sunday night, but now I hear it's being reversed back in. I feel numb today and I know it's my own stupidity that got me into this. But I'd just like to say thanks for this thread, it's nice to be able to write about it, and read the kind suggestions on here.

Dustangle

Pssst wrote: »

I'm fortunate to a degree in that i have way less than 50k in the pot with these crooks.

How are they crooks? They didn't hide anything, did they? You had all the information you needed to make a decision, you made your decision, and the logic of lending money to an institution which comes from a country whose national debt was 500% of its GDP unravelled. Now you are proposing a fraudulent scheme.

You seem to be the crook here.

br1anstorm

tomterm8 wrote: »

There is a chance you will recover more than 50k. What's going to happen is that the UK govt will guarantee up to 50k of your savings in event of default. However, the bank still has numerous assets, and so all the rest of the money will form a claim upon those assets like other creditors.

My understanding is that under Icelands bankruptcy law, as it is being amended, retail deposit customers will have first claim on any proceeds of asset sales, ahead of bond holders and other unsecured creditors.

This suggests that eventually you will get a high percentage of your money back.

Bankruptcy of Icesave is only one of various possible scenarios. But if it happens, there's a crumb of comfort in the comment I've highlighted above. Does anyone have even a ballpark idea of the figures for Icesave's retail deposits (which must be available somewhere) , compared to the total value of its current capital and realisable assets (maybe more difficult to assess). That might give us some indication of what deposit-savers might get back if Icesave did go bust.

And presumably the administrators would have to treat all retail customers - whatever their nationality (Icelandic, UK, etc) - equally when handling any claims?

br1anstorm

Pssst

re www.icesave.nl at least the netherlands bank are putting out some info..

see

http://www.dnb.nl/en/news-and-publications/news-and-archive/persberichten-2008/dnb188903.jsp

shaz77_2

Pssst wrote: »

re www.icesave.nl at least the netherlands bank are putting out some info..

see

http://www.dnb.nl/en/news-and-publications/news-and-archive/persberichten-2008/dnb188903.jsp

The UK is going to have to raise to protection of savers deposits to stay inline with other countries.

martinman3

Dustangle wrote: »

How are they crooks? They didn't hide anything, did they? You had all the information you needed to make a decision, you made your decision, and the logic of lending money to an institution which comes from a country whose national debt was 500% of its GDP unravelled. Now you are proposing a fraudulent scheme.

Like you, I know that the information was all there but I suspect that the Icelandic government is currently not playing by the rules.

Preventing UK savers from accessing their accounts while Landsbanki carried on.
Placing Icesave in administration but not in default so compensation cannot be claimed yet.

There is a lot of horse-trading going on behind the scenes involving the governments of Iceland, Russia, Denmark, Norway, Sweden, and UK with Iceland probably trying to get D, N and S to support them but they have banking problems of their own.

Dustangle wrote: »

You seem to be the crook here.

Please don't drag the thread down to that level.

Dustangle

martinman3 wrote: »

Please don't drag the thread down to that level.

Intentionally and dishonestly entering into an obligation with the intent to default is fraud.

nicholbb

shaz77 wrote: »

The UK is going to have to raise to protection of savers deposits to stay inline with other countries.

This won't help Icesave customers unless it's passed before the bank goes into liquidation.:(