Anglo Irish Bank

redouma

Since the unscrupulous dealings of the directors of Anglo Irish Bank and its subsequent nationalisation I am wondering if, having only opened a 1 year fixed rate bond on 18 December 2008, Sean Fitpatrick resigned 19/12/08 when his dealing came to light, and the fact that this bond was only taken out because they advertised I would be covered by the UK FSA. This turns out to be incorrect owing to the 100% guarantee given by the Irish Government for all investments until 2010 where do I stand in asking for my full investment to be returned immediately?

I also wonder on the viability of the Irish Government's financial state given that several other major banks are in jeopardy.

malik999

You want your money so just ask them for it. Try to withdraw/close your account and see what happens.

FWIW I am leaving my 7% 1 yr bond opened in November 2008 in place.

soulsaver

redouma wrote: »

Since the unscrupulous dealings of the directors of Anglo Irish Bank and its subsequent nationalisation I am wondering if, having only opened a 1 year fixed rate bond on 18 December 2008, Sean Fitpatrick resigned 19/12/08 when his dealing came to light, and the fact that this bond was only taken out because they advertised I would be covered by the UK FSA. This turns out to be incorrect owing to the 100% guarantee given by the Irish Government for all investments until 2010 where do I stand in asking for my full investment to be returned immediately?

I also wonder on the viability of the Irish Government's financial state given that several other major banks are in jeopardy.

I'd leave my money in. Ireland'll be fine. Greece, Portugal and Spain are worse, just had their Moody's credit rating reduced. Irelands only 'on watch'. This stuff like 'Reykyavik on Thames' for London is just media hysteria.

gilltess

I have three fixed rate bonds with AIB, the first matures in February and I will withdraw the money on maturity. The last one matures at the end of 2009, and although I am concerned by reports of it's stability, I will keep my money in and my fingers crossed. The rates are much better than you can get anywhere else now.
Having been burned by the Icesave fiasco I am now ultra-cautious, but the media breeds hysteria and I am trying to keep a level head. I knew nothing about Ireland becoming exempt from the Passport Scheme last autumn, us savers should have received a letter, but I suppose they didn't want to panic us - look what happened to Northern Rock! Now that the AIB has been nationalised it should, in theory, be more secure, as long as Ireland does not go bankrupt. But if I withdraw my money no, incurring a penalty, where do I put it? Under the mattress? Oh, for a decent nights' sleep......

Lansdowne

Just to be clear, Anglo Irish Bank is not AIB. AIB is Allied Irish Banks Ltd which is not related to Anglo.

oldagetraveller

gilltess wrote: »

but the media breeds hysteria ......

Yes, I'm surprised they haven't already instigated a panic buying of petrol/Diesel "fuelled" by the current demonstrations and walk outs at some refineries.

ailuro2

We opened ours in NOvember 2008 and will be leaving it in the full year.

Jokes about What the difference between Iceland and Ireland - one ltter and 6 months are amusing, but imho just scaremongering.

If you can't sleep at night, or are not able to wait a bit extra for the money if the worst were to happen, then by all means take your money out now.

bloaty

Which one does the P.O. come under please?

jack_spratt_2

Bank of Ireland which also has the guarantee of all funds by the Irish government

JP45

I agree with gilltess. I have two fixed rate bonds with Anglo Irish and I shall be leaving them in place.

Now that the bank has been nationalised, it seems to me that the only circumstance in which I would fail to get my money back would be if the Irish government were to renege on its guarantee to savers. And this in turn would only happen if the Irish governmnet were itself facing bankruptcy. But just consider for a moment the implications of that. The impact on the global financial system and on banking confidence in general would be calamitous. I really cannot believe that such a scenario would be allowed to play out. The consequences would be so severe that the Irish government would have to be bailed out, either by the EU or the IMF. But even if, for some reason, the Irish state were allowed to go under, I believe there is a good chance that the UK government would step in and offer compensation to UK savers, up to the current £50,000 limit. Why do I believe this? Quite simply because so far, in an effort to maintain confidence in the banking system, the UK government has stepped in to bailout savers even when it was not strictly required to do so.

In any case, if I am wrong, and I and others who have money in Irish banks were to lose everything, then frankly the consequences would be dire. We really would be in a whole new ball game. Confidence in the banking system would be shot to pieces. I believe it would spark a run on virtually the entire banking system. After all, if depositors were to lose money in a nationalsed bank of an EU member state, then how could any of us believe our money to be safe in the remaining banks?

melbury

I have decided to leave my bond in place with Anglo Irish Bank until its maturity date in November.

Also, does anyone really believe that if the UK banking system collapsed that the country could afford to pay compensation to every investor? Where would that much money come from - the printing press??