Alistair Darling Guarantees Icesave 100%

silvercar

Isn't there something ridiculous about the number of british savers with icesave accounts roughly equally the population of Iceland?

nilrem_2

RED73 wrote: »

Does anyone know what time AD's official announcement will be?

I think it will be 12.30pm after PMQ .

home_alone

Its quite a shrewd move by AD he could go to 100% protection without upsetting our neighbours because icesave are unlikely to draw savings from other countries banks as they have now gone bust.

Do you think anyone remotely connected to icesave or their goverment will say sorry, I also think its puts an end to any ambition they had of joining the EU for real.

gary

Prav

mistry wrote: »

Today was the first time I've applauded a politician. not becasue I have more then 50,000 with Icesave. but because AD has promised savers money and will not let Iceland get away with it. Thats what I call looking after your citizens.

Well done AD. :T

This is exactly right - he's stood up for the ordinary person for a change. It sent out just the right message.

thumshie

http://www.wired-gov.net/wg/wg-news-1.nsf/0/1925C56046EBFB86802574DC00393424?OpenDocument

Full protection.
ISA's kept...

edwinac_2

silvercar wrote: »

Isn't there something ridiculous about the number of british savers with icesave accounts roughly equally the population of Iceland?

Quite!

The "Asset to GDP ratios" of the Icelandic banks were an early indicator of trouble ahead.

The FT illustrated the crisis in the whole European banking sector in an interactive graphic titled "Are European banks too big to fail?"

The answer to the FT's question is "yes, many banks are too big, but as Icesave has just shown, a bank is not necessarily too big to fail.

In the case of Kaupthing, the Asset to GDP ratio was an astonishing 623%.
For Icesave, the Asset to GDP ratio was also massive at 374%.

When I posted that data before, I was ridiculed as a "scaremongering" lunatic by the anonymous experts on this forum who chose to stifle those fears.

However, using the same indicators, other banks closer to home look worrisome, too..

For example, the Dutch bank ING, which has just taken over Kaupthing Edge UK, has an Asset-GDP ratio of 290%.

edwinac_2

home_alone wrote: »

I also think its puts an end to any ambition they had of joining the EU for real.

The exact opposite is possibly true.

The Icelandic banking crisis probably sealed the nation's fate as a sovereign nation state.

Iceland possibly has little option now but to hold out the begging bowl and join the EU, and on the EU's terms.

gimp101

thumshie wrote: »

http://www.wired-gov.net/wg/wg-news-1.nsf/0/1925C56046EBFB86802574DC00393424?OpenDocument

Full protection.
ISA's kept...

Thanks for that link. That is a HUGE relief to read for me, I for one will be drinking heavily & quickly when I get home tonight in an attempt to offset the major stress levels of the last few days.

br1anstorm

Alistair Darling's statement is - or appears to be - hugely reassuring for those like me with money in Icesave (I have £50k in a fixed term account, and £50k in limbo - shown as transferred out, but not yet into my UK account).

It would be good to get a clear statement on precisely what Alistair Darling's assurance of deposit-protection covers:

• if Iceland won't honour the £16k protection their scheme promised, then the UK is right to go after them...
• if Darling is saying that, pending the outcome of such action, the government will cover that initial £16k, that's good;
• the UK is of course obliged by the FSCS to cover the balance up to £50k;
• if Darling's undertaking also includes cover/compensation for the full amounts of savers' deposits with Icesave (ie over £50k), that's excellent - and a huge relief.

If in practice Darling has indeed promised this last point, it would in effect be the same commitment, and the same protection, as the government previously provided in safeguarding Northern Rock and B&B's depositors. That would be fair, and consistent. So I very much hope that we will see an explicit and authoritative confirmation that the Government's assurance covers the full amount of Icesave's depositors.

br1anstorm

EagerLearner

I am glad ISA's part of what AD is looking into protecting as people who have saved hard these past few years shouldn't lose that tax break.

"3. Arrangements are being put in place to ensure that all ISA customers of Icesave will continue to benefit from the tax-free status of their accounts."

I would like to know about whether interest on the accoutns will be paid - ISA or otherwise - anyone know any news on this yet?