Chancellor should warn all UK depositors to close Icelandic based deposit accounts

valiant

Based on the Chancellor's statement this morning that Iceland has refused to honour even its minimum compensation commitments, the government should now warn all depositors in other Iceland banks that it will not repeat the bail-out that it's made this morning to Icesave's depositors.

Depositors in other Iceland banks should be told to move their funds back to the UK within a few days, after which ALL compensation schemes covering Iceland's banks should be withdrawn.

The Icelandic government shouldn't be allowed to get away with this without suffering serious consequences.

blizeH

I've just withdrawn my money from Kaupthing, but had to leave quite a bit in unfortunately as it's a fixed rate account. D'oh.

Andrew64

I've just withdrawn my money by CHAPS from KE. I took the hint from AD. But what finally prompted me is the fact that Kaupthing Sweden is in trouble:

http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSSAT00566720081008

going2die_rich

Shouldn't every government around the world warn it's citizens to withdraw it's money from every Icelandic bank?

After all, if we are first in line and they can't pay us, how are they going to pay anyone else after us?

Bromley86

Now that the novation issue has been fixed, savings in Kaupthing-Edge are as secure as those in any other UK bank.

That's not to say that KE won't go under. I suspect that the Icelandic government will try desperately to prevent it, but the interesting thing I got from one of their PM's speeches yesterday was that he was primarily interested in protecting the domestic banking system from collapse.

Megalomaniac

I withdrew my money from Kaupthing yesterday. And have just withdrawn a payment of £300 I made to the account on Monday. I get paid quarterly and put the money I live off in there and make monthly withdrawals from that. IF the bank was to also go in the same way as Landsbaki, I would be up sh*t creek without a padel, and not be able to survive.

Especially when I had my ISA with Icesave...!

Megalomaniac

p.s - I left a pound in there, just in case everything goes well and there is a remarkable turn around in Icelands economy. I think I could suffer the loss of a pound for a few months.

227_BHA

I withdrew all my £34k from KE yesterday morning by BACS (wish I had used chaps now, not realising the urgency).

As this is now in the system am I safe or should I worry until the money actually appears in my Abbey account tomorrow or Friday?

nzseries1

I always said that KE was a safe bet, and I'm planning on leaving my money in KE, but I agree with this thread - that's disgraceful of the Iceland government.

If my money wasn't in a fixed rate account I would be removing it (removing it out of principle, not because I'm worried about the state of the bank). But I'm not prepared to lose 1% interest on my savings which have been saved since June.

nzseries1

227_BHA wrote: »

I withdrew all my £34k from KE yesterday morning by BACS (wish I had used chaps now, not realising the urgency).

As this is now in the system am I safe or should I worry until the money actually appears in my Abbey account tomorrow or Friday?

Why should you worry? There's been no announcement that KE is having trouble! And, the savings are guaranteed to £50k by the UK government!

ic

valiant wrote: »

the government should now warn all depositors in other Iceland banks that it will not repeat the bail-out that it's made this morning to Icesave's depositors.

And as such induce a run on the bank?! This is madness, and you know it. I realise that there are many people here with a lot of money saved up, and that this is both a worrying and emotional time. However people need to step back and see the bigger picture that the government's job is to stabilise the system, not make it worse. KE is wholly covered by the UK scheme, so 50K is protected - regardless of what the Icelandic goverement does.

As an aside, if the government did tell people what they should do with their money, the next thing we'd hear would be complaints about the nanny state telling us what to do. Ultimately they'll always say one thing, seek advice and weigh up the pros and cons of any options - its your money, do with it what you will.

If people aren't happy with what the governement is doing they should contact their local MP and voice it that way. Posting here for Martin to grow a pair won't achieve much.