Is Iceland headed for meltdown?

[Deleted User]

Let's hope this is NOT true........

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/02/03/cniceland103.xml&CMP=ILC-mostviewedbox

I have savings with a rather popular icelandic bank; I'm not mentioning names! :eek:

Swipe

Read this report and make your own mind up:

http://www.sedlabanki.is/lisalib/getfile.aspx?itemid=5648

deaglecat

Deleted_User wrote: »

Let's hope this is NOT true........

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/02/03/cniceland103.xml&CMP=ILC-mostviewedbox

I have savings with a rather popular icelandic bank; I'm not mentioning names! :eek:

you need to do your own assessment of risk vs reward (decent interest rates). They are covered by FSCS guarantee AFAIK. The problem with all the Banks / BS is that they are not really very transparent w.r.t their outlook - so you have to make decisions on partial/incomplete information.

that said, banks are businesses so if they don't need to pay a high rate then they won't - so the interest rate is (to an extent) a measure of the apetite of the bank to raise funds - which could be extrapolated (and it is a big jump...) as their need for liquidity - and (another big jump) to their overall capital position / solvency.

bristolleedsfan

http://forums.moneysavingexpert.com/showthread.html?t=719745

masonic

Given the following Moody's credit ratings....

Kaupthing: Aa3
Landsbanki: Aa3
ICICI: Baa2

Can someone please explain to me why it is the Icelandic banks that are a bigger risk?

bristolleedsfan

masonic wrote: »

Given the following Moody's credit ratings....

Kaupthing: Aa3
Landsbanki: Aa3
ICICI: Baa2

Can someone please explain to me why it is the Icelandic banks that are a bigger risk?

Isnt Moody thinking of downgrading them. :idea:

masonic

bristolleedsfan wrote: »

Isnt Moody thinking of downgrading them. :idea:

Well yes, they have been thinking of doing that since August 2007 and it hasn't happened yet. But even if they did, it would only take their credit rating down to A, which is still higher than Baa.

roddydogs

Deleted_User wrote: »

Let's hope this is NOT true........

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/02/03/cniceland103.xml&CMP=ILC-mostviewedbox

I have savings with a rather popular icelandic bank; I'm not mentioning names! :eek:

only if their Freezers Fail

luvpump

:eek: Ive got 25k in a bond with Icesave, Ime sure things will be ok but am i protected by the FSA charter .. ??

Aegis

luvpump wrote: »

:eek: Ive got 25k in a bond with Icesave, Ime sure things will be ok but am i protected by the FSA charter .. ??

You are protected up to £35k by a combination of the FSCS and the equivalent in Iceland, so your money is pretty damn safe

nilrem_2

Is this thread suggesting that it is no longer wise to keep in access of 35k in Icesave?

I moved a large 'pot' to Icesave from ING one cannot keep moving cash around!