!00% for Iceland savers but??

dunstonh

Talk is cheap ..Who is covering those debts ...The government

The Govt is covering it but it passing the liability to the FSCS in the form of a loan. A loan that will be paid back by all FSA authorised firms (and the sale of any net assets that can be recovered).

If the Govt was to come out and say all UK savers were 100% protected then it would lose credibility in the same way Ireland has or if iceland were to suddenly offer it. You cannot guarantee something that is not affordable. It would be like you saying you will guarantee the mortgages of everyone in your town. Easy to say but you cant actually do what you say.

itsmickdundee

The government protects 100% of depositors money in all registered banks within the British Isles.

It just won't say this yet as politically, it wouldn't go down too well with our European neighbours (or the entire Westernised world) due to it making our country look a lot safer economically than anywhere else (massive inbalance - not good with interlinked world-economies) and also they don't quite know how bad this will get, so the 'liabilities' have been capped at £50k, just incase they need to start bailing out millions of people, rather than a few hundred thousand and the government really does start to run out of money. We don't want to see Weimar Germany ever again, especially in the globalised world of the 21st Century... So if it did come to this, printing extra money cannot be a solution in which case it's game over either way in the worst case scenario. Enter the Great Depression again...

As mentioned above, Northern Rock, B&B, etc have followed the same fate as Icesave.

Many people had over £50k (or at the time, 35k, the maximum of the old compensation scheme) saved with these banks, yet no one lost a penny.

So your rant is completely baseless. Icesave savers are not getting preferential treatment, it's just the logistics of returning everyones money is slightly different as our government cannot nationalise a foreign-owned bank, otherwise Icesave would have ended up just like B&B or NR - nationalised.

Please try and read up on this a little better before commenting on it. Or getting het up over absolutely nothing...

Also understand that no government will let anyone lose any money, because I can assure you as soon as they do, the money lost will be the least of your worries... If it gets to this, the entire economy of the Western World would quickly unravel and finding food - or a gun - might be more of a pressing issue...