BIG NEWS FOR ICESAVERS

I have savings myself in Icesave so obviously I agree with the funds being guaranteed.

BUT surely if Icesave was allowed to part take in a government backed savings scheme (cash ISA?) these should be guaranteed? Standard savings accounts I would understand, but a cash ISA is supposed to be a risk free investment :confused:
 
platypus said:
I'm sorry for those that have savings in IceSave, but this money must not be guaranteed by the chancellor, it's madness.

This is money being invested in a foreign country, that is now being guaranteed by our tax money? This is a incredibly dangerous move to make, and it's insulting to those of us who invest in this country, and pay taxes.
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I agree. Anyone investing in a foreign bank should accept that the UK should not be liable.
 
OoOverclockaoO said:
I have savings myself in Icesave so obviously I agree with the funds being guaranteed.

BUT surely if Icesave was allowed to part take in a government backed savings scheme (cash ISA?) these should be guaranteed? Standard savings accounts I would understand, but a cash ISA is supposed to be a risk free investment :confused:
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Why did you make the silly mistake of investing with a foreign bank, why should i as a tax payer pay for your mistake for investing with a foriegn bank.
 
awaybreaktoday said:
Why did you make the silly mistake of investing with a foreign bank, why should i as a tax payer pay for your mistake for investing with a foriegn bank.
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I'm no expert here, but I don't see a Cash ISA as a risky investment - if there was a risk of people losing their funds in a Cash ISA , why was Icesave allowed to offer these accounts if not properly regulated? Bearing in mind that a cash ISA is a scheme backed by the government to encourage people to save - not very encouraging if people lose their money :p
 
Apparently the UK government is now taking legal action against the Icelandic government and banks.

This is only just getting started folks :p
 
OoOverclockaoO said:
I'm no expert here, but I don't see a Cash ISA as a risky investment - if there was a risk of people losing their funds in a Cash ISA , why was Icesave allowed to offer these accounts if not properly regulated? Bearing in mind that a cash ISA is a scheme backed by the government to encourage people to save - not very encouraging if people lose their money :p
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It's investing overseas thats the risky part, especially in a banking system that isn't at the very least EU or FCS regulated.

Now it turns out that, lo and behold, there isn't actually any money in Iceland's financial compensation system, why are we the ones to bail you out?

NathanE said:
Apparently the UK government is now taking legal action against the Icelandic government and banks.
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Nonsensical pandering and headline grabbing. The Icelandic FCS has no money. What is this legal action going to achieve? Compensation? From whom?
 
platypus said:
Nonsensical pandering and headline grabbing. The Icelandic FCS has no money.
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I don't think we're after money. We're after the people that plotted to mysteriously start a massive advertising campaign in the Spring of this year for Icesave with a headline grabbing 7% interest rate and then proceed to collapse taking ~300,000 UK deposits with it. Illegal business practices etc... false advertising with the assurances about compensation...
 
Iceland is bankrupt you were all told by number of us yesterday, however it looks like they have been so for some time now.

quoted from platypus: "It's investing overseas thats the risky part, especially in a banking system that isn't at the very least EU or FCS regulated."
 
OoOverclockaoO said:
I'm no expert here, but I don't see a Cash ISA as a risky investment - if there was a risk of people losing their funds in a Cash ISA , why was Icesave allowed to offer these accounts if not properly regulated? Bearing in mind that a cash ISA is a scheme backed by the government to encourage people to save - not very encouraging if people lose their money :p
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A cash ISA in itself is a good thing to have. Investing in a foreign bank is the risky bit.
People took the risk, got bitten, and now the British tax payers are paying for other people's poor investment choices again?
 
awaybreaktoday said:
Why did you make the silly mistake of investing with a foreign bank, why should i as a tax payer pay for your mistake for investing with a foriegn bank.
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What about all the money the government is injecting into the British banking system? It isn't me (or you) that has got us into this mess so why are we having to pay to get us out of it?
 
NathanE said:
I don't think we're after money. We're after the people that plotted to mysteriously start a massive advertising campaign in the Spring of this year for Icesave with a headline grabbing 7% interest rate and then proceed to collapse taking ~300,000 UK deposits with it. Illegal business practices etc... false advertising with the assurances about compensation...
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Which is why I said its just a headline action. Labours 'release bad news on a good news day' trick as usual. Arresting those concerned won't remove the fact that the government has yet again screwed the tax payer over.
 
NathanE said:
I don't think we're after money. We're after the people that plotted to mysteriously start a massive advertising campaign in the Spring of this year for Icesave with a headline grabbing 7% interest rate and then proceed to collapse taking ~300,000 UK deposits with it. Illegal business practices etc... false advertising with the assurances about compensation...
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I still cant see why people were investing in Iceland then because when i looked at it back then Iceland was in major trouble and thought how could Icesave guarentee these rates. Looks like they were just doing it to steal money from UK savers, this is worse than them Africans Scammer sceams, maybe this is the route african scammers will now take.
 
awaybreaktoday said:
He also said Iceland is defaulting on all foreign payments meaning Iceland is offically bankrupt.

Yes this is one major step and change of government policy.
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do you have a link for this, if its true i would be very suprised, i knew iceland was in trouble and had approached russia for a loan, but defaulting on soverign debt Wow.
 
awaybreaktoday said:
Iceland is bankrupt you were all told by number of us yesterday, however it looks like they have been so for some time now.

quoted from platypus: "It's investing overseas thats the risky part, especially in a banking system that isn't at the very least EU or FCS regulated."
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But Icesave were shouting from the roof tops that they were covered. They reckoned they were covered by Icelandic compensation and then some compensation in the UK.. blah blah. It was all cow manure.

That's the problem. They targetted the UK with false advertising. They even got a few big names on their side in the media world to back them up. It was only 4 months ago that Icesave was being discussed in the FT and such like saying "oh yes yes yes don't worry they are perfectly legit and safe to put your money there"...

It all makes perfect sense for a country which knew it was in serious problems probably by late 2007. So it coordinated with its banks to get as much foreign investment in as possible. So that when they did collapse (and they knew it was just a matter of time) they would at least be able to soften the blow by taking a load of foreign (i.e. UK) money with them.
 
Garp said:
A cash ISA in itself is a good thing to have. Investing in a foreign bank is the risky bit.
People took the risk, got bitten, and now the British tax payers are paying for other people's poor investment choices again?
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The majority of people that held savings with Icesave were not aware that there was any risk.
 
We should also remember that bailing out Icesave customers will reduce the size of the money pot available if a UK bank were to go under. On the other hand, it's not impossible that a failure to compensate people with Icesaver accounts could cause a run on a UK institution. Most people have no idea now complex the banking system is, all many people would see is Uk depositors losing their money. Arms would be thrown in the air, with screams of "think of the children". Next thing we know there are queues outside banks on the high street. While utterly stupid, I've given up believing that there is any sanity in the banking sysem.
 
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platypus said:
Which is why I said its just a headline action. Labours 'release bad news on a good news day' trick as usual. Arresting those concerned won't remove the fact that the government has yet again screwed the tax payer over.
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I think the government feels slightly guilty that they allowed Icesave to operate in the UK for this long. Really they should have picked up on the illegal business practice ages ago and prevented them from doing business here.
 
I know my money that is in icesave at the moment will go straight into a British bank when I get my hands on it!
 
OoOverclockaoO said:
The majority of people that held savings with Icesave were not aware that there was any risk.
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And whose fault is that?

Agreed IceSaves advertising campaign was superb, almost flawless. But at the end of the day, the economy in Iceland has been on the rails for a while, and it's all been up there for everyone to see.

Investors not being able to read the signs, not seeing the signs, or not knowing the signs of risk should not be investing.

Investing is the act of a person or company puts money into financial schemes in the aim or expectation of achieving a profit. The key words there are expectations. There are always risks.

NathanE said:
I think the government feels slightly guilty that they allowed Icesave to operate in the UK for this long. Really they should have picked up on the illegal business practice ages ago and prevented them from doing business here.
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They bloody well should feel guilty. Sadly it is us that will end up paying.
 
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