Icesave: how safe are your savings? Facts and myths

luv_my_brass

"My post is not referring to ING's acquisition of Kaupthings deposits. "

I know, but ING are a Dutch Company, and I can't help feeling that there is a connection between ING buying up Kaupthink and the Icelandic Government looking favourably on Dutch depositers in Icesave.

born2run

No I think it's more to do with the fact that they want to defer any cash outflow for as long as they possibly can!

Dan_66

born2run wrote: »

No I think it's more to do with the fact that they want to defer any cash outflow for as long as they possibly can!

I do feel slighlty disturbed that despite the below statement on the Icesave Website (and others eleswhere)
'HM Treasury stated that the chancellor has put in place arrangements that all retail depositors in Icesave will receive their money in full'
We now appear to be no further forward...... Just exactly what, are/were these arrangements? Since the Treasury Officials meetings in Iceland last week and over the weekend the waters have become muddied, and unclear. We are told how 'friendly' the meetings were yet the Icelandic Government is going to sue the UK over its handling of the matter!!!
We are now being told that £100million is being loaned by the UK to Iceland so that payments can be accelerated ..... yet that doesn't even cover £300 for each of us!! (£100,000,000 divided by 300,000 depositors equals £300!!)?
Why the hell can't a simple solution be found whereby all UK retail accounts are transferred to a UK institution and when this has been done, the UK can slowly thaw out the siezed assets in the UK until Iceland has paid -the 'UK' back?
My other point is that as Iceland is only responsible for the first £16,000 (approx) -do they get to pocket the surplus in those accounts where depositors have more than this!!!?????:mad: :mad:

born2run

I'm concerned too. I'm worried that when we're told 'the chancellor has put in place arrangements....." it means that UK depositors will get their money back only when we (HMG) have found a way (sometime in the future) for Iceland to pay up the first £16k. Hopefully I'm totally wrong but at the moment it feels like the Dutch depositors will get their money back in weeks whereas we may have to wait (many) months. Until we have a committed timeframe a guarantee to get our money back could be any time in the future. I'm still hoping that HMG's committment will follow the Dutch model and move the risk from the depositors to themselves.

Dan_66

I think the FSCS (amongst others) has an awful lot to answer for.

This is the first time (to my knowledge) that the FSCS has ever been put to the test in such a major way. Whilst I appreciate its hands may be tied in many respects by the Treasury (and the secretive Icelandic discussions), it does appear to be totally unprepared to do the job it was designed to do!

I have seen some smug comments on this and other forum site whereby those using the benefit of hindsight have sought to criticise all of us who deposited in Icesave. Some question the wisdom of depositing money abroad whereby only part was protected by the FSCS-citing other 'UK' banks and building societies which have 'full' protection under the FSCS scheme, as a somehow 'safer' alternative.

All those detractors with savings 'protected' by the FSCS should look at our collective experience of the FSCS up to now and give thanks that we are testing the system that they have all put so much faith in. There but for the grace of god.......

Waiting to hear what the return arrangements will be and losing control of our cash for an unknown, undefined period, is a position anyone with deposits in a 'UK' account could find themselves in-bail out or no bail out.

luv_my_brass

born2run wrote: »

I'm concerned too. I'm worried that when we're told 'the chancellor has put in place arrangements....." it means that UK depositors will get their money back only when we (HMG) have found a way (sometime in the future) for Iceland to pay up the first £16k. Hopefully I'm totally wrong but at the moment it feels like the Dutch depositors will get their money back in weeks whereas we may have to wait (many) months. Until we have a committed timeframe a guarantee to get our money back could be any time in the future. I'm still hoping that HMG's committment will follow the Dutch model and move the risk from the depositors to themselves.

If it was ok to buy out Kaupthing Edge, I wonder why no one thought to buy up Icesave??? Of course I do not know the whys & wherefores, but as an Icesaver depositer, I'm thinking it would have been a good idea :j

Ratatosk

born2run wrote: »

Hopefully I'm totally wrong but at the moment it feels like the Dutch depositors will get their money back in weeks whereas we may have to wait (many) months.

Perhaps the Dutch compensation solution isn't quite as finalised as it first appeared.
http://www.ft.com/cms/s/0/c4d88026-9a1a-11dd-960e-000077b07658,s01=1.html

Quote:
"Plans to compensate savers up to €100,000 ($136,600) for deposits at the Dutch arm of Icesave, a subsidiary of the Icelandic bank Landsbanki, threatened to unravel on Tuesday night as the country’s largest savings bank said it had no intention of helping to fund the rescue."

ggemmell

I have got a cash ISA with Icesave and also a savings account which I had transferred money into a few days prior to all the stuff kicking off. This money left my bank account but is only showing as a processed balance on my print out and not cleared yet? Will this be part of the compensation process or will I have to contact my bank?

born2run

Ratatosk wrote: »

Perhaps the Dutch compensation solution isn't quite as finalised as it first appeared.
http://www.ft.com/cms/s/0/c4d88026-9a1a-11dd-960e-000077b07658,s01=1.html

Quote:
"Plans to compensate savers up to €100,000 ($136,600) for deposits at the Dutch arm of Icesave, a subsidiary of the Icelandic bank Landsbanki, threatened to unravel on Tuesday night as the country’s largest savings bank said it had no intention of helping to fund the rescue."

When I said I hoped I was wrong I was hoping that the UK depositors would get their cash sooner not the Dutch getting their cash later!

Incidentally, it would be interesting to know what proportion of UK deposits are in fixed term accounts. I'm in this category and from my perspective I'd be happy to let them run to their normal maturity dates as long as interest was paid as per the original agreement and HMG guaranteed the payment at the originally agreed maturity date.

Surely then this would release more cash to people who are desperate to get their hands on their money now i.e. those with instant access savings accounts who didn't consciously sign up for a later return.

captainkevos

luv_my_brass wrote: »

If it was ok to buy out Kaupthing Edge, I wonder why no one thought to buy up Icesave??? Of course I do not know the whys & wherefores, but as an Icesaver depositer, I'm thinking it would have been a good idea :j

I believe it was because the FSA had 100% authority over KE because it was a 100% UK opt-in to the FSCS, whereas with Icesave, being a member of the Passport scheme, it was beyond their control to seize their assets. I hope I got this right, I read it somwhere on another thread I think.

I'm an Icesave AND KE depositor ! I pulled all my cash out of KE as soon as I heard the bad news about Icesave. (I was just in time, as I've seen that hundreds are still waiting for withdrawals to go through after the ING takeover)