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Free handouts for the wealthy.
iamesbo
Posts: 258 Forumite
I wonder if in future, when people are whinging about people living on handouts, will they include savers with Icelandic banks in that group? 
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Comments
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Troll alert?Savings
£14,200 with £1100 M.I.A. presumed dead.0 -
I wonder if in future, when people are whinging about people living on handouts, will they include savers with Icelandic banks in that group?
Whilst not expressing it in that way a number of people on this forum have voiced those sentiments. In addition they have introduced a xenophobic element implying that 'Johnny Foreigner' is no good and those that invest with them get what they deserve.0 -
Whilst not expressing it in that way a number of people on this forum have voiced those sentiments. In addition they have introduced a xenophobic element implying that 'Johnny Foreigner' is no good and those that invest with them get what they deserve.
I don't know about the xenophobic element, but generally I think you are taking a greater risk when your invest offshore as you are no usually covered by UK laws to the same extend.
The foreighners people usualy complain most are black, asians, and Eastern Europeans, their banks seem to have faired considerably better than ours as
far as I am aware. Usually with investments the higher the return the higher the risk.0 -
I wonder if in future, when people are whinging about people living on handouts, will they include savers with Icelandic banks in that group?
I repeat my challenge from this post - to anyone who can look up IceSave on the FSA Register (and it's still registered at the time of this posting) and find an explanation of "EEA Authorised" on the FSA register website.0 -
I wonder if in future, when people are whinging about people living on handouts, will they include savers with Icelandic banks in that group?
Well if they don't get their savings back, I suspect most will be living on 'regular' benefits instead, if not now, then when they would have used their savings.
Otherwise it's giving the message "what's the point in saving, when you can lose it all. Spend it now and live on the state later."Conjugating the verb 'to be":
-o I am humble -o You are attention seeking -o She is Nadine Dorries0 -
If they do get their saving back the system will not be fixed and the problem will re-occur. The banks now hve a bigger mandate to go back to reckless lending,
there is no downside for for those responsible.0 -
lets clear up some of these 'bail out' comments:-
This liability would only come into play if the following set of circumstances arose:-
1. Icesave went into Liquidation
2. The bank didnt have enough to cover deposits (it has one of the highest liquidity levels of the banks on this planet - 63%)
3. The passport compensation scheme was not honoured by Iceland (the country would have to declare itself bankrupt to do this).
4. The nordic countries did not come to Iceland's aid under their reciprocal trading agreement (or even russia come to that).
5. The EU did nothing to help (quite likely)
6. The £4BN of seized UK assets of Landbanksi didnt cover the deposits
Lets not forget that only the first £16,170 is at risk here for savers anyway as the remainder up to £50,000 is covered under the FSCS.
Total liabilities could possibly reach £1BN if it came to the worst but this is miniscule compared to the banks bail-out of £50BN. Not to mention this is savers we are talking about, not fat cats and shareholders (who knew the risks).
Darling also stated he would seek legal action to recover any UK losses.
The only issue I can see that people should be upset about is the payment of deposits above £50,000 as even UK banks do not offer that (except northern Rock and NSI). That risk was wholly apparent so I do agree that this is something to comment on.
THE ISA SAVING SCHEME AT ICESAVE WAS FULLY APPROVED BY THE INLAND REVENUE AND THE FSA. Most people are small time investors like you & me.0 -
Whilst I don't want to see recently locked-out savers and those who have been living hand-to-mouth a bit longer than that pitched against each other, I can understand the sentiment. Indeed, the fact that people feel as though it's the rich people who are benefitting from the collapse of the banks is precisely why the US Congress initially voted against the rescue package that George Bush, John McCain and Barack Obama had united with each other to try to push through. Not to mention the scapegoating of Richard Fuld from Lehman Brothers.
And back to the UK, it's all very well to say that Icesave was backed by the FSA, and that it was not supposed to be a high-risk investment, but that doesn't soothe the nerves of those who are absolutely dependent on benefits, and who live Giro to Giro, like the people in Rotherham who featured on Jamie Oliver's recent Ministry of Food, and who have had fingers wagged at them time and time again about how lazy and irresponsible they are.
Suffice to say, thanks to the impending recession and the welfare-to-work schemes that have been so popular with Daily Mail readers, there's going to be a lot of these finger waggers who will find themselves having to sweep the streets for their own dole money in about a couple of years' time from now.
The hard times may make us fight, but hopefully when the dust is settled, we'll realise that we're all in this together.
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I think you'll find the vast majority of Icesavers are not wealthy or anything like it.0
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