Transfer our Icesave cash to Northern Rock

sadabbott

Why can't our Icesave cash be transferred to Santander or Northern Rock? This is what happened for other bank failures.

MIKELSOK

Must agree, its the waiting till a firm robust decision on what the process is for Icesave customers. Given that £4Bn of assets have been frozen by HM Govt they can pays us out of that can't they?? and asap...Why not? I hear many ask.

:T

LesU

As Northern Rock is completely nationalised, there was an agreement with the rest of the banking industry and Europe to cap NR's deposits at a maximum level. Otherwise, they would have an advantage over the private companies that are still operating. They are virtually on that limit now.
What happens to that agreement now that several other banks are in the process of being wholly or partly nationalised remains to be seen.

agsnu

Primarily because Icesave is an Icelandic company, therefore the Government has no legal right to transfer (some of) their obligations to another entity.

isofa

As agsnu says.

Because the UK Government and any other UK organisation hasn't brought out / taken over Icesave - which is Icelandic, not UK.

Icesave, part of Landsbanki Iceland collapsed and crashed, and no UK organisation is going to buy it, even if they could, they wouldn't, it is bankrupt.

NR and B+B were nationalised to protect UK funds and savers in UK organisations.

thumshie

Also one of the other main reasons is that this is the first that was in the 'passport' scheme, whereas all the others were fully covered by FSCS. For the UK government to pay out now without trying to get the Icelandic government to pay first would IMHO weaken their hand at ever getting the money Iceland should be stumping up.. Thus until there is an agreement - including all the paper pushing that will need to be done - no-one will see a penny.