Wires 74 Posted October 7, 2008 Share Posted October 7, 2008 (edited) Icesave always seemed too good to be true - still so did BCCI 20 years ago and it took the best part of ten years for their depositors to receive any form of compensation . Also why should the British taxpayer bail out those who choose to bank their money overseas - especially somewhere as tinpot as Iceland ? Edited October 7, 2008 by Wires 74 Quote Link to comment Share on other sites More sharing options...
Badhairday Posted October 7, 2008 Share Posted October 7, 2008 (edited) Will your £16K worth of Icelandic Króna be worth the same by the time payment is made to you? It is likely the the Icelandic Króna is going to devalue dramatically.or am i misunderstanding the workings of these savings accounts and/or of the compensation scheme? My understanding is that Icesave guarantees to pay you upto 20,000K compensation. The UK FSA cover you for the difference between what Icesave reimburse you and the amount in your account.Now if the value of 20,000 krona collapses to say, 1000gbp, that would just mean the UK FSA is liable for a greater bailout. In fact, in the event that Icesave does not pay up, it might be to the benefit of depositers if the Krona collapses in value so that they have greater chance of recouping their money from the UK FSA. Edited October 7, 2008 by Badhairday Quote Link to comment Share on other sites More sharing options...
dissident junk Posted October 7, 2008 Share Posted October 7, 2008 I am starting to feel sick about all this. I've known for a while that things were rocky, but felt I was being a Chicken Little (I am known for my apocalyptic attitude) about the idea that banks would collapse all over. Now it is starting to feel like armagedeon out there. My husband is worried, and, to be honest, I am panicking a little bit. We had £2K in Icesave, and while it is not the bulk of our savings and we have other accounts, it is still two months net salary for me and we have sacrificed a lot to save what we have. I just feel that it is people like us -- the ones that work hard, take out no debt, never buy new things, save and try to be careful, and live within our means -- that have been walked all over in the last ten years: first with HPI, and now with this. Quote Link to comment Share on other sites More sharing options...
CrashConnoisseur Posted October 7, 2008 Share Posted October 7, 2008 nowthenagain #86: Politically I can't see Iceland doing anything else than fairly compensating savers. Just make sure you've got enough chest freezers stood by ready to receive your retirement fund. Quote Link to comment Share on other sites More sharing options...
The Ayatollah Buggeri Posted October 7, 2008 Share Posted October 7, 2008 Two word defence: Sovereign Immunity. That's a double-edged sword. True, you can't sue a sovereign state for money. But you can refuse to lend it any money or trade with individuals or businesses that operate under that state's jurisdiction. If that started happening with Iceland, they'd be sodomised. Unlike Zimbabwe, were you can emigrate over a land border if the going gets tough, it costs a considerable amount of money just to get off the island of Iceland. Virtually everything except some foodstuffs has to be imported. When I lived in the Faroes, virtually every single consumer product arrived in container lorries on the twice weekly car ferry from Hantsholm. Presumably similar arrangements apply to Iceland (though some stuff may arrive by air, as Iceland has long enough runways for heavy jets, whereas FAE does not). In both cases, if the money to pay for this stuff is no longer there, then they really will be going back to the days of the Vikings. Quote Link to comment Share on other sites More sharing options...
delboypass Posted October 7, 2008 Share Posted October 7, 2008 If i lose a penny it is going to hurt.. and it is really going to change me from a saver into a spendaholic... Why work and save money and lose it, when i have the power to spend it + more on top like other people have been doing... Im both interested to see how this works out but also sheeting myself as its my money (and really i should have been smarter) Panicked from HBOS probably going under and Llyods proposed venture failing... For 10 years ive stood by and watched the bubble inflate, not throwing money onto the house price and debt fire and now it is the shrewed who didnt get involved in the bubble get popped... Quote Link to comment Share on other sites More sharing options...
jimjones Posted October 7, 2008 Share Posted October 7, 2008 What part of:did you fail to understand With all due respect, that is a 'news' item written by who?, it's not signed, on a website not disimilar to this one. Are you asking me to take this as a credible source? http://news.sky.com/skynews/Home/Business/...s=searchresults Says: If an Icelandic bank fails UK customers are protected up to £50,000 The first £16,170 of their money is protected by Iceland The remaining £33,830 is protected by the UK government If Iceland goes bankrupt, the UK will not cover the first £16,170 Joint accounts will be protected up to £100,000 I think that's pretty clear... Quote Link to comment Share on other sites More sharing options...
huw Posted October 7, 2008 Share Posted October 7, 2008 What part of:did you fail to understand I understand that things can be written to sound comforting without making that comfort explicit: it understandably doesn't consider the case of an Icelandic default. I also understand that people often interpret things in a way that they wish/need to (and that this often leads them into trouble). With all due respect, that is a 'news' item written by who?, it's not signed, on a website not disimilar to this one. Are you asking me to take this as a credible source? That's up to you; any news source can get things wrong. Personally I find the article credible, YMMV. Quote Link to comment Share on other sites More sharing options...
huw Posted October 7, 2008 Share Posted October 7, 2008 http://news.sky.com/skynews/Home/Business/...s=searchresultsSays: If an Icelandic bank fails UK customers are protected up to £50,000 The first £16,170 of their money is protected by Iceland The remaining £33,830 is protected by the UK government If Iceland goes bankrupt, the UK will not cover the first £16,170 Joint accounts will be protected up to £100,000 I think that's pretty clear... Thanks. Quote Link to comment Share on other sites More sharing options...
bomberbrown Posted October 7, 2008 Share Posted October 7, 2008 What part of: The second level of protection is provided by the UK Financial Services Compensation Scheme (www.fscs.org.uk). This scheme tops-up your protection so that the protection under both schemes, is equal to 100% of the first £35,000 (rising to £50,000 with effect from 7 October 2008) of your total deposits held with us. did you fail to understand? Let me expand. Say I have 30k saved. If Iceland pay up, £16k + £14k from the FSCS = My £30k back. If Iceland don't pay up, £0k + £30k from the FSCS = My £30k back If 350,000 savers get to lose 16k each from the ambiguity of the FSCS, I PREDICT A RIOT!!!!! Quote Link to comment Share on other sites More sharing options...
mspL4 Posted October 7, 2008 Share Posted October 7, 2008 What part of:did you fail to understand? Let me expand. Say I have 30k saved. If Iceland pay up, £16k + £14k from the FSCS = My £30k back. If Iceland don't pay up, £0k + £30k from the FSCS = My £30k back If 350,000 savers get to lose 16k each from the ambiguity of the FSCS, I PREDICT A RIOT!!!!! No, actually that's B0ll0X, If Iceland goes bankrupt, the FSCS will pay you everything above the £16,170 limit which Iceland should be liable for, so you won't get your £30k back either way, you'll either get £16,870 from Iceland and £13, 130 from FSCS totalling £30k, or just £13,130 from the FSCS... mspL4 Quote Link to comment Share on other sites More sharing options...
delboypass Posted October 7, 2008 Share Posted October 7, 2008 Im up for a riot if i lose anything...! Surely the point of having regulators and financial compensation schemes is to see them work? Not fail on the first hurdle... Just tell the people who owe the money, their interest has gone up 4 points.. and from now Bankruptees will serve 5 years paying back people they owe... and all benefits stopped to everyone until we get back on our feet as a nation... Quote Link to comment Share on other sites More sharing options...
bomberbrown Posted October 7, 2008 Share Posted October 7, 2008 Thanks. Gulp! I just hope you and Jimmy Jones are wrong. Quote Link to comment Share on other sites More sharing options...
delboypass Posted October 7, 2008 Share Posted October 7, 2008 If iceland fail to pay, then it is up to its neighbours to pay... Quote Link to comment Share on other sites More sharing options...
jimjones Posted October 7, 2008 Share Posted October 7, 2008 Icesave always seemed too good to be true - still so did BCCI 20 years ago and it took the best part of ten years for their depositors to receive any form of compensation .Also why should the British taxpayer bail out those who choose to bank their money overseas - especially somewhere as tinpot as Iceland ? Bit of a myth there. It might of been part of the landsbanki, but it was a UK company, and part of the FSA - so therefore any icesavers haven't banked overseas it's in the uk. That's like saying people with abbey now bank in spain, or hsbc account holders bank in hongkong. Of course they way they subscribe to the FSCS is tad different than most banks - but it doesn't make them an overseas bank. TBH it would be shocking if the first amount of money wasn't repaid (even if iceland went under) after having the uk pm on tv saying "no british saver will lose a penny as long as their savings are within the compensation limits". Quote Link to comment Share on other sites More sharing options...
bomberbrown Posted October 7, 2008 Share Posted October 7, 2008 I'm also getting a bit pi$$ed off with the BBC's headlines calling us UK INVESTORS rather than UK SAVERS!!! I saved my money with a what I thought was a UK FSA regulated bank and I saved well below the FSCS limits. I do not feel that I invested it ffs! Quote Link to comment Share on other sites More sharing options...
delboypass Posted October 7, 2008 Share Posted October 7, 2008 Bit of a myth there. It might of been part of the landsbanki, but it was a UK company, and part of the FSA - so therefore any icesavers haven't banked overseas it's in the uk. That's like saying people with abbey now bank in spain, or hsbc account holders bank in hongkong. Of course they way they subscribe to the FSCS is tad different than most banks - but it doesn't make them an overseas bank.TBH it would be shocking if the first amount of money wasn't repaid (even if iceland went under) after having the uk pm on tv saying "no british saver will lose a penny as long as their savings are within the compensation limits". Thanks Jim... I think many of us are jumping the gun...they have only been nationalised like northern rock....B&B.....(saving UK savers with tax money!!) lets stay calm and see what happens... then when it goes bad....then kick off.... Quote Link to comment Share on other sites More sharing options...
Charlie Don't Surf Posted October 7, 2008 Share Posted October 7, 2008 I saved my money with a what I thought was a UK FSA regulated bank and I saved well below the FSCS limits. I do not feel that I invested it ffs! Yep, me too. But if the FSA are going to allow a £16K write off than the government are going to have to start making us look like risk takers rather than sensible tax payers Quote Link to comment Share on other sites More sharing options...
AteMoose Posted October 7, 2008 Share Posted October 7, 2008 (edited) Thanks Jim...I think many of us are jumping the gun...they have only been nationalised like northern rock....B&B.....(saving UK savers with tax money!!) lets stay calm and see what happens... then when it goes bad....then kick off.... They have been nationalised, but the website has been locked down and the money has been locked in! Something similar happened to NR but it was only due to an overloaded website! Edited October 7, 2008 by moosetea Quote Link to comment Share on other sites More sharing options...
delboypass Posted October 7, 2008 Share Posted October 7, 2008 i logged in at 2.48pm and printed out a screen of my accounts... Just for verification and reference of course...not that i would be using in an FCSC compo case... Quote Link to comment Share on other sites More sharing options...
AteMoose Posted October 7, 2008 Share Posted October 7, 2008 i logged in at 2.48pm and printed out a screen of my accounts...Just for verification and reference of course...not that i would be using in an FCSC compo case... Ditto.... Quote Link to comment Share on other sites More sharing options...
warpig Posted October 7, 2008 Share Posted October 7, 2008 Kunts + 1. Pack the ******er up or I will unleash a torrent of abuse on you. beat me to it Simon, although you articulated it far better than I could ever muster. Kunts is alls I would add. V. disappointing. Quote Link to comment Share on other sites More sharing options...
boredwithforum Posted October 7, 2008 Author Share Posted October 7, 2008 Icesave DEFAULTED - money does not go back to UK savers Quote Link to comment Share on other sites More sharing options...
bomberbrown Posted October 7, 2008 Share Posted October 7, 2008 Look at this: http://www.icesave.co.uk/regulatory-details.html Then this: http://www.fscs.org.uk/consumer/how_to_claim/deposits/ Then this: http://www.fsa.gov.uk/Pages/Library/Other_...nks/index.shtml Then this: http://www.fsa.gov.uk/pubs/list_banks/2008/sep08.pdf Page 4. Landsbanki there with ING Direct, Kaupthing etc. God, I feel like I'm clutching at straws here. Quote Link to comment Share on other sites More sharing options...
Guest X-QUORK Posted October 7, 2008 Share Posted October 7, 2008 Just called the FSCS and they confirmed that the Icelandic scheme is reponsible for the first £16k or so, thereafter the FSCS kicks in up to £50k. He said that at the moment the bank is still solvent and until it is declared otherwise, no compensation can be paid out. If and when insolvency is declared, the FSCS will write to very UK saver with details of how to claim compensation. Quote Link to comment Share on other sites More sharing options...
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