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

[Deleted User]

i dont blame any of you for withdrawing your money. Ive been stung by icesave so learnt a lesson there. I will be sticking to UK banks in future.

IT_nerd

funk_punk wrote: »

i dont blame any of you for withdrawing your money. Ive been stung by icesave so learnt a lesson there. I will be sticking to UK banks in future.

I'm sticking to NS&I and Northern rock after this...

valiant

ic wrote: »

And as such induce a run on the bank?!

Exactly so.

What exactly would be damaging to the UK economy (or even the global economy) if there were to be a run on Icelandic banks? In fact, the opposite would be the case. It would send a firm message to other countries during this crisis that they must shoulder their responsibilities.

As it is, if I were a depositor in any other Icelandic bank I wouldn't bet on the Chancellor repeating his bail-out of Icesave depositors. To me, his statement this morning about his disappointment in the Icelandic government, sends a clear message to rate-chasing depositors in other Icelandic banks that sympathy levels won't be as high in any future crisis. As a tax-payer I would be extremely annoyed if there were to be a repeat of this bail-out.

occamsrazor

Kaupthing Singer & Friedlander are a UK Bank, fully signed up and protected by the UK £50k guarantee, and have never been part of the Icelandic (passport) compensation scheme. They have acted sensibly and transparently throughout all of this, and shouldn't be tarred with the same brush as Icesave.
For the Chancellor to tell savers to make a run on the bank would be ridiculous and irresponsible, because in the end the FSCS would have to pick up the bill.

roddydogs

Its all very well quoting the £50,000 BUT how long would it take and wouldnt you lose interest during that period?

wadeall

Given that Iceland itself is effectively bankrupt, its only a matter of time before KE goes under- probably a few days. Iceland has effectively stolen GBP4.5bn from the UK taxpayer through Icesave and will not honour any KE deposits once it too goes bust. From a selfish point of view you may not be concerned as at least GBP50k will be covered by the UK taxpayer, but if you are also a UK taxpayer, you have a moral responibility to reduce the amount the UK is on the hook for by withdrawing your funds as soon as you can.

jp01_2

Exactly!
I was constructing a post on the same lines.

Alistair Darling gave the very broadest possible hint to GET YOUR MONEY OUT OF ICELAND FAST.

The choice of phrase he used on R4 was very illuminating.

'I have decided in these exceptional circumstances and I wouldn't normally do this''
http://news.bbc.co.uk/today/hi/today/newsid_7658000/7658459.stm

about 8mins 30 secs in.

ultra10

blizeH wrote: »

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.

I had a 6 month fixed rate with kaupthing , there T&C's are such that you can move it too a instant access account with a drop in rate ofcourse, ring them and ask as its not something you can do online

going2die_rich

Everyone keeps saying you are protected up to £50k so don't worry. But like some have said, they needed the money for something, or were only saving it and had planned on withdrawing it in the coming weeks.

Any compensation scheme will take weeks to pay out (if not months), thats no doubt after you have filled in whatever forms you need to fill in.

Why have all that hassle when you can just move your money to a bank thats more secure (at least in a more trustworthy country). It might be paying less in interest, but in these uncertain times, surely peace of mind means more than a gaining a few extra pounds.

jp01_2

occamsrazor wrote: »

Kaupthing Singer & Friedlander are a UK Bank, fully signed up and protected by the UK £50k guarantee, and have never been part of the Icelandic (passport) compensation scheme. They have acted sensibly and transparently throughout all of this, and shouldn't be tarred with the same brush as Icesave.
For the Chancellor to tell savers to make a run on the bank would be ridiculous and irresponsible, because in the end the FSCS would have to pick up the bill.

Are we in Alice in Wonderland?

Have we not seen that a govt backed guarantee is worthless.

It isn't irresponisble it is prudent and sensible advice.