Where is the Money Comming From

planemad

All of us Icesaver customers are getting their compensation (me including).

I know that the FSCS are dealing with the compensation but where is the money actually coming from?
Do all banks have to pool in? HM Treasury?
Are the assets of Landsbanki still frozen in the UK?

I just wonder how the scale of £billions can be pulled together in weeks.

halight

I think the money at the moment is coming from our Gov. And thay in tuen will claim it back from iceland.
I also think that the assets of Landsbanki are still frozen. I have not heard anything for awhile about this but i think thay will be staying that way untill our Gov get the money back.

If i am wrong im sure some knid person will be able to put this right.
all the best

ScarletBea

I think that all banks covered by the FSCS pay a certain amount or % regularly to cover for these situations, a bit like an insurance policy, isn't it?
That's why we have the £50k limit.

Blah99

The FSCS is funded by a "tax"(/charge/subscription/whatever) on FSA-regulated companies. However the Government is funding the shortfall between the FSCS compensation limit of £50k and whatever retail depositors have in Icesave.

The UK Government is still pursuing Iceland for the cash. The press is awaiting a statement from Kerry Katona.

qamwc1

The answer is here:

http://www.fscs.org.uk/industry/

opinions4u

1) First £16k per customer is coming from Iceland (who will be lent the money by our government).

2) Next £34k will come from the FSCS. Which is empty. So will be lent the money from our government and it will be repaid, with interest, by banks, building societies, financial advisers and similar in the future.

3) Anything over £50k will be coming from our government. Borrowed. To be repaid, with interest, by future taxation.