ING Direct uk,to acquire KE Deposits

Cannon_Fodder

I know the first reaction for me was "Dutch!?"...

But thinking for a minute, is the FSCS REALLY in a much better place?

Promising to invest billions in all the UK Banks, trying to repay (and maybe sue to get money back from Iceland Govt) Icesave depositors, reducing tax receipts as recession hits and unemployment grows, etc - will the Govt have the money to loan to the FSCS without either taxing us even further, or creating hyper-inflation through printing money?

Would like to see Iceland print some money and wreck their economy, at least as much as we look like doing.

I actually work for a Dutch firm, and to be honest its the UK arm of the group who are incompetent, stuck-in-the-70s, poor management etc. The only sense comes out of the Dutchmen...

nzseries1

Thinker wrote: »

.. This position presumably wouldnt change with a buy out by ING.

Thinker, I beg to differ. Look at Santander and B+B.

occamsrazor

Even if Kaupthing Edge UK is sold to ING, it could well continue under the Kaupthing Singer & Friedlander UK license, and therefore be fully covered by FSCS £50K guarantee, without the passport scheme.

nzseries1

occamsrazor wrote: »

Even if Kaupthing Edge UK is sold to ING, it could well continue under the Kaupthing Singer & Friedlander UK license, and therefore be fully covered by FSCS £50K guarantee, without the passport scheme.

Yes, and on the other hand, it could well not. I'm therefore going to worry until we know for sure.

cwcw

Thinker wrote: »

For Coolio - KE Login is fine. don't panick. CWCW - I would remind you and all KE customers are covered fully by the FSCS as KE is a registered UK bank. This position presumably wouldnt change with a buy out by ING.

I'm not a KE customer, I was an Icesave customer. However if I was a KE customer, my first concern would be how an ING buyout affected the compensation scheme.

Reaper

This sounds like a good thing to me. People seem to have forgotten that before Icesave went down the city was convinced that Kaupthing was about to go bust, with their CDS rate becoming astronomical.

ING is a much safer bet. Remember though:
1) You will now be with a bank that uses the "passport exemption"
2) The compensation rates have just gone up to €100,000 (approx £77,700)
3) The FSCS "top up" no longer applies because it exceeds the £50,000 level, so in theory the UK now has no obligation to pay out anything if the Dutch fail to BUT everything that has happened so far suggests they would.

EDIT: Unless they keep it trading as a separate banking entity as suggested by others in which case it may still be under the FSCS directly

Thinker

There is no reason to merge Banking licences, but we dont know yet. I anticpate KE remaining a UK licensed bank under the FSCS.

nzseries1

Cannon_Fodder wrote: »

But thinking for a minute, is the FSCS REALLY in a much better place?

Better the devil you know than the devil you don't?

sirhobo

I just got through to KE on the phone and the adviser told me that he couldn't comment on "media speculation" and to wait for official confirmation. Based on his comments, all customer services representatives have been told to issue a "No Comment" response until then

qwe3333

some relief. lets hope it works out okay.