ING Direct uk,to acquire KE Deposits

nachovx

Icesave customers in the Netherlands can still log onto their accounts and are trying to withdraw their funds - but even though the transactions are being accepted, they're not all being processed, although some are. I don't know why the Dutch arm was allowed to continue trading, whilst the UK one was frozen? This is from (but it's in Dutch)http://www.telegraaf.nl/dft/2139542/__Weggehaalde_Icesave-gelden_nog_niet_op_rekening__.html?p=2,1

If you want to see the share price of ING over the last year look here (select 'laatste jaar' from drop down) http://www.telegraaf.nl/dft/bedrijven/ing_groep/?tabid=bedrijven&tab=7

codger

Impossible to keep up with the news, or for news media to keep up with it, but assuming that some kind of Treasury-brokered deal has now gone through to allow ING to take Kaupthing Edge (Kaupthing Singer & Friedlander in the UK) and Heritable Bank customer accounts, then KE is now effectively dead.

It may well be that the Treasury is going to have to clarify just what levels of protection / compensation scheme coverage now applies where KE is (was) concerned, because the FSCS won't apply if savings accounts are indeed being migrated to a Dutch-owned bank (ING).

Yet I was under the impression the Dutch compensation scheme was actually superior to our FSCS in that it's around £25,000 more than the £50k max of the FSCS (hopefully someone far wiser than I will come on here with definitive info and an ability to translate Euros into GBP!)

The upshot surely though is that even though confusion still surrounds the fine detail, the fact is that all KE savers are at this moment in safer hands.

The upshot is also likely to be that the FSCS is going to be in somewhat better health thanks to the ING deal. It's all right for Brown to talk of taking action against iceland for recovery of UK depositors' money, but by tonight Iceland is surely going to be a stretcher case: how the hell does Brown think any money at all is going to be brought into the UK's coffers from a country that today went bankrupt?

Far from Iceland returning to Britain the money being paid out here to provide 100% reimbursement of IceSave depositor funds, as likely as not we'll all have to have a whip round to ensure Iceland itself somehow manages to keep its electricity turned on.

yowza

I've put in a call to ING Netherlands – no great expectations they'll ring me back but will update if they do.
My 32K is in limbo. Did a CHAPS withdrawal 11am yesterday Tuesday. Money gone from KE by 2pm (I left £100). Still no money has appeared in my linked bank account by 12.30 Wednesday.

sirhobo

From thisismoney.co.uk


Embattled Icelandic banks Kaupthing Edge and Heritable Bank have handed over all of their UK customers to Dutch bank ING in a deal signed this morning with the Treasury.

Kaupthing Edge, the UK savings arm of Icelandic bank Kaupthing, will hand over 160,000 customers and £2.5bn worth of savings to ING, while Heritable Bank will pass on all of its 22,200 customers and £538m in savings....


....All of these 182,200 savers will now have their deposits covered by the Dutch compensation scheme, which raised its maximum level of compensation yesterday to €100,000 (approximately £77,000) from €38,000. The move came as the EU also enacted legislation yesterday compelling all EU countries to up their national compensation schemes for banks to €50,000.

This marks the end of Kaupthing's short-lived by high-flying presence in the UK savings market: it want straight to the top of the instant access and fixed-rate markets when it began operating here in February of this year, despite being dogged by rumours about the stability of the Icelandic banking industry...

...The irony is that ING customers pulled over £5.4bn of their savings out of the bank over 2006/07 in protest over its poor savings rates. Although the Dutch bank entered the UK savings market in 2003 at the top of the instant access tables, the rates offered to its savers quickly dwindled as higher paying accounts – such as Icesave and Kaupthing Edge – entered the market.

The ING Savings Direct account currently only offers only 4.75% AER for existing customers and 6.5% for new customers, although this contains a 1.66% bonus that will disappear after 12 months. Kaupthing's rates regularly topped 6% on instant access savings, without a bonus.

It is unclear at this time whether customers will be treated as new or existing customers with ING once they are subsumed into its customer base of one million or whether they will be given the opportunity to opt out of the arrangement.

Like Icesave, ING operates under the controversial 'passport' compensation system, where an initial amount is sought from the compensation system of the bank's host government in the event of a banking collapse and is then 'topped-up' by the UK government.

As the level of compensation offered by the Dutch is now higher than in the UK, the entire amount would have to be sought from the Dutch government, in the unlikely event ING were to collapse.

Johan de Wit, ING Direct UK CEO, said: 'ING Direct is in a position of strength. We are very pleased to have been able to take such rapid and decisive action that has provided Heritable Bank's customers, and those of Kaupthing Edge, with the reassurances they need.

'We are working to rapidly ensure that it is business as usual for all customers. We look forward to extending our approach of offering simple and straight-forward products backed by award-winning customer service to our new customers.'
Kaupthing Edge declined to comment while Heritable Bank was unavailable to comment

gomann

Successfully pulled £25,000 from KE on Monday [and log-in working fine here!].

My complication, which others may share in some respects, is that I'm offshore [in Jersey] saving with Kaupthing [IoM = £15,000 protection] which is now owned [possibly] by ING under the Dutch [= ? protection]. Before I start reloading KE once the dust settles, the first thing I'd want to know is whose scheme has primacy!! Am I covered by Iceland, IoM or the Dutch? Or all 3?

[edit = thank you, sirhobo ... cross-posted there!]

christ

Can anyone tell me if the Kaupthing Edge takeover would include Kaupthing Singer & Friedlander Isle of Man?

Baldur

christ wrote: »

Can anyone tell me if the Kaupthing Edge takeover would include Kaupthing Singer & Friedlander Isle of Man?

You are very unlikely to receive a definitive response, as there doesn't appear to be any official confirmation from any of the parties involved yet.

occamsrazor

christ - not sure about this, but suggest offshore savers keep to this thread where we can keep all the info specific to Isle of Man savers together:

http://forums.moneysavingexpert.com/showthread.html?t=1203227

iso_karhu

Humper wrote: »

So what happens if you have a KE AND an ING account? Are they still compensated seperately if they are now in the same bank group? This is getting more confusing by the minute.

An interesting point ... surely it will all be counted as ING ...

... how many, like me, moved their money out of ING Direct to IceSave & Kaupthing in protest at ING's treatment of existing customers in the first place anyway ?

Caudle

I didn't know this but, coincidentally, I have pulled all of my savings out of both KE and ING.

I've kept the accounts open but, just for the time being, no more foreign banks, concerns about the passport scheme, FSCS etc.

All my savings will now be in financial institutions which are under UK control. I don't want to rely on the FSCS (let alone a foreign equivalent) and all the potential delays etc.

It is now very clear that if a UK bank gets into difficulty the government will take direct action.