Confirm Kaupthing and ING DEAL

soolad

Does this deal mean people that have money with icesave will get there money from ING or will have to claim from fscs as stated by the MSN Dan ((which was part of Landsbanki, which also owns Icesave).

trashcan_2

http://www.moneywise.co.uk/news-views/2008/10/08/ing-acquires-icelandic-saving-accounts

agsnu

pompompo wrote: »

Hi Gwhiz, sorry would you mind pointing me in the direction of the other thread you refer to?

http://forums.moneysavingexpert.com/showthread.html?t=1205063&page=6

soolad

Just spoke to kaupthing customer service and they just taking information but from wat i understand they cont. operation as ING soon.

But when is still the question, So if anyone has the answer wil be much appreciated.

agsnu

soolad wrote: »

Does this deal mean people that have money with icesave will get there money from ING or will have to claim from fscs as stated by the MSN Dan ((which was part of Landsbanki, which also owns Icesave).

The situation regarding Landsbanki/Icesave is still not clear. ING have not purchased the retail deposits held through Icesave, only through Heritable Bank (which was a fully separate UK bank). If you have deposits held through Icesave, it looks like it will be FSCS at this point in time.

philadam

greggp wrote: »

Does anyone have any further news on Kaupthing Edge savings, don't wish to panic but got 30k or so invested. Will it be a case of applying for the money or will the bank continue to operate as normal under new ownership?

I'm guessing that ING will take over the operation of the accounts and to all intents and purpose there's nothing for us savers to do except look out for suitable information on the old KE website portal. I'm hoping it's just going to be business as usual (hate that cliche, but it's pretty descriptive).

Phil

Baldur

soolad wrote: »

Just spoke to kaupthing customer service and they just taking information but from wat i understand they cont. operation as ING soon.

But when is still the question, So if anyone has the answer wil be much appreciated.

See the main site http://www.moneysavingexpert.com/savings/safe-savings#iceland

As soon as we have any more details of which type of protection will apply to deposits which were in Kaupthing Edge, they will appear here.

wheelz

The full statement so that you can read it here, the site was busy so thought it useful for others to copy it here.



08 October 2008
Kaupthing Singer & Friedlander

1. Acting on the advice of the Bank and FSA, and in light of announcements made by the Icelandic authorities in recent days, the Chancellor has taken action today to protect the retail depositors in Kaupthing Singer & Friedlander, a UK-based banking subsidiary of Kaupthing Bank. He has taken this action to ensure the stability of the UK financial system. Savers’ money is safe and secure.
2. Kaupthing Singer & Friedlander (KSF) is regulated by the FSA. The FSA has determined that Kaupthing Singer & Friedlander no longer meets its threshold conditions, and is likely to be unable to continue to meet its obligations to depositors. The FSA concluded that KSF is in default for the purposes of the Financial Services Compensation Scheme. The Treasury has used the Banking (Special Provisions) Act 2008 to ensure a resolution that preserves financial stability and provides protection and continuity of business for depositors.
3. KSF’s Kaupthing Edge deposit business has been transferred to ING Direct, a wholly-owned subsidiary of ING Group, which operates through its branch in the UK. ING Direct is working to rapidly ensure that it is business as normal for all customers.
4. This action by the Tripartite Authorities protects savers’ money and provides certainty for retail depositors. The transfer of the retail deposit books has been backed by cash from HM Treasury and the Financial Services Compensation Scheme.
5. The remainder of Kaupthing Singer & Friedlander business has been put into administration. Any retail depositors eligible to claim under the Financial Services Compensation Scheme whose business has not been transferred to ING Direct will be paid out in full through the Financial Services Compensation Scheme.
6. This is the right course of action to protect savers, ensure financial stability, and safeguard the interests of the taxpayer.
Notes to Editors

1. These notes set out in further detail the arrangements announced today by HM Treasury to safeguard deposits with Kaupthing Singer & Friedlander (KSF).
2. By orders made under the Banking (Special Provisions) Act 2008, all deposits with KSF that relate to Edge accounts have been transferred to ING Direct.
Deposits with KSF other than Edge Accounts

3. The government will ensure that all retail deposits with KSF, which do not relate to Edge accounts (non-Edge retail deposits), will be repaid to depositors who are eligible to claim under the Financial Services Compensation Scheme, including in respect of deposits in excess of the £50,000 limit under the Scheme, with the government covering deposits in excess of the FSCS limit.
4. The Financial Services Compensation Scheme working with the administrator of KSF will endeavour to contact these individuals and make payments to them as soon as possible.
5. All non-Edge retail depositors will receive payments of the gross amounts of the balances on their accounts.
6. Retail deposits for these purposes means the credit balances on Kaupthing Edge Savings Accounts and Kaupthing fixed term deposit accounts held by persons who are eligible to claim under the FSCS (such persons include most private individuals and some small businesses and charities; for further details, please see Chapter 4 of the FSA’s Compensation Sourcebook or the website of the FSCS (www.fscs.org.uk )).
7. It will be a condition of payment under these arrangements that a non-Edge retail depositor must assign his claims against KSF to FSCS or to such other person as HM Treasury may require, which will account to HM Treasury for recoveries, which it makes as a result. No further sums will be paid to such non-Edge retail depositor.
8. These arrangements supplement, but do not replace, the FSCS (which covers in full the first £50,000 of financial loss in respect of retail deposits).
ING Direct

9. ING Direct N.V. is a wholly-owned subsidiary of ING Group N.V., the Dutch holding company of an international banking and insurance group, with branches in London and elsewhere. The group has over 85 million customers worldwide, and is one of the 20 largest financial institutions in the world. 10. ING Direct already has over 1 million customers in the UK using its online banking services.
FSCS

11. The FSCS has financed its payout through a loan from the Bank of England.
12. The Chancellor of the Exchequer today restates that the Government stands behind the FSCS, so that it can be relied upon to be able to play its role in meeting future claims that arise.
Non-media enquiries should be addressed to the Treasury Correspondence and Enquiry Unit on 020 7270 4558 or by e-mail to [EMAIL="public.enquiries@hm-treasury.gov.uk"]public.enquiries@hm-treasury.gov.uk[/EMAIL] This Press Release and other Treasury publications are available on the HM Treasury website hm-treasury.gov.uk For the latest information from HM Treasury you can subscribe to our RSS feeds or email service . Media enquiries should be addressed to the Treasury Press Office on 020 7270 5238.

J..

Going by the above, I assume we should be able to access our funds again within days rather than months?

What would stop business continuing as normal for an extended period of time?

wheelz

I only decided a few weeks ago to open a savings account with Kaupthing Edge. It was close between ING and Kaupthing Edge, the two with the highest interest rates at the time. So I went for KE and now it seems I'm going to be with ING after all.