What's going on with the Icelandic banks?

There was a report on the television about Iceland (the country) being on the verge of Bancrupcy. I'd get your loot out quick.
 
From what I've read, it looks like Iceland will not honour the guarantee on UK depositors funds, as the Country does not have the money? If this is the case, is it unreasonable to assume the same thing could happen here? Does the Governments guarantee of out 50K actually mean anything? While they may be able to honour it if a small institution were to go under, what would happen if one of the big boys did? It sounds very much like a hollow insurance policy, designed to increase confidence, rather than actually protect our funds. It's all very scary.
 
awaybreaktoday said:
IceSave savers are not guarenteed any money back. I would advised that eveyone pull out their money from all foriegn banks.
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Where did you get that from?

On http://www.fscs.org.uk/consumer/ it says :
Eligible savers with Icesave are protected by the Icelandic Depositors' and Investors' Guarantee Fund (IDIGF), up to a limit of the first 20,887 euros of their deposits. As an Icelandic bank Icesave is not automatically a member of the FSCS, but it opted to become a 'top-up' member. This means that eligible retail savers with Icesave's UK branch whose savings exceed the Icelandic limit would benefit from top-up compensation from the FSCS covering the amount over the Icelandic limit up to the new FSCS compensation limit for deposits of £50,000.
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So its not all bad.
 
peter_hutson said:
From what I've read, it looks like Iceland will not honour the guarantee on UK depositors funds, as the Country does not have the money? If this is the case, is it unreasonable to assume the same thing could happen here? Does the Governments guarantee of out 50K actually mean anything?
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Where is everybody getting this from!! its all ridiculous speculation, please show us a source that says the FSCA (nothing to do with Iceland) will not do as it says.

and come on if it didn't then we would be locking at a even worse meltdown, as everybody in the country goes to there bank and takes there cash out. the new limit of £50K covers something like 97% off all bank deposits.

now i feel sorry for the person with 200K in there bank. but this mess has bean going on for well over a year now, and if you really do have that much money kicking around you should have spread it around.

Remember its £50K per person per institution, so joint accounts = 100K in one account, an extra 50K per person per banking group.

yet again miss information and the media have worked everybody into a panic!
 
I'll agree with one thing, it's all very scary this current global financial crisis. I'm scared to do anything financial now.
 
God does everyone here work in the finance industry.

If anyone is worried, how about you make a few people who know what they are talking about; instead of getting 5 different versions from here.
 
crazyDAJT said:
Where is everybody getting this from!! its all ridiculous speculation, please show us a source that says the FSCA (nothing to do with Iceland) will not do as it says.

and come on if it didn't then we would be locking at a even worse meltdown, as everybody in the country goes to there bank and takes there cash out. the new limit of £50K covers something like 97% off all bank deposits.
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Icesave for instance is covered by the passport scheme so the first £16k has to be claimed from the Icelandic government. The rest is then made up by the FSCA. Some people could lose out but I have a feeling the FSCA will bail out the full 50k if Iceland can't deal with this.
 
I just heard on the radio that one women had put her whole life saving into Icesave. Said she checked the website last night and thought everything was looking ordinary. £190K!
What a dumb ass!
 
The FSA can only payout if the IFSA payout, When the Prime minister of Iceland spoke today he only guarenteed Domestic Despositors of Iceland not foriegn, therefore your money is not safe. Iceland may not even be able to payout fully to all domestic depositors. Iceland: GDP 20bil, banks debt 100bil, the country in is bankrupt but they have not offically declared it yet, they are desperate for the russian loan but it is still only going through the motions, they need the money from the russians to restore creditbility to their battered currency.

Think you should all re-watch the Iceland prime ministers statement again.
 
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pedrochop said:
I just heard on the radio that one women had put her whole life saving into Icesave. Said she checked the website last night and thought everything was looking ordinary. £190K!
What a dumb ass!
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Pretty much the same situation my friend is in. :( I agree it's a stupid amount of money to have in one account, if I had that sort of money saved up I'd have it in more than one account (at least), or buy a house...
 
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The Financial Services Authority this afternoon drafted in Ernst & Young (E&Y) as emergency administrators of Landsbanki’s UK operations in a bid to protect retail depositors and British financial stability.

However, a spokeswoman for E&Y said the move will not protect the deposits of the 300,000 customers of Icesave, the internet savings bank that is owned by Landsbanki, who found their accounts frozen this morning after Iceland’s financial regulator took control of the country's second largest bank.

Customers of Heritage, Landsbanki's UK subsidiary will, however, be protected, according to E&Y.

http://business.timesonline.co.uk/t...ectors/banking_and_finance/article4897712.ece
 
"As declared by the government, all domestic deposits are fully guaranteed," the Financial Supervisory Authority said. "Landsbanki's domestic branches, call centers, cash machines (ATMs) and Internet operations will be open for business as usual."

Icesave, Landsbanki's Internet service, stopped processing deposits and withdrawals, according to a brief announcement on the Web site.

Within hours of the government move, the Samson holding company, which held a 41 percent stake in Landsbanki, went to the district court seeking temporary protection from its creditors.
 
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