Concerns mount for Irish Banks

bryanb

apt wrote: »

Didn't Darling make the point that the Icesave action was done to reassure savers and could not be relied upon in the future? In the case of Ireland there would probably be some form of European rescue action, but I would not be sure of continuing to achieve a high interest rate.

Agreed, but I doubt this government could afford to allow UK savers to lose money, they are in a bad enough state without more problems and alienation of the public. The high rate for Icesavers is continuing because of the promise that retail savers would not lose money ( I think G Brown promised it)

mal4mac

Personally I would get out now, even with a small loss. Of course, there is nothing to say that UK banks will not collapse. But having your savings in a bank in your own country (if it's a country like the UK!) is surely the least risky option. Taking risks just to get a few % more of interest doesn't seem sensible in this environment.

jack_spratt_2

bobcurtis wrote: »

I have £20,000, (my life's savings) in Post Office / Bank of Ireland which I can not get out until Feb 2010. Does anyone know if it is possible to get it out earlier?(Like now!!)

As someone else has said it is possible to close the growth bond before it has finished the full term !! just write a letter saying you wish to close it .

In the past because the interest rates were so low in comparison to what they were paying you on the account they were not charging a breakage fee but suggest you ask them !!

BigEarns

I'm just about to complete a sale of a property and was planning to do this via National Irish (better exchange rate than via a UK Euro account).
As long as the exchange rates hold out the money should only there for matter of days, but does anyone have a view on level of risk of this?

Thanks

gozomark

the risk even holding it there for a year is very, very small (somewhat less than 1% in my mind), for a few days even smaller, but still not zero.

I find it interesting how few posts there are on this thread - a similar one in Jan/Feb ran to the hundreds. I think the title is misleading
"concerns mount for Irish banks"

there is, or certainly should be, less concern now than a few months ago.
1. The world financial systems have improved
2. cost of insuring Irish defaulting has dropped alot (CDS was 222bp a few days ago, v 396 bp at its peak in January)
3. Irish budget shows they are serious in correcting deficit, plus evidence wages are falling by up to 10%, and the 15% jump in £ v € this year has made Ireland more competitive

the points made in the article re: Moody's downgrade Anglo Irish, and Moody's "losing confidence in the Irish banking system." - just shows how far Moody's are behind the situation, as its merely saying what they should have said months ago - Anglo Irish should have the same rating as the Irish State, as it doesn't really exist as a separate entity

should really be
"concerns diminish for Irish banks"....

digannio

This article by Mr Anker is scaremongering claptrap. For starters, the Irish Government isn't about to go bust and renege on agreements with the outside world. Sure, it's been hit badly by the worldwide turmoil, along with a lot of other countries, but there is no evidence that the entire country is going to collapse in a heap. And even if you were barmy enough to believe that is imminent, do you really think Europe would sit back and let it happen with the catastrophic consequences that would have for all? And even if you believe that will come to pass do you honestly then think the new Government charged with picking up the pieces in Ireland would announce that the country would renege on its guarantees to people at home and around the world? And then, if you really believe all that will happen do you really think the UK Government, after the precedent set with Iceland, would says to savers: "Sorry sunshine, you're on your own." For pity's sake, get real.
I've got some money earning around 7% in Anglo Irish Bank, due to mature in the next few months. I've done what sensible people are doing. Don't panic and let it run its course despite articles such as Mr Anker's desperately trying to rock the boat. What will happen? I'll tell you... nothing except I'll be quids in over the Corporal Jones' who have been running around like headless chickens, flying the the face of common sense.