Anglo Irish offer 100% deposit guarantee?

sacentre

Dear All

Anglo Irish Bank (IOM) tell me that in addition to the protection offered under the IOM Depositors' Protection Scheme, my deposits are 100% protected by AI's parent company. They told me in an email:

"Anglo Irish Bank Corporation (I..O.M.) P.L.C. are fully underwritten by our parent who would cover all deposits held with us 100% (capital & interest), ........ This situation is not however unique to Anglo Irish Bank Corporation (I.O.M.) P.L.C."

and they state on their web site:

"Anglo Irish Bank Corporation plc, .....fully guarantees all deposits made with Anglo Irish Bank on the Isle of Man."

It sounds too good to be true and I wrote to them several times asking for re-assurance and clarification. In one email, they replied with, "Yes, it means exactly what it says". I again pressed them asking for "the small print" but I was told there wasn't any.

What's the catch? There must be one. If they and other banks can offer 100% deposit protection, why have I not heard a word about it in the press what with all the discussion going on about the NR fiasco. And who are the other banks offering such protection?

Can anyone tell me what I'm missing?

Trevor

marc.faulkner

Surely if the bank itself is offering the protection, it's pretty worthless?

If Anglo Irish (I.O.M) has it's deposits guaranteed by Anglo Irish Plc, and Anglo Irish PLC goes under, the guarantee isn't worth the paper it's written on!

Just my understanding anyway, which could be completely wrong.

aleph_0

If I have understood correctly, the main Anglo Irish Bank company fully owns the Anglo Irish Bank Isle of Man company. You are giving your money to the IoM company, but if the IoM company goes bust, the parent company will bail the out...

... However, if the Parent company and the main company go bust then you will lose your money.

So, all they are giving a guarantee of is 'If our small IoW company collapses, the big company will pay', but that isn't really much of a notable guarantee - your money is not really any safer as it would be with the parent company.

kipwilliams

if Anglo Irish Bank Corporation plc goes bust then they can't guarantee anything in the IOM subsidiary.

However, it isn't particularly likely that they will....probably.

purch

It sounds too good to be true

No it's the least you would expect.

It would be really worrying if the Owner of the Bank didn't guarantee to 100% cover your deposits.