Icesave compensation payouts... how to keep the pressure up

Scooby64

easteregg wrote: »

What about the thousands of savers who were transferred from Kaupthing Edge to ING Direct which is a foreign bank and not even backed by the FSCS ? NBS is a building society, still backed by the FSCS and owned by its members, so I see no problem with the suggestion and I would definately support it.

You're assuming that the government just "gave" the business to ING - not the case. Several financial institutions were involved in discussions and ING's proposal was accepted partly on the basis of least cost/risk to the treasury and partly because of the ease of transfer plus other undertakings.

Note they haven't dropped the KE rates yet which are much higher than ING savers get

Scooby64

nilrem wrote: »

TBH I don't think that is quite fair! Many of us placed our savings in an Icesave Fixed account when Icesave was perceived as a very safe haven for our money, we were told (by lot's of Financial places and people) that it had in fact a better guarantee than many of the British banks because it had extra protection from Iceland a very rich country! Don't forget it is only recently that they started advising people too split their cash up and it was not possible for many of us with fixed savings.

It is easy to be wise and hindsight is a wonderful thing, many of us have had a worring few weeks and it is has not helped by smart alecs telling us how stupid we were!

That's why I said daft as oppose to stupid - we all do daft things from time to time - the stuff that when we realise the (minimal) gain vs the massive downside we think What the Hell was I thinking!!!!

The scheme only covered £35K (now £50K) and it was widely publicised. I think savers with more than £50K dodged a bullet there which may not happen again. I'd advise anyone not to have more than £50K in one place unless they are prepared to lose it

PS Iceland never was a rich country, but I take your point that some people may have had funds locked into Icesave from a year or two back when the issue wasn't considered

bryanb

LesU wrote: »

OK. I should have qualified 'banks'. I certainly didn't start worrying about my savings when Barings went under.

OK Let's call a truce. BB

Scooby64

dougk wrote: »

So the merger of HBOS and Lloyds (forced through in principle), Abbey and A&L, Nationwide and the BS (Which my I can't remember) are not unfair competition then?

If not NBS then it should have been transferred Direct to Northern Rock seeing that is nationalised and run with our money and the money spent to sort out the icesave mess is our money.

Lets face it NBS don't pay the best rates so a lot of people would have moved their funds anyway so I don't buy the "unfair competition" argument - also where have the other banks been in trying to help (any one of them could have "purchased" icesave).

Secondly a months interest is A LOT of money to some people. even if its £25 it can make a big difference - lack of £25 could quite easily mean £50 of bank charges if you rely on that income , so in reality its a £75 loss which then grows and grows.

The long term solution has to be the better regulation of foreign banks with UK branches or UK activites and probably the scrapping of the passport scheme with compenstion schemes actually having the funds in them , rather than needing to "draw down".At the same time if the top brass at finiacial institutions were personally liable for any loses (eg their house and savings are taken upon loses being made) then I am sure you would see the industry being run in a different way.

Not sure where to start here:
None of the mergers you mention were "forced through" - all the major financial institutions were involved in the dialogue, and some either didn't want the business or not prepared to offer as good terms as the eventual winner. It isn't that it's bad business, just that it doesn't make as good a fit with their opperations.

A month's interest is NOT a lot of money to anyone compared to the alternative of losing the lot! - In effect you are losing 0.4% of your capital, but bearing in mind that Icesaves's rates were AT LEAST 0.4% better than anywhere else, and in the case of the big 4 more like 3% better, as long as you had you money in Icesave for between 1 month & 1 year, you haven't lost any more than you would have done if your money had been in a top 4 bank.

People need to understand what compensation is - If you were a traveller stranded when XL went bust, you should be happy if someone steps in to fly you home, you shouldn't be compaining that the food was cold and you've already seen the inflight movie!

Agree about the passport scheme - I think its days are numbered although we may have to accept EEC member schemes under EU law?? - the FSA also need to grow a pair and start really regulating what is going on

Scooby64

oldagetraveller wrote: »

That'll not please the Wilsons, however it's a logical solution similar to boarding a 'plane but some people can't adhere to the instructions so there will be some "queue jumpers".
I've just changed my name by deed poll to AAAAAAAAA as a precaution!

I think the "phasing" hinted at may well be aimed at those with fixed term deposits. It wouldn't surprise me if they have to wait until maturity, and that is why they are talking about paying them the interest which would have been due at maturity, because they'll have to wait

Rep_2

zoebel wrote: »

So...what about the 1 month plus lost interest?

Despite all the concerns about lost interest there does not appear to be any acknowledgement of the benefit of interest compounding. If our money is returned with interest paid up to the 8th, this money can be re-invested and we will then be earning interest on the interest that has effectively been received early. Not the ideal position admittedly, but it does improve an unsatisfactory situation somewhat.

Scooby64

oldagetraveller wrote: »

Good, I didn't want to be too flippant because there are still obviously a lot of worried people, with a stack of money frozen, in spite of what the FSCS have said.
I, like many, will only be completely easy when ALL the deposits have been returned - mine included to the tune of £35000 + a few pennies.

I think flippancy is good - there is no risk, the money will be back by Christmas and like watching a horror film, it might be scary but you're not in any real danger.

There are too many people on this site that enjoy winding up those who are concerned instead of offering honest practical advice.

Scooby64

Rep wrote: »

Despite all the concerns about lost interest there does not appear to be any acknowledgement of the benefit of interest compounding. If our money is returned with interest paid up to the 8th, this money can be re-invested and we will then be earning interest on the interest that has effectively been received early. Not the ideal position admittedly, but it does improve an unsatisfactory situation somewhat.

Hi & Welcome! - I do agree with you that some people need to stop sweating about the small stuff, but actually you'd be getting compound interest anyway. Banks accrue the interest daily and calculate the next days interest on the "compounded" balance (that's why the AER is higher than the gross)

StarRover

Scooby64 wrote: »

You are clearly a "glass half empty" person - this site has 3 types of users
1. People looking for answers and advice
2. People trying to offer answers & advice
3. Perverse individuals whbo take pleasure from idiotic scaremongering

I think we can see where you fit

4. Pompous windbag.

I think we can see where you fit.

meanmachine_2

Scooby64 wrote: »

You are clearly a "glass half empty" person - this site has 3 types of users
1. People looking for answers and advice
2. People trying to offer answers & advice
3. Perverse individuals whbo take pleasure from idiotic scaremongering

I think we can see where you fit

The opinion of someone who's been on this site since, let me see, October 2008, is pretty worthless to me, I'm afraid.

I have thousands stuck in Icesave. I trust no one until ACTION is taken.

Don't be so patronising, or gullible.

As I say, I'll happily thank those once our monies have been returned.

Until then I remain extremely cautious. I recommend EVERYONE behaves the same.