What's going on with the Icelandic banks?

Corran said:
KaupthingEdge is one of the safer banks in Iceland at the moment. An awful lot of their business is international and they are set up in a lot of european countries now.

Add to the fact that we will be covered up to £50k if they do go under... I'm not moving my money. It just makes things worse.
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The 50K is dependant on when they went into administration...
 
simulatorman said:
Read this http://business.timesonline.co.uk/t...ectors/banking_and_finance/article4894904.ece
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what, this?
Baugur, the Icelandic investment group that owns stakes in House of Fraser, Debenhams, Woolworths, Moss Bros, French Connection and the supermarket chain Iceland, said that its British businesses were not affected. But well-placed City sources said that Baugur had held private discussions about selling some assets and persuading banks to lend fresh money against others. “There are covert conversations taking place,” one source said.

A spokesman for Baugur denied that there had been an increase in such conversations in the past week.
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It's not surprising that they're talking about selling some assets, but that's nothing special. Like I said, they're not just going to withdraw funding, if they sell the companies someone will buy them, they wont just disappear.

Corran said:
KaupthingEdge is one of the safer banks in Iceland at the moment. An awful lot of their business is international and they are set up in a lot of european countries now.

Add to the fact that we will be covered up to £50k if they do go under... I'm not moving my money. It just makes things worse.
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Likewise here, I'm tempted to take my money out but I'm sticking it out for now, I have less than 50k in there should worst come to worst
 
Abraham said:
only IceSave (Landsbanki) has gone into administration. Kaupthing hasn't yet, and KaupthingEdge isn't really an icelandic bank, it's the UK arm of an icelandic bank (Kaupthing)
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If I remember rightly they have a similar structure to Santander and the Abbey.

Money saved with KaupthingEdge is left with Kaupthing Singer and Friedlander (spelt right?), a UK company that is owned solely by Kaupthing Bank in Iceland. As a result its covered by the FSCS :).
 
IceSave in mega trouble, there are no guarentees on it from Iceland. They are only interested in saving domestic system in Iceland and only guarenteeing domestic savers.
 
It seems to me the problem is Iceland have said they will guarantee the first 15k and then UK will honour between 15-50k.
The problem is Iceland as a country can't physically afford to so I can't see how they can pay the first 15k and I can see our government saying we won't honour the first 15k as that's someone else's guarantee.
 
I wish you all the luck in the world IceSavers, but my inside news i am getting from IceSave is not looking good. You could only end up with just 20K from the UK and 15K from Iceland but Iceland does not have the money to pay you. Administration happened before 12 midnight. so new limit will not apply. Also IceSave funds and deposits were all moved before midnight to Iceland.
 
http://news.bbc.co.uk/1/hi/business/7656387.stm

according to the BBC

Under the depositor protection arrangements in Iceland and the UK, the Icelandic authorities will be liable for the first 20,887 euros (£16,300) of compensation.

The UK's FCSC will pay out the rest of the claims, up to the newly introduced ceiling of £50,000 per person.
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The bank hasn't folded yet, it needs to go into liquidation before you should clam. The good news is the under our scheme the insurance is paid by the banks not the tax payer
 
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