Now that KE is ING

Jim_B_3

ING is not a bad bet at all in the current situation, going by this purely anecdotal piece of evidence I dug up.

In the US, they issued 100000 mortgages or so. They selected people both likely to stay in the house themselves and likely to pay off the loan. I understand they've suffered 15 defaults. Not 15%. 15 in total.

Now, these numbers are awfully round and where I found them didn't have any financial references to supply corroboration, but all the same, if it's true it sounds like ING Direct is not nearly as exposed as some institutions.

Sorry, minor digression there. As you were!

~Chameleon~

Call me naive, but I've only just discovered that ING is covered under the Dutch compensation scheme. Having just been burned by the Icelandic fiasco I'm obviously concerned about this, although the amounts I have invested in both KE and ING are a far less amount than I had in Icesave.

Am I right to be concerned or am I just being paranoid after everything that's happened this week

I'm very tempted to withdraw the funds and just close the accounts for peace of mind. Don't worry, there isn't enough in there to cause any impact on ING's assets

AlanW_2

I have to agree ING looks good. Presumably the government chose them for a good reason. Was the Banco Santander aquisition of B&B savers also a government choice?

Although it seems bank solvency is hard to judge, except in hindsight, we have some pretty good hints from the government about ING and Banco Santander subsidiaries.

~Chameleon~

AlanW wrote: »

I have to agree ING looks good. Presumably the government chose them for a good reason. .

So my earlier wobble is just pure paranoia then?

AlanW_2

~Chameleon~ wrote: »

So my earlier wobble is just pure paranoia then?

Well, the FSA/FSCS now has no exposure to the KE savers. Looking at where the FSCS gets its money for compensation it would appear the government has just passed the buck to the Dutch. So maybe I'm paranoid now.
:eek:

Jim_B_3

AlanW wrote: »

Well, the FSA/FSCS now has no exposure to the KE savers. Looking at where the FSCS gets its money for compensation it would appear the government has just passed the buck to the Dutch. So maybe I'm paranoid now.
:eek:

The Dutch are not thick, and given the current state of things I can't help but think that ING would have told the chancellor where to go in no uncertain terms if they thought taking over KE would put them at risk of a collapse.

Unless there's some way the UK government can force a bank to take over another? I'm certainly no expert.

Caudle

Now that KE is ING

.............. I have pulled my money out from BOTH of them!

No more foreign banks for me, for the foreseeable future. At least with a UK bank you can be pretty sure the UK government would nationalise them (fully) if there is any sign of the bank going belly up.

Bromley86

Has anyone seen a study on the exposure of the two different compensations schemes to risk?

The UK population is 60m vs 16m in the Netherlands. GDP is $2.7b vs $0.7b. But if the Dutch compensation system is exposed to less than 25% of the amounts that the UK system is, then there's really no difference.

Jim_B_3

Bromley86 wrote: »

Has anyone seen a study on the exposure of the two different compensations schemes to risk?

The UK population is 60m vs 16m in the Netherlands. GDP is $2.7b vs $0.7b. But if the Dutch compensation system is exposed to less than 25% of the amounts that the UK system is, then there's really no difference.

0% is less than 25%, and that sounds pretty different to me. Is there a typo in here somewhere?

poppy10_2

Does anyone know what is happening with the fixed term deposits yet? Are they covered the same as the ordinary savings accounts, and when will be able to break them and withdraw the money?