What's going on with the Icelandic banks?

MikeHunt79

MikeHunt79

MikeHunt79

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Someone I know has around 20k in an account there, I just heard on the news that there is some sort of problem.... The government is involved apparently....

Anyone know if my friend is gonna lose his dosh?
 
The first 2k is guaranteed 100% and then the rest at 90%

With Icelandic banks, half is covered by the FSA (UK authority) and the other half by the relevant Icelandic authority, so although he will get compensation if everything went **** up, which I'm not suggesting it will, he is covered. Although it will take time for the 'foreign' half of the money to come through.
 
Nice, thanks... I'll let him know about the FSA, it should put his mind at rest. When I laast spoke to him he thought he was going to lose the lot! :eek:

Out of interest, is there an upper limit (eg if someone had 500k in an Icelandic bank, would that still be 90% covered)?
 
MikeHunt79 said:
Out of interest, is there an upper limit (eg if someone had 500k in an Icelandic bank, would that still be 90% covered)?
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Depends on who regulates it. A lot of foreign banks that offer products in the UK come under the UK regulations but some don't. If it is one that is then the scheme guarentees 35,000 only. The government has iirc raised this to 50,000 but a lot of the uncertainty today is whether they will increase this level again. Ireland and then greece, denmark and iceland have guarenteed 100% of saver deposits and this is putting pressure on the UK and others to match it.
 
When you mean Icelandic bank, do you mean a branch of an Icelandic bank operating in this country under FSA regulation or he took his money as a capital movement to Iceland and invested it in a bank there?
 
freebooter said:
Depends on who regulates it. A lot of foreign banks that offer products in the UK come under the UK regulations but some don't. If it is one that is then the scheme guarentees 35,000 only. The government has iirc raised this to 50,000 but a lot of the uncertainty today is whether they will increase this level again. Ireland and then greece, denmark and iceland have guarenteed 100% of saver deposits and this is putting pressure on the UK and others to match it.
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Nice, 20k is under that limit, but I bet there are quite a few people over the 50k limit!
Sukh said:
When you mean Icelandic bank, do you mean a branch of an Icelandic bank operating in this country under FSA regulation or he took his money as a capital movement to Iceland and invested it in a bank there?
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I'm not 100% sure, I'll ask him tomorrow, but I'm guessing it's more likely to 1st thing (branch in this country).
 
I seem to remember (very recently) an icelandic bank with big posters on the london underground, advertising attractive savings/deposit rates... :o
 
Iceland is in trouble, big big trouble. Lets put it this way today alone there currency fell 25%, Inflation is at 12% and Interest rates are at 15%. I heard on the news that the country is apparently on the brink of being bankrupt.
 
daz said:
I seem to remember (very recently) an icelandic bank with big posters on the london underground, advertising attractive savings/deposit rates... :o
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That would be kaupthingedge at a blind guess

http://www.kaupthingedge.co.uk/

they are coved by the UK regulation and as off tomorow, £50,000 are guaranteed 100% by the FSA. i have money with them, am i worried, no!!

I have seen the news reports, people moving there money around are just creating more problems!!

also the governments which have guaranteed 100% of savings, cant actually afforded it if it all when to the wall, they would have to borrow between 2-5X the GDP, and who is going to lend that at the moment.

The problem is everybody is worried about there savings, when they should be worried about the banks not being able to lend money to each other, as this is what will put a lot of people out of a job.
 
Iraklis F.C. said:
wow iceland looks like its going to be the first to collapse , its unbelievable for an economy which was looking alright just 2 years ago
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I'm not sure I agree with the healthy view - it's at high risk as they have a small economy and people there bough using credit (higher costs for importing too).

We have a customer in Iceland so it'll be interesting to see the impact. Even though we have our 'risk' spread over geography. We, like our competitors, are not diverse in the market areas.

Overall I think it's going to be bumpy ride and I see we'll be working harder than ever for the smallest of opportunities - just like our competitors.
 
fini said:
Noooooooooo where will I get my 75p freezer essentials from now?
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I realise you aren't being serious, but doesn't an Icelandic bank or investor actually own Iceland, the UK frozen food supermarket - not the country? Therefore if it all goes titsup you might well have to get your 75p freezer essentials elsewhere. At least Kerry Katona will be out of a job, and ironically she's bankrupt as well isn't she?

Icelandic investors also own House of Fraser and Hamley's I believe.
 
Was going to move my ISA to icesave in April for their awesome rate, now I will stick with the big red spanish back of fun.
 
scorza said:
I realise you aren't being serious, but doesn't an Icelandic bank or investor actually own Iceland, the UK frozen food supermarket - not the country? Therefore if it all goes titsup you might well have to get your 75p freezer essentials elsewhere. At least Kerry Katona will be out of a job, and ironically she's bankrupt as well isn't she?

Icelandic investors also own House of Fraser and Hamley's I believe.
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Also Hammers are owned by some sort of Icelandic Consortium?
 
Oh crap, what is going to happen with iceland and their great frozen food bargains ???? Surely they will bring back kerry Catona for their ad campaigns !
 
I've got £7000 in icesave, tried to draw it out this morning and they are not releasing any money oh ****!

I've done some research and it seems that people are ok up to £50,000


The Icelandic Depositors’ and Investors’ Guarantee fund provides the first level of protection, which covers up to 100% of the first €20,887 (or the sterling equivalent) of your savings.
The UK Financial Services Compensation Scheme tops up your protection so that protection under both schemes is equal to 100% of the first £35,000 of your savings deposits held with Icesave.

However the first opportunity I get I am getting my money out.
 
if icelandic investors have their money invested in companies over here, what difference does it make if the icelandic economy collapses?
the money is invested over here, so they are safe unless our economy collapses, I can't see them withdrawing all investment here because they have problems there.
 
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