Very worrying stop press news re Anglo Irish

masonic

cepheus wrote: »

The banks seem to waste a lot of paper providing useless information we don't want, or already know. Why not send us something we need to know such that the underwriter is now the Irish government rather than a combination of UK + Ireland? Perhaps the regulator should require them to do this, it isn't unreasonable.

My understanding is that the Irish Banks liabilities far exceed that of Ireland's abilities to pay, much more so than with the UK situation.

I have over a dozen bank accounts with almost as many different banks. I can't say any of them send me 'useless information'. Few go as far as to even send me statements! If it is down to anyone to inform consumers about the changes to the compensation systems, that responsibility would fall upon the Government or regulators concerned. They did so through the media, just as they have each time they have made a change to any policy that affects the public. Why should this be treated any differently than instances when the Government has made changes to taxes, or pensions, or the law?

melbury

cepheus wrote: »

The banks seem to waste a lot of paper providing useless information we don't want, or already know. Why not send us something we need to know such that the underwriter is now the Irish government rather than a combination of UK + Ireland? Perhaps the regulator should require them to do this, it isn't unreasonable.

My understanding is that the Irish Banks liabilities far exceed that of Ireland's abilities to pay, much more so than with the UK situation.

Oh no, that last sentence has really got me worried again:eek: I just want my life savings to be there safe and sound in November.

masonic

melbury wrote: »

Oh no, that last sentence has really got me worried again:eek: I just want my life savings to be there safe and sound in November.

It's easy to be misled by statistics. For example, 'ZOMG, the UK has the world's third largest current account deficit!!!!' http://en.wikipedia.org/wiki/List_of_countries_by_current_account_balance

cepheus

As a proportion of GDP Ireland looks similar to the UK on these figures, however, I'm not too sure how meaningful the National Credit account is, would this include the liabilities of the private banks?

http://en.wikipedia.org/wiki/File:Current_Account_Balance_%25_GDP_2006.PNG

Talking about fantasy ratings here is S&Ps view

STANDARD POOR’S has downgraded its outlook for the Republic of Ireland from stable to negative, and has warned that the country may lose its “AAA” sovereign credit rating if the Government’s attempts to boost the economy fail to improve growth prospects.

http://www.irishtimes.com/newspaper/finance/2009/0110/1231515468436.html

masonic

cepheus wrote: »

As a proportion of GDP Ireland looks similar to the UK on these figures, however, I'm not too sure how meaningful the National Credit account is, would this include the liabilities of the private banks?

It would include some of them, but this 'worrying statistic' isn't really meaningful at all, because there are such a lot of contributary factors involved.

Back on topic, Ireland's total liability to savers is about €400bn, which is something over double it's GDP, but what assets it has that it could use to meet any compensation needs is unclear. Moreover, it only has that liability until September 2010. After that, it will reduce considerably. Clearly, the Irish Government is likely to keep any ailing banks ticking along until their unlimited guarantee runs out. When it does, the savings:GDP ratio of Ireland is about double that of the UK, so ignoring everything else, that suggests it is worse off (but certainly not in a different league) when it comes to its ability to meet its liabilities to savers.

melbury

Do you think there would a very heavy penalty if I withdrew my money from Anglo Irish? I am 14 months into a two year fixed rate bond, but if it was a choice between losing the interest and losing the lot, I would rather just lose the interest.

metrobus

Yes heavy penalty maybe all the interest,just hope they last another 10 months
if the bond is not worth a massive amount.

metrobus

http://www.angloirishbank.co.uk/Personal_Savings/Terms_and_Conditions/Fixed_Rate_Bond.pdf

Heres the link to the current T&C for their FTB`S

You would lose 60 days interest.

melbury

metrobus wrote: »

http://www.angloirishbank.co.uk/Personal_Savings/Terms_and_Conditions/Fixed_Rate_Bond.pdf

Heres the link to the current T&C for their FTB`S

You would lose 60 days interest.

Thanks for that information.

After the first year's anniversary they sent me a statement showing interest added. I wonder if they would leave this in place - i.e. the interest earned in the first twelve months - and just deduct 60 days worth of interest. Do you think if I contacted them they would tell me exactly what I would get if I pulled out now. I don't want to cause a panic:eek:

melbury

Have just been reading the T&C relating to withdrawal of money and it says, quote:

Withdrawals are only allowed in the case of an emergency and if permitted by Us and will be subject to the following Charge based on the period remaining..........

So it doesn't sound very hopeful. Doubt if they would consider the fact that I have lost confidence in them an emergency.