Icesave

[pathfinder]

I swear im going mad. Im beginning to think having a sub 100k mortgage at 5.34% (linked to base rate) paying debt off, is safer than having a savings account geez. At least i know they are not going to wipe my debt clean compared to cleaning my savings out ^^.

[jimjones]

How is it Labour fault...??

Well after Northern rock collapsed from giving out 125% loans, and then HBOS collapsed...and the failure and lack of speed of the UK Government to protect my savings, I had to diversify my savings into seperate FSA regulated entitys unfortunately Icesave being one of them...

I think Labour has done nothing over the last 10 years when house prices and debt has tripled...

Well all i can do is hold my breath on Icesave...

Take it Interest payments are dead in the water too if i ever get back any of my original capital (

So a private organisation running into financial difficulty at a time of international financial instability - is the governments fault? You could argue they should of made 125% loans illegal, but if people want to borrow more than they can afford and companies are willing to lend it then they should have that choice - if it was outlawed then there would be uproar.

Your savings in NR were never "not protected" it's just everyone panicked (understandably), so the government had no reason to rush in.

This is a global problem, and blaming the current government just doesn't add up. Despite what the mail says, everything that goes wrong isn't the goverments fault, and everything which goes right isn't inspite of the government. You takes your chances and makes your choices..

You do know that FSA isn't Gordan Brown don't you?

You've not lost your money yet... If you had read the terms when you opened your account then you would be fully aware of the situation regarding Icesave and the FSA. I'm sure nobody will lose anything just don't panic.

[nowthenagain]

When Uncle Sam wakes up he will be forced to bail out Iceland due to the hugely strategic position that Iceland holds geographically - mid-Atlantic hence allowing the US to keep a block on Soviet ships slipping out of Murmask into the Atlantic and, of late, close to all that oil in the Artic.

I agree with that. Disaster will not be allowed to happen. Iceland has always been hugely important to our American chums and NATO.

[redgenieuk]

I'm going to have to disagree on the interpretation here.

That to me means that if Iceland says "F'#k you", then the FSCS is left holding the baby.

I feel a bit more confident now, than I did an hour ago.

Thank god. I feel a little better. 35K plus interest (only about £600) and might get the interest if I am lucky too!

[bomberbrown]

Oh, and if I do end up losing everything, I'm off round to torch Bjorks London pad.*

* MI5 - Thats a joke btw.

[Icingonthecake]

First post here, but been lurking for a while now.

I put £50,000 into ICESAVE back in February (One year fixed rate bond), in a bit of a rush as I saw that rates were likley to fall and they were the only ones not pulling their fixed rate deals. Like a mug, I put the money in there and then did a bit of reasearch and started to read about the problems with Icelandic banks, and then saw the high level's the Credit Default Swap was trading at. I then realised my obvious mistake (greed / putting Intrerest rate risk before Credit risk / laziness etc etc), I really should have known better as I work for a bank.

Anyway I did try and get the money out, sent letters saying I needed the money for a deposit on a flat (which was true at the time - although I quickly pulled out of that after reading a few things here) but ICESAVE would not budge, they took 2 months to reply to our letter and it was an emphatic no. So Ive been on tenterhooks sicne february willing them to stay solvent till february, alas, not to be it seams.

So Im interested (invested) in seeing how this pans out re: the compensation scheme. I have other funds in ING and wondered about taking that out and sticking it in my current accoutn, but seeing news about RBS this morning makes me concerned that it could be a case of "out of the frying pan, into the toilet".

Cheers

[nicebuyer]

http://www.icesave.co.uk/financial-protection.html

Providing you have not depositied more than £50k, I wouldn't actually define that as 'speculating', would you?

That sounds a bit like "Investing in property isn't speculating, house prices always go up".

Yes, one will be covered by the FSCS. I'm making the point that people should stop moaning about the decision they made to put their money into Landsbanki. They were attracted by the IRs and chose to invest, that's what they did, they invested. It's what I did. I have a little more than the £50k in ICE. I doubt I'll lose any of it but if I do then I will go to my planning sheet and it will show that I covered that investment in other ways. You have to always make sure that any exposure is covered.

I find it ludicrous that someone puts their money into ICE, doesn't wonder why IRs are above market levels, takes no notice of any warning signs and then blames Brown (when in fact Brown is responsible for the £35k and now £50k deposit guarantee.) If anything right niow they should be praising Brown for today's £15k increase.

[shindigger]

You chose ICE. You were not forced to do anything. You could have gone to NS&I could you not? But no, you wanted higher interest rates. If you really cared about security your money would be sitting safely with NS&I not bloody Landsbanki. So stop blaming Labour. Either you were too greedy or too incompetent.

None of that makes it Brown's fault. It's your fault for not researching where you're putting your money. At worst you put your money into a 6m fixed in August. August? You didn't think to type in ICE or Landsbanki into Google before doing so? You put your life savings into a foreign bank because you were working? I feel really bad for you but I think you need to take some responsibility rather than blaming it all on Brown. Then again your attitude towards finances is fully explained by the latter part of your answer.

Where did i say August?

Get your phucking facts right.

And by th way ive never had a credit card in my life.

The game has changed dont you get it.

QUNT!

[mbga9pgf]

I agree with that. Disaster will not be allowed to happen. Iceland has always been hugely important to our American chums and NATO.

Sorry to disappoint. The yanks pulled out of Keflavik last year. They dont give a sh*t about iceland. Its all about the middle east these days.

[Peter Hun]

Icesave Insolvent

Icesave savers warned on accounts

Icesave announces it is freezing its customer's accounts

Customers of the Icesave internet bank have been warned they will probably have to claim compensation for money held in their savings accounts.

The authorities in the UK are preparing for the bank's parent in Iceland, Landsbanki, to be declared insolvent.

The Icelandic government took control of the county's second biggest bank this morning to stop it collapsing.

Claims from Icesave's UK customers will be handled by the Financial Services Compensation Scheme (FSCS).

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.

We are gearing up to be ready to do whatever we can in order to get compensation back to UK savers as quickly as possible

FSCS spokesman

The UK's FCSC will pay out the rest of the claims, up to the newly introduced ceiling of £50,000 per person.

A spokesman for the FSCS said however that UK customers of Icesave will not have to make two separate claims and that it would probably handle all UK claims on one form.

"We are working with the Icelandic authorities to confirm the procedure," a spokesman said.

"We are gearing up to be ready to do whatever we can in order to get compensation back to UK savers as quickly as possible," he added.

Insolvent

The Financial Services Authority (FSA) said it was expecting Icesave's parent bank to be declared insolvent soon, following its takeover by the Icelandic Financial Supervisory Authority (IFSA).

Icesave says that it is not currently allowing customers to take money out of their accounts or to put in deposits.

Landsbanki is the second Icelandic bank to be taken over to prevent a collapse of the country's banking system.

In an announcement on state radio, the commerce and banking minister Bjorgvin Sigurdsson said the board of directors of Landsbanki had been dismissed and the bank put into receivership.

He said the state takeover was made "in co-operation" with Landsbanki and the bank would stay open and operate as normal.

Glitnir, the country's third-largest bank, was nationalised last week to stop it being driven into bankruptcy by the international financial crisis.

Emergency

In a parallel move, Iceland's largest bank Kaupthing has been given a loan of 500m euros from the country's central bank.

"The central bank of Iceland has provided Kaupthing with a 500m euro loan to facilitate operations, and Kaupthing is committed to working with the government to ensure regular workings of the Icelandic financial system," the bank said in a statement.

Meanwhile there is confusion about whether or not Russia has agreed to help the Iceland central bank itself.

The bank said Russia would give it a loan of 4bn euros lasting for three to four years, to strengthen its foreign exchange reserves.

"The Russian Ambassador to Iceland, Victor I Tatarintsev, informed the chairman of the board of governors of the central bank of Iceland this morning that Russia would grant the central bank a loan in the amount of 4bn euros," said the bank in a statement.

"Prime Minister Putin has confirmed this decision," it added.

However the Russian ministry of finance denied explicitly that any decision on giving a loan to Iceland had been made.

On Monday the Icelandic government passed emergency legislation to try to rescue the country's banking system.

Prime Minister Geir Haarde said the new laws would help the island avoid "national bankruptcy".

Iceland also decided to offer an unlimited guarantee for all bank customers' savings accounts.

Continued operations

The website of Icesave tells customers that: "We are not currently processing any deposits or any withdrawal requests through our Icesave internet accounts.

"We apologise for any inconvenience this may cause our customers. We hope to provide you with more information shortly," it adds.

A spokeswoman for the bank said the website was not operating "due to technical difficulties", but did not offer any further reason for it being down.

Explaining its action in taking over Landsbanki, the IFSA said: "Based on new legislation, the Icelandic Financial Supervisory Authority (IFSA) proceeds to take control of Landsbanki to ensure continued commercial bank operations in Iceland.

"Domestic deposits are fully guaranteed, as declared by the government.

"Landsbanki's domestic branches, call centres, cash machines and internet operations will be open for business as usual," it added.

http://news.bbc.co.uk/1/hi/business/7656387.stm

Edited October 7, 2008 by Peter Hun

[boredwithforum]

so now the UK as to find monies for compensation fooking hell, this is getting naughty, something as to give

[nowthenagain]

Oh, and if I do end up losing everything, I'm off round to torch Bjorks London pad.*

If I lose anything then I'm going on a high street rampage whereby I'll claim goods to the value of what I'm owed:

Starting with: Iceland: Frozen food for a year (possibly most useful for the next year), West Ham: Craig Bellamy (I collect garden gnomes).

Edited October 7, 2008 by nowthenagain

[geoffk]

A country the otherside of the world has to sieze control of it's banks - how exactly does that relate to the labour government of our country?

please!!! If you cannot see the link there is no hope for you...think 100% and 125% mortgages ect ect ect....

[Orsino]

The collapse of the Icelandic banking system is not Labour's fault but the calamity befalling Iceland nails one of Labour's lies. This financial disaster is certainly international in scope but, as Iceland beautifully illustrates, the implications for each country are different and very much the responsibility of each national government. Neither the Icelandic nor British governments can claim that they were helplessly swept along by the boom and bust; they were willing architects of the unstable edifices that are now collapsing. They will pay the political price. They sow the wind and they will reap the whirlwind.

[The Masked Tulip]

Sorry to disappoint. The yanks pulled out of Keflavik last year. They dont give a sh*t about iceland. Its all about the middle east these days.

They only have to have a sniff of Russian involvement with Iceland and they will be riding to the rescue.

I suppose the Icelandic PM will be on the phone right now to their lone herring catcher in the Artic asking him how the catch is going and asking if he has spotted any black oiley stuff yet

[nowthenagain]

Greed is enternal. As is blame.

[nicebuyer]

Where did i say August?

Get your phucking facts right.

And by th way ive never had a credit card in my life.

The game has changed dont you get it.

QUNT!

You said your 6 month fixed runs out sometime in 2009. At the very least that means January. Therefore the earliest you put your money in is July/August. My guess is that you put it in a little later than that but we're getting off the point.

I truly hope you get all your money back, I'm hoping I get mine back too.

[Converted Lurker]

so now the UK as to find monies for compensation fooking hell, this is getting naughty, something as to give

your speeling already has

[newbie]

Icesave Insolvent

http://news.bbc.co.uk/1/hi/business/7656387.stm

Protecting the locals but washing their hands of UK liabilities over their compensation scheme minimum is not going to win them many friends in the UK.

[jimjones]

"Icelands three banks have combined assets of £4 Billion and debts of over £100 Billion owed to other banks. The population of Iceland numbers around 300,000 which indicates a per capita debt of over £33 Million per head" - Wow... and you think you've got worries..

[nowthenagain]

Protecting the locals but washing their hands of UK liabilities over their compensation scheme minimum is not going to win them many friends in the UK.

Where in that article does it say Iceland are 'washing their hands of UK liabilities'?

It doesn't. I says that compensation will be handled on one form by our FSA. So the procedure would, in effect, be exactly as if Icesave were 100% covered by the FSA..

Scaremongering?!

Edited October 7, 2008 by nowthenagain

[history repeats]

We could be days away from the total collapse of western society as we know it. Although I don’t think a collapse is going to happen I think this is a definite wake up call for ourselves and our so called leaders who don’t appear to have a fecken clue what they are doing. They potentially could lead us like rats to the river pied piper style whistling the tune of brown and co of how we have solid economic fundamentals blah blah blah. If people are unable to get money out of uk cash machines I don’t give a t0ss what brown says we will have the military on the streets within days. When people can't get food, they will riot, steal, kill as blind survival honed over millennia not yet apparent but still there lurking in all of us in the depths of our sub-consciousness is revealed. Events over the last few days have ratcheted up our economic defcon status…

I would say we are on economic def con 4,,, I recon that central planners in government have run these scenarios through,,, planning with local government etc how to distribute food etc…. control law and order should such a scenario happen. Hurricane Katrina showed us what could happen, the city made defcon 2. Let's hope we can all still get cash out of the cash machines. If we now had a serious terrorist attack in the worlds financial capitals in London and New York etc on a scale of the twin towers, a co-ordinated attack of some kind then I think that would bring western society to its knees. Let's hope we don’t.

Defcon 4 Partial collapse of banking system, system is seizing up. (WE ARE HERE NOW)

Defcon 3 Total collapse of Banking system, people cant get savings out, localized riots, people stop going to work, stay at home to ensure safety of family.

Transport difficult, food and fuel rationing as people begin to stockpile.

Defcon 2 Military on the Streets, Shooting of looters, Breakdown of law and order, Widespread Electricity blackouts. Total chaos in major cities,

Birmingham, Liverpool, London, Manchester enforce of curfews after dark. Rural areas and smaller towns better equipped to cope due lower

population density and better community spirit. In the inner cites it is dog eat dog as jails are emptied and criminals run riot on the streets.

Defcon 1 Total Breakdown of Western Society, Full Collapse of organized society, No electricity, transport, Establishment of local community rule and

justice as people try and gain order, Military break ranks to look at their own.

Edited October 7, 2008 by doggadogdog

[history repeats]

edit

Edited October 7, 2008 by doggadogdog

[R K]

I gave all my money to a nice man at an Inside Track seminar.

He promised I would get it all back with a really good profit at the end.

Now they've gone bust and I'm really worried.

What can I do?

[newbie]

Where in that article does it say Iceland are 'washing their hands of UK liabilities'?

It doesn't. I says that compensation will be handled on one form by our FSA. So the procedure would, in effect, be exactly as if Icesave were 100% covered by the FSA..

Scaremongering?!

The BBC article says that they will pay out up to their compensation limits on UK liabilities but that ""Domestic deposits are fully guaranteed, as declared by the government.".

This seems to mean that if an Icelander has 100,000 quid in their account, the Icelandic government is guaranteeing the lot. If someone has 100,000 quid in Icesave, they get back 50,000 from the Iceland scheme and the FSA combined but Iceland does not cover the remaining 50,000. Correct me, if I've misread the BBC piece.