Lost money through Icesave?

PayDay

Heyman wrote: »

In fact, while I'm about it (and I know this is off-topic) -

We've had a lot of talk here on the House prices board about people being annoyed about how the government is bailing out banks and the bubble they (along with the government) created, with taxpayers money.

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????

Don't get me wrong, I feel for people who have their life savings in there, but it annoys me that yet again this falls to the taxpayer to sort out.

New Labour have a habit of bailing out the financially illiterate. Those that can't pay their mortgage and didn't take mortgage protection and those that only saw the interest rate and ignored all the warnings about Iceland that have been in the public domain for the last few months.

monkeymaster

PayDay wrote: »

New Labour have a habit of bailing out the financially illiterate. Those that can't pay their mortgage and didn't take mortgage protection and those that only saw the interest rate and ignored all the warnings about Iceland that have been in the public domain for the last few months.

See my post above - they were licensed by the FSA whose sole job it is to regulate and monitor banks. If they didn't even warn about Ice Save, why should the average man in the street who doesn't follow CDS's and credit ratings be expected to know any better?

Heyman_2

Thanks for all your sobering posts, has definitely calmed me down a bit on the issue and made me see reason. I know it's probably the best thing that could have happened, given that the alternative - a £4.5bn savings hole with people's life savings etc down the tubes - would have been all the more horrific.

As someone quite rightly said here, the whole situation at the moment is one huge mess and I guess unfortunately it's going to require these sorts of measures to keep things afloat. Just hope the UK doesn't run out of money.

Also - apologies to the OP for derailing your thread!!!

PayDay

monkeymaster wrote: »

- they were licensed by the FSA whose sole job it is to regulate and monitor banks. If they didn't even warn about Ice Save, why should the average man in the street who doesn't follow CDS's and credit ratings be expected to know any better?

Don't you read the papers? Or the savings board? There were plenty of warnings given months ago and even more warnings given recently. The high interest rate being offered reflected the risk of the investment, but somehow it now seems, people didn't realise this. Hence my comment about the financially illiterate.

Bailing out these investors is no different to the government's recent offer to bail out some home owners.

monkeymaster

PayDay wrote: »

Don't you read the papers? Or the savings board? There were plenty of warnings given months ago and even more warnings given recently. The high interest rate being offered reflected the risk of the investment, but somehow it now seems, people didn't realise this. Hence my comment about the financially illiterate.

Bailing out these investors is no different to the government's recent offer to bail out some home owners.

You don't answer the key point that the body in this country responsible for this is the FSA who never warned anyone. There is all sorts written in the papers, most of it rubbish. When tabloids are a more reliable source of information than the authorities we're in trouble!

Interest rates constantly change and it's too simplistic to say high interest rate = highest risk. It depends on the strategic goals of that institution at that time. Having savings in normal times should not carry a risk - I'm sure you'll agree these aren't normal times and if people believe there is any risk to their deposits there will be a run on every bank which will destroy our economy, hence the Government taking action.

PayDay

monkeymaster wrote: »

You don't answer the key point that the body in this country responsible for this is the FSA who never warned anyone.

Why should they have to warn you about your investment? Would you expect to be warned if the shares you bought were about to drop?

This is loosely how investments work. The higher the reward = the higher the risk. If you want safe, then go for a lower reward.

Did you just put money in there because they offered you higher interest rate than say, HSBC savings accounts? Did you do any research before you invested? Did it seriously never occur to you why they were offering more money if you invested in them?

baby_boomer

monkeymaster wrote: »

they were licensed by the FSA whose sole job it is to regulate and monitor banks.

That's not the whole truth. Another of the FSA's jobs is to maintain confidence in the financial system. Withdrawing the license from IceSave would have had severe repercussions.

The FSA must have interesting conversations with itself!

HammersFan

geoffky wrote: »

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,,,

You could get a really nice home for £1 million. At least 10 beds and somewhere nice i would imagine. And a lot more for your money than last year (apparently).

neverdespairgirl

PayDay wrote: »

Don't you read the papers? Or the savings board? There were plenty of warnings given months ago and even more warnings given recently.

Which doesn't help if you have a fixed-rate bond from longer ago than that, does it?

tomstickland

GDB2222 wrote: »

Does MSE have a duty of care to people who may have been misled because part of the investor protection is through an Icelandic guarantee that may not perform?

I bought this bike and it ripped my !!!! off. I'm going to claim compensation.

Courtesy of Modern Toss.