What's going on with the Icelandic banks?

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.

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!
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By watching BBC news, the Icelandic Prime minister was very careful with his words. He assured the audience that "Domestic" depositors were safe, a strange choice of words if they intend to guarantee everyone's money.

The point I was making was that the Icelandic Government had a scheme in place to protect all depositors, but the scale of the problem and the size of the dept is such that the Government is unlikely to be able to honour that promise, so what value do these guarantees have?

I stand by my comment, in the event of a serious bank failure, the Governments guarantee will mean squat. Is there anything we can do about this, nope, sticking all you cash under the mattress would be just as stupid. But so to are cries of "Don't worry, your money is safe"
 
I WISH PEOPLE WOULD GET THE FACTS AND INFORMATION CORRECT BEFORE WADDING INTO A THREAD!!:mad::mad:

So many moronic comments on here that only increases the already jittery members of the public.

I have a number of cash ISA within Icesave - yes i can not withdraw money from them now but i am fully covered -

"If an Icelandic bank failed, savers would still have the first £16,170 of their money protected under the Icelandic savers compensation scheme, with the sum topped up to £50,000 for individuals, or £100,000 for joint account customers, by the Financial Services Compensation Scheme (FSCS)."

Am i bothered?? - not particularly as it could be any UK bank tomorrow that goes down the tubes the way things are going.

I will have to wait a few months i'm sure to claim my money back but i will get it back so not that fussed.
 
The Icelandic government were pretty clear in their statement that they would only be protecting their domestic customers, not international ones. So will the UK FSCS cover that shortfall or not?

Certainly as it stands their banks liabilities far exceeds the amount of money the Icelandic Savers Compensation Scheme could ever hope to payout.
 
booyaka said:
I WISH PEOPLE WOULD GET THE FACTS AND INFORMATION CORRECT BEFORE WADDING INTO A THREAD!!:mad::mad:

So many moronic comments on here that only increases the already jittery members of the public.

I have a number of cash ISA within Icesave - yes i can not withdraw money from them now but i am fully covered -

"If an Icelandic bank failed, savers would still have the first £16,170 of their money protected under the Icelandic savers compensation scheme, with the sum topped up to £50,000 for individuals, or £100,000 for joint account customers, by the Financial Services Compensation Scheme (FSCS)."

Am i bothered?? - not particularly as it could be any UK bank tomorrow that goes down the tubes the way things are going.

I will have to wait a few months i'm sure to claim my money back but i will get it back so not that fussed.
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You are incorrect:

"If an Icelandic bank failed, savers would still have the first £16,170 of their money protected under the Icelandic savers compensation scheme, with the sum topped up to £50,000 for individuals, or £100,000 for joint account customers, by the Financial Services Compensation Scheme (FSCS)."

The top up only comes into effect if Icelandic savers compensation scheme is paid out and the Icelandic government has not guarenteed it will for non domestic savers, so infact you could lose everything. Also Iceland does not have the money to pay out everyone. It is bankrupt.
 
awaybreaktoday said:
You are incorrect:

"If an Icelandic bank failed, savers would still have the first £16,170 of their money protected under the Icelandic savers compensation scheme, with the sum topped up to £50,000 for individuals, or £100,000 for joint account customers, by the Financial Services Compensation Scheme (FSCS)."

The top up only comes into effect if Icelandic savers compensation scheme is paid out and the Icelandic government has not guarenteed it will for non domestic savers, so infact you could lose everything. Also Iceland does not have the money to pay out everyone. It is bankrupt.
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Since when can a COUNTY be bankrupt?? where has that been confirmed from??
 
booyaka said:
I WISH PEOPLE WOULD GET THE FACTS AND INFORMATION CORRECT BEFORE WADDING INTO A THREAD!!:mad::mad:

So many moronic comments on here that only increases the already jittery members of the public.

I have a number of cash ISA within Icesave - yes i can not withdraw money from them now but i am fully covered -

"If an Icelandic bank failed, savers would still have the first £16,170 of their money protected under the Icelandic savers compensation scheme, with the sum topped up to £50,000 for individuals, or £100,000 for joint account customers, by the Financial Services Compensation Scheme (FSCS)."

Am i bothered?? - not particularly as it could be any UK bank tomorrow that goes down the tubes the way things are going.

I will have to wait a few months i'm sure to claim my money back but i will get it back so not that fussed.
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You might be fine yes but there's quite a few out there which have deposited over the limits into Icesave. So they are facing severe financial losses.

People aren't "wading into the thread" at all IMO.
 
Well to late now - so will just have to wait and see what happens with my cash. In the meantime will get some money stuck into the shares/markets now for the long haul!!
 
When someone has your hard earned cash and they are saying "sorry you cant have it" I think 99% of the population would wade in and fly off the handle

How dare a company you entrust with your money say "computers says no"

Its comical and people should be jailed for this mess.
 
booyaka said:
I WISH PEOPLE WOULD GET THE FACTS AND INFORMATION CORRECT BEFORE WADDING INTO A THREAD!!:mad::mad:
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I wish people would take a step back and make an informed decision as to whether the Icelandic Government can afford to and is willing to honour their promise! Maybe they can, maybe not, but after the rather vague Q&A session I just saw on TV with the Icelandic PM, it is far from clear.

A guarantee is only worth what the guarantor is able to pay. For example, there is little value in a 5 year guarantee for your car, if the seller has since gone out of business. That being said, I agree that people rapidly withdrawing cash will only worsen the situation.
 
booyaka said:
Since when can a COUNTRY be bankrupt?? where has that been confirmed from??
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Someone in this thread somewhere posted the figures, Iceland's GDP is £20billion, their banks liabilities are of the order of £100billion. The report about it on Channel 4 news said that Iceland was essentially bankrupt.
 
booyaka said:
Since when can a COUNTY be bankrupt?? where has that been confirmed from??
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20bil GDP, nationals bank debt 100bil, Iceland begging foriegn countries for money.

"The central bank's decision on Tuesday follows huge falls in the value of the Icelandic currency amid a financial meltdown in the tiny Nordic country."

Pity David Oddsson, the head of Iceland's central bank. Inflation is currently 8.7%, well beyond the bank's target rate of 2.5%, and well in advance of wage growth of 6.8%. The country's currency, the króna, is plunging and the bank last week raised its benchmark interest rate to a record 15.5% — the second hike in just three weeks.

http://www.usatoday.com/money/world/2008-04-01-iceland-banks_N.htm

Iceland have had problems for sometime now.

Just last week the authorities were forced to nationalise the nation's third-largest bank, Glitnir, taking a 75% share in the firm for 600m euros (£464m). Iceland's currency, the krona, is plummeting against the euro and the dollar. It is rated the world's third-worst performing currency – just above Zimbabwe's and Turkmenistan's. Inflation is at a whopping 14% per year, with some suggesting it could soar to 20%.

http://www.guardian.co.uk/commentisfree/2008/oct/06/iceland.creditcrunch
 
booyaka said:
Since when can a COUNTY be bankrupt?? where has that been confirmed from??
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A country can be bankrupt just like any other entity that owes money - they have repayments to make and if they can't make them they can get bankruptcy protection just like companies and people can.

I don't think Iceland is actually bankrupt yet, but they are very close. Argentina was the last country to default on its debt a few years ago.
 
http://www.fscs.org.uk/consumer/

FSCS gears up to assist Icesave's UK branch customers

In the light of the current uncertainties, the Financial Services Compensation Scheme (FSCS) is today gearing up in case it needs to assist approximately 300,000 savers at Icesave.

Icesave is the UK branch of Landsbanki Islands hf (trading here under the registered name Icesave). It is an EEA bank that is authorised by the Fjármálaeftirlitið (FME), the financial services regulator in Iceland. The Financial Services Authority in the UK has reported that Icesave is now expected to go into insolvency proceedings in Iceland and this would trigger an FSCS default.

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.

If the default is triggered as expected, FSCS will contact all UK savers directly with details of how to apply for compensation. Further announcements will follow and we will keep this page updated.
 
A message posted on http://www.tryggingarsjodur.is/ (the Icelandic Guarantee Fund) reads :-
From the Prime Minister of Iceland

In a press conference today Iceland's Prime Minister, Mr. Geir H. Haarde, said that if needed the Icelandic Government will support the Depositors' and Investors' Guarantee Fund in raising the necessary funds, so that the Fund would be able to meet the minimum compensation limits in the event of a failure of an Icelandic bank.

The Icelandic banks have top up agreements in the following countries:

* United Kingdom
* The Netherlands
* Norway
* Finland
* Sweden
 
chipperhead said:
I feel exactly the same, it's a disgrace what's happening.
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I'd like to see Robert Peston and his merry band of cohorts included in that. The BBC practically gloated about the fact that they'd 'revealed' the meeting that caused the banking share slump today. Well done you, now perhaps you might like to reimburse all the investors (including you and me) who might have lost out as a result of your glorious achievement. :rolleyes:
 
So by the looks of it my friend is going to get 50k compo... It's better than nothing but I doubt he's gonna be very happy about being 150k down! That's most of his life savings! I'm sure there are more than a few others with more than 50k in IceSave also...

Worst case scenario:

300,000 savers x 50k compo = £150,000,000,000 :eek:

I'm sure most people will get less than 50k tho as they are under the limit...
 
Been browsing on MoneySavingExpert forums and came across someone who is worried as they have £500k in there !

Nothing is certain yet as to what exactly will happen, so we'll see :)
 
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