UK Govt to ensure savers get money back

LGG_2

thanks stompa

sss555s

investor7 wrote: »

I am in the same boat, i withdrew £ 33000 on Sunday night plus interest of about £ 1000 (by BACS). Thus far not a penny has arrived at my LLoyds TSB account.
Questions.

1 Will Alastair Darling pay the interest due up untill Sunday.?
2 Will Alastair Darling pay the interest which should have accrued since i made the withdrawal, after all if the money never arrives at LLoyds then it has effectively never been withdrawn. ?

!!!!!! :rolleyes:

Cant any of you super smart investors who chased that extra half a percent thinking you were so smart and ahead of the game have a thought for where YOUR "bail out" money is coming from?

Loads of threads on here now all about will i get every penny of "MY" money, how can they do this, oh how great AD is now that he's gonna give me back my money. :rolleyes:

I bet some of you guys were the ones moaning about the greedy banks and cwap government last week!!!

I have money invested too but is this really the right thing for the UK to step in and guarantee way above what was required when the poor guy on the next street who is just keeping his head above water is gonna have to pay more "tax" to pay your bail out?

Well done AD for shafting the UK to look good for a bunch of people who have more money than they need :money:

BTW i bet it costs us twice as much to chase the money through the legal system than the amount we'll get refunded from Iceland.

The quoted post was just one of many along the same lines showing it is really dog eat dog out there. If it gets much worse and we start having hyper inflation then your 33k may just about buy you a bag of potatoes

Malski

here are some possible useful questions & answers.

http://news.bbc.co.uk/1/hi/business/7657630.stm

steve_hill

That is such a huge relief. Darling is a star. It is absolutely outrageous - and certainly worthy of some big newspaper coverage/investigations - that the Icelandic government have basically given UK savers two fingers and stolen all our money to help bail out their own economy and people - it is beyond belief. That is that for Iceland, their future in the world economy is set for many a year now - a pariah on the level of Zimbabwe and other corrupt governments. They cannot expect to be part of the world community and act in this way.

I have no idea of the legal position for the UK government on this but freezing all Landsbanki UK based assets must be something they sorely want to do, if not going further into Icelandic government assets.

Disgraceful behaviour by the Icelanders, whose bank reps and PM stood there just a few days ago saying that all was ok, that the banks and deposits were safe. Does this count as the world's biggest daylight robbery?

strav100

The Icelandic Government will care for its citizens first as they are the one that will be voting (I don't think the Icelanders will vote in this lot again anyway)- but this mess will destroy Iceland's economy. No one will invest there anymore. We won't get anymore of these dual-compensation systems anymore. I won't be putting money into any foreign banks again -- now I'm going to get savings account with one of 100% government banks..stuff the interest

EagerLearner

I think this will make us all think more carefully about risk taking - I guess in the past few years I have been less careful, like many of us, and not reading enough into things. I expected to be protected, earn the highest interest and also be with a solid bank. You would think those are normal expectations but as of today my concerns are for security.
I am considering paying off my stooze credit card and minimising risk across all savings.
Also if and when my BACS transfer from 8am yesterday comes through from IceSave, I might even pay my tax bill in advance so it's not looming in January as who knows where things might be by then.
Sad times but at least today's news is a welcome relief of sorts and just makes me reconsider my options in favour of security! I am keen to know more about ING and if this means we will be able to log into our accounts and make transfers again. Thing is I have a fixed interest acc that matures next month and an ISA too!

altocumulus

I suppose this means that UK banks will continue to offer their less than inflation interest rates for our savings!

Babu

Has Alistair Darling now set a precedent in effectively guaranteeing all deposits whether they are with UK banks or not?

He could have just assured that the the compensation limit of £50,000 would have been covered and those with saving in excess of that would have then had to lump it.

home_alone

Babu wrote: »

Has Alistair Darling now set a precedent in effectively guaranteeing all deposits whether they are with UK banks or not?

He could have just assured that the the compensation limit of £50,000 would have been covered and those with saving in excess of that would have then had to lump it.

No he has placed ythe 100% protection with a bank that could not draw savings from other banks (the major drawback with full orotection limits) because its gone bust. Some countries have done this but the bigger ones are at the moment holding firm but for how long it must come to ensure savers or they can sing for their money.

gary

Eezageeza

sss555s wrote: »

!!!!!! :rolleyes:

Cant any of you super smart investors who chased that extra half a percent thinking you were so smart and ahead of the game have a thought for where YOUR "bail out" money is coming from?

I have money invested too but is this really the right thing for the UK to step in and guarantee way above what was required when the poor guy on the next street who is just keeping his head above water is gonna have to pay more "tax" to pay your bail out?

Well done AD for shafting the UK to look good for a bunch of people who have more money than they need :money:

So there are a number of issues here:

1. The number of savers and the total liability in Icesave is quite low, so the cost to the UK is relatively small.
2. That said, the political and economic ramifications of the UK government not backing UK citizens with savings in Icesave are potentially massive. Icesave was regulated by the FSA and therefore allowed to trade in this country. If depositors lose their money, what does this say about the FSA and the riskiness of all banks trading here, not just foreign banks? Second, if the government doesn't protect Icesave depositors in the UK, it demonstrates that it doesn't care about these citizens and we should therefore all be afraid! It would certainly be political suicide.
3. Like the "snowball effect", if some depositors lose their life savings/pension funds, the knock-on to the wider economy could be large and everyone will end-up suffering.

With regards to the implication that Icesave depositors are reckless/greedy or can in some way afford to lose their money, I can only say that is an easy thing to allege if you are of below-average intelligence and have no understanding of the economy!

Banks are historically safe places to put your money. It is prudent to put savings in a high-interest account, and it is not unreasonable to expect that a bank regulated by the FSA and underwritten by a compensation scheme involving a number of different countries should be safe.

As for being able to afford losing their money, well I am on a low income and have a relatively small amount of savings in Icesave (just a few thousand pounds). I had earmarked this money to pay off some mortgage to protect myself from negative equity. If I lost it I could end-up defaulting and eventually becoming bankrupt! Any notions of having kids before I'm 40 would also be eradicated. Does that sound like someone who can afford to lose his savings?