Lost money through Icesave?

wolfman

Heyman wrote: »

Well I think it's SCANDALOUS that Icesave savers, who put their money in an off-shore account are going to be bailed out 100% with taxpayers money. Does anyone else think this is not quite right? Especially as UK banks only have a 50K limit????

In one sense though it's all UK money that is being lost otherwise.

And these are savings accounts, people trying to save. Not someone taking out a 125% mortgage they can't pay.

I personally have 1 cash ISA with them. I did it to spread the load, I have ISA's all over the place. So, it's not a huge loss for me, but it's something I'd rather try and hold on to.

I know it's not very nice for everyone else to have to cover the loss so I can understand the frustration.

But then again, from my perspective, B&B and Northern Rock were both covered. Ok, so it's an Icelandic bank, but it's UK money in there, and savings at that. The people that are losing out are the ones who didn't borrow stupidly, they did the opposite and chose to save (albeit in not the best choice of bank in retrospect).

The dent and loss of confidence it would do to me, and others that have larger amounts could stir anger, rumours etc... that end up costing more than 5 billion. You can see from something as simple as a report by Robert Peston, it can knock 100 billion off the market in one day.

napoleon

All we have to do is threaten to send Kerry Katona back. They won't be long caving in and giving us our money back

moanymoany

I am really pleased that no-one is going to lose their money. I don't care that the 'taxpayer' is going to pay, I think it is right that our Government is protecting Our people!

Neillgb

moanymoany wrote: »

I am really pleased that no-one is going to lose their money. I don't care that the 'taxpayer' is going to pay, I think it is right that our Government is protecting Our people!

Bit of a contradiction really , if the taxpayer is going to pay then somebody is going to 'lose their money' .......the taxpayer!!!!!

Every sympathy for people up to £50K, none for those with more(other than first £50K), they should have been sensible enough to spread their money around.

Examination question in 50 years time...

'Bail out Britain under Brown, a legacy of debt?' Discuss.

GDB2222

neverdespairgirl wrote: »

I don't think Icesave is or was an off-shore bank.

Your OH has one of these accounts - congrats on getting bailed btw. Is teh account with a branch of the Icelandic bank or a subsidiary? I assumed from the fact that the Iceland authorities were involved that it must be a branch.

Sam4u_2

A customer went into his bank.
He asked, "can you give me a loan?"

The manager answered "The same Question I was going to ask you!"

geoffky

Neillgb wrote: »

Bit of a contradiction really , if the taxpayer is going to pay then somebody is going to 'lose their money' .......the taxpayer!!!!!

Every sympathy for people up to £50K, none for those with more(other than first £50K), they should have been sensible enough to spread their money around.

Examination question in 50 years time...

'Bail out Britain under Brown, a legacy of debt?' Discuss.

How can you say people are not sensible because they have not spread it around? try finding a home for a million and you will see its not possible,,,

neverdespairgirl

GDB2222 wrote: »

Your OH has one of these accounts - congrats on getting bailed btw. Is teh account with a branch of the Icelandic bank or a subsidiary? I assumed from the fact that the Iceland authorities were involved that it must be a branch.

As I understand it, a British subsidiary of an Icelandic bank.

OH explained his reasoning last night in choosing where to put his money.

He chose nowhere which he didn't think was safe. In relation to Icesafe and Kaputhingy, he went on the FSA website and saw they were regulated. There was no explanation there of the precise passport claiming thing if Icesafe went tits up, and nothing to suggest that you might not get it and that Iceland's finances determined whether or not you got compensation.

Even bearing that in mind, he decided not to invest in the Banks of India and Nigeria, both of which are FSA registered and protected, because he thought they were more likely to go bust.

The Icesave thing was a fixed-term bond, taken out just under a year ago.

I don't think his actions could really be thought of as rash.

neverdespairgirl

You could stick most in Northern Rock and NS & I and be safe.

monkeymaster

morg_monster wrote: »

I know it sounds ridiculously unfair, and it is, but I'm sure if they do in the end have to bail out Icesave savers over £50,000, they will extend that same cover to customers of all British banks.

At the end of the day, so far they have just nationalised failing UK banks, so no need for the FSCS compensation, everyones ££ is completely safe; I think if any more UK banks fail they will just do exactly the same thing (nationalise)

So you're right to be completely pi55ed off, but I think no customer of a UK bank will lose money.

But as someone else said, their are a bunch of threads about this on the savings forum already. Its an absolute bunfight in there.

Just to clear a couple of inaccuracies that I keep reading:

1. There has been a claim to the FSCS - for Bradford and Bingley - which paid out 100% of all savings and not just those up to 50k. This seems to have missed the radar somewhat as the compensation was paid directly to Abbey/Santander who took over running the accounts and bought the branch network.

2. Ice Save is the UK arm of an Icelandic bank and as such should be monitored by the FSA. In fact the FSA/FSCS covered the difference of deposits between the 16k covered by the Icelandic scheme up to 50k. The FSA had the authority to withdraw it's license and stop it taking deposits should it have deemed it to be unsafe. Needless to say they weren't on the ball (no way!) so it's a bit out of order ordinary savers getting a hard time for having money in there.

I have some sympathy with the argument that people shouldn't have had more than 50k in there (previously 35k) as these limits have been well documented but I'm glad no one has lost their hard earned savings. Rightly or wrongly people expect regulated banks to be safe, we live in interesting times.