nervous newby got 2nd icesave email

planemad

I doubt that will happen but I may be wrong, who protects the FSCS?

gozomark

planemad wrote: »

I doubt that will happen but I may be wrong, who protects the FSCS?

1. the banks
2. the Govt ie you and I

agsnu

The FSCS hasn't got enough funds to pay all of the current claims. It has taken out some large loans from the Bank of England to finance them, and the intention is that these will be recouped via future levies of regulated firms.

sheilanick

agsnu wrote: »

The FSCS hasn't got enough funds to pay all of the current claims. It has taken out some large loans from the Bank of England to finance them, and the intention is that these will be recouped via future levies of regulated firms.

That's quite worrying really, since the banks themselves are struggling, any increased levy would further undermine their position.

agsnu

sheilanick wrote: »

That's quite worrying really, since the banks themselves are struggling, any increased levy would further undermine their position.

The levies are capped. It may be some years before the fallout from the current kerfuffle is all repaid.

grnglide

agsnu wrote: »

The levies are capped. It may be some years before the fallout from the current kerfuffle is all repaid.

Maybe so but in the meantime the Government lends to FSCS.

If another institution fails so FSCS cannot pick up the pieces we are all in trouble.

To me FSCS is the safest bank for IceSave FTBs!

dunstonh

sheilanick wrote: »

That's quite worrying really, since the banks themselves are struggling, any increased levy would further undermine their position.

The levy increase is being passed to all FSA authorised firms. Stockbrokers, IFAs, insurance companies, mortgage brokers and possibly even car dealers and any other firm that has FSA authorisation for trading in insurance sales.