Very worrying stop press news re Anglo Irish

baby_boomer

Maybe if we didn't have these 100% guarantees, we wouldn't have invested in dodgy overseas banks in the first place - egged on by financial sites like MSE which emphasised the guarantees.

The guarantees - paradoxically designed to ensure stability - may have meant that the bad banks and the international risks grew faster.

Now we're all worse off because the bail-outs are having to be paid for by levies on the good banks and building societies who we shunned because they didn't offer the top rates.

And are going to be offering lower rates for the next decade as a consequence .

soulsaver

JP45 wrote: »

Interesting article in the Daily Telegraph about the current situation facing Ireland, in which the German Finance Minister acknowledges that other EU states would have to rally round in the event of an EU member facing insolvency. Although as the article points out, CDS rates on Irish debt actually increased despite the Minister's comments, so the markets clearly remain sceptical. Link to article:

http://www.telegraph.co.uk/finance/financetopics/recession/4682531/Germany-may-rescue-debt-laden-EU-members.html

Well if the report is verbatim he did single out Ireland as 'in very difficult circumstances'.. that was helpful.

soulsaver

baby_boomer wrote: »

Maybe if we didn't have these 100% guarantees, we wouldn't have invested in dodgy overseas banks in the first place - egged on by financial sites like MSE which emphasised the guarantees.

Now we're all worse off because the bail-outs are having to be paid for by levies on the good banks and building societies who we shunned because they didn't offer the top rates.

Yep you're right - we'd have stuck with Halifax, Alliance & Leicester, B&B, Cheshire BS, Derbyshire BS, Scarborough BS, Northern Rock, RBS, BMids, AA, SAGA, Nat West, IF, Heritable...:huh:

gozomark

soulsaver wrote: »

Yep you're right - we'd have stuck with Halifax, Alliance & Leicester, B&B, Cheshire BS, Derbyshire BS, Scarborough BS, Northern Rock, RBS, BMids, AA, SAGA, Nat West, IF, Heritable...:huh:

exactly - many of the banks in difficulty are actually good banks, or atleast OK banks, which have been hit by a perfect storm

Interested_Taxpayer

Andrew64 wrote: »

I think we should regard that as the risk premium!

They offered me 4.3% the phone for further year but only 2.90% on the Maturity form.
Time to pull out and get back to the UK!

soulsaver

Interested_Taxpayer wrote: »

They offered me 4.3% the phone for further year but only 2.90% on the Maturity form.
Time to pull out and get back to the UK!

Yep they had 4.3 available as a maturity bonus offer with time limited availability - so nothing strange there then.

WD40

http://www.independent.ie/business/irish/irishowned-banks-liabilities-to-reach-combined-total-of-8364575bn-1643139.html

All the doom-mongering is beginning to get to me. My mother received notification on Tuesday that her £95K had cleared into AI. Is there a 'cooling off' period, i.e. do they let you have your cash back, no quibbles, within a certain period? If there isn't then I guess I'll sit back and see if Ireland's credit rating goes downhill... If it does, I'll get her to write a letter requesting the cash back. However, at this point, the bank will be in the midst of a run, right?

If she lost this cash she'd be in all sorts of trouble, the house would definitely have to go. She's blissfully ignorant to the situation. I really don't know what to do.

Midnight_Cowboy_2

WD40 wrote: »

http://www.independent.ie/business/irish/irishowned-banks-liabilities-to-reach-combined-total-of-8364575bn-1643139.html

All the doom-mongering is beginning to get to me. My mother received notification on Tuesday that her £95K had cleared into AI. Is there a 'cooling off' period, i.e. do they let you have your cash back, no quibbles, within a certain period? If there isn't then I guess I'll sit back and see if Ireland's credit rating goes downhill... If it does, I'll get her to write a letter requesting the cash back. However, at this point, the bank will be in the midst of a run, right?

If she lost this cash she'd be in all sorts of trouble, the house would definitely have to go. She's blissfully ignorant to the situation. I really don't know what to do.

If you are that worried, you should check the Terms & Conditions of the account you opened. For my Anglo Irish fixed bond, there is no cooling off period (but check your own T&Cs as they may differ).

If you have no cooling off period and you ask to withdraw the money, they may levy the 60 days interest penalty (at their discretion). So, if you withdraw immediately, you may get back less than you paid in (although it may be worth it if it means less sleepless nights). If you can bear to sit tight for two months, then you should at least get back everything you paid in, even if it is without interest.

jack_spratt_2

WD40 wrote: »

http://www.independent.ie/business/irish/irishowned-banks-liabilities-to-reach-combined-total-of-8364575bn-1643139.html

All the doom-mongering is beginning to get to me. My mother received notification on Tuesday that her £95K had cleared into AI. Is there a 'cooling off' period, i.e. do they let you have your cash back, no quibbles, within a certain period? If there isn't then I guess I'll sit back and see if Ireland's credit rating goes downhill... If it does, I'll get her to write a letter requesting the cash back. However, at this point, the bank will be in the midst of a run, right?

If she lost this cash she'd be in all sorts of trouble, the house would definitely have to go. She's blissfully ignorant to the situation. I really don't know what to do.

To be honest if it is spooking you that much I would exercise your get out clause !!
Its never a good idea to put all your eggs in one basket anyway
Coventry have some okay rates at present

WD40

Thanks, MC. If you don't have a cooling off period, I doubt there will be one for my mother. I can bear to wait 2 months - I doubt the proverbial will have hit the fan by then. Her bond is for a year... Will AI be intact in a year? I looked up Ireland's credit rating at the S+P website. It says, although their rating is still AAA, that their currency outlook is 'negative' - is that the same thing they refer to as 'negative watch'?

If Ireland's rating goes down, I predict a run.