Lib Dems warn over Irish banks' safety

edited 30 November -1 at 1:00AM in Savings & Investments
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MSE_GuyMSE_Guy MSE Staff
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edited 30 November -1 at 1:00AM in Savings & Investments
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  • gozomarkgozomark Forumite
    2.1K Posts
    wakey, wakey, Libdems - this story is months old
  • cepheuscepheus
    20.1K Posts
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    Of course if Moody & Co had done their job properly in the first place!
    Irish banks rattled on ratings downgrade

    Moody's downgraded its ratings on 12 Irish banks, including Allied Irish Banks and Bank of Ireland which backs Post Office savings in the UK, saying that it expected them to incur further losses from a continued deterioration in property prices, rising corporate defaults and poor residential loan performance.

    http://www.thisismoney.co.uk/investing-and-markets/article.html?in_article_id=482088&in_page_id=3&ct=5
  • Count_DanteCount_Dante Forumite
    505 Posts
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    Even after the downgrade, the credit rating of Irish banks - taken at face value - is still very high and the chance of default is very low. Still, I'd be worried if I had a large proportion of my wealth in Irish banks.
  • WD40WD40 Forumite
    54 Posts
    gozomark wrote: »
    wakey, wakey, Libdems - this story is months old

    October 2008: http://news.bbc.co.uk/1/hi/uk_politics/7663596.stm
  • lynzpowerlynzpower Forumite
    25.3K Posts
    10,000 Posts Combo Breaker
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    This is age old, but also doesnt it grate the way Mandelson keeps going on about the post office being the "peoples bank".

    Only if the FSA guarantees them mandy, unlesws you want to f*** over some little old ladies who dont realise thier money is no longer safe in the PO.

    Its possibly THEmost unsafe place to have savings ATM and the gov seem to be pushing it as a viable option- distasteful .
    :beer: Well aint funny how its the little things in life that mean the most? Not where you live, the car you drive or the price tag on your clothes.
    Theres no dollar sign on piece of mind
    This Ive come to know...
    So if you agree have a drink with me, raise your glasses for a toast :beer:
  • Andrew64Andrew64 Forumite
    425 Posts
    lynzpower wrote: »
    Its possibly THE most unsafe place to have savings ATM and the gov seem to be pushing it as a viable option - distasteful .

    You think they care? They're happy enough to spend our money on second homes and !!!!!!! If any of us lost money in an Irish bank (through the Post Office) this creep Mandy would probably say it was our own fault!
  • TrollfeverTrollfever Forumite
    2.1K Posts
    The Post Office has rejected calls from the Liberal Democrats to abandon its ties with the Bank of Ireland as fears over the Irish economy grow.
    The organisation, which has 2m British customers, uses Bank of Ireland to run all its financial products, including its popular growth bonds and Isas. These accounts are not covered by the UK Financial Services Compensation Scheme — instead, customers must rely on a guarantee from the Irish government that 100% of their savings will be repaid.
    Last week, Ireland unveiled an emergency budget containing measures to boost the economy, after which Fitch, the ratings agency, stripped it of its AAA debt rating. The downgrade came despite the European Commission’s endorsement of the budget measures.
    http://www.timesonline.co.uk/tol/money/savings/article6077127.ece
  • Andrew64Andrew64 Forumite
    425 Posts
    I like this bit of the above article:

    Lord Oakeshott, the Lib Dem Treasury spokesman, said: “The market’s message is that this is a shaky bank backed by a shaky government."

    The Post Office should not be taking any risk at all with its customers' money. Although we can't be sure if Ireland ends up like Iceland and its banks end up like Icesave, KE etc, why take the risk? There have been a lot of articles recently about just how bad the Irish economy is, and the response to an Irish default by the ECB is unknown. Even if Ireland is bailed-out, would that extend to British depositors, and what would the UK government do? All very uncertain! In March/April last year, there were warnings about Icelandic banks - but the banks said everything was fine and people stuck with them. Six months later, there were the same warnings and the same assurances - but bang!! Are we getting the same sort of warnings about Ireland and its banks now??
  • Andrew64Andrew64 Forumite
    425 Posts
    I've been hearing stories for months about Councils and other bodies removing their money from Irish banks, but this is the first article I've seen on this. Anyone know of any other examples?

    City Hall withdraws £4m from Irish banks

    http://www.eveningnews24.co.uk/content/news/story.aspx?brand=ENOnline&category=News&tBrand=ENOnline&tCategory=news&itemid=NOED02%20Apr%202009%2016%3A52%3A04%3A437

    "Norwich City Council has withdrawn around £4m it had invested in Irish banks, amid concerns over the country's financial institutions."
  • :confused:Please can someone explain to me in monosyllables what is the basis for this warning? Money in Irish bank accounts is guaranteed up to 100,000 euros (app £89,000) per depositor compared to the UK's guarantee of up to £50,000 per depositor. What is the evidence that the Irish guarantee is shakier that the UK's guarantee? Why is the Irish position being equated to the Icelandic position a few months back?:confused:
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