ICESAVE goes bust.
 

With approx 300,000 UK savers savings. :eek2:


icesave - high interest savings accounts

Iceland government seizes control of Landsbanki | Business | guardian.co.uk

The have been effectvely taken over by the Icelandic government, and they are seeking a rescuse package from Russia.

Does that mean all accounts are "frozen"

:D

(sorry)

Edited for accuracy (and spelling ;) )

:D

I was wondering if it was a cooler version of kwiksave

First airlines and now banks I've never heard of going bust

The Russian loan is nothing to do with Icesave, rather a loan to the Icelandic Govt to keep the Icelandic economy running (and, presumably, special dispensation to have an influence over Icelandic politics in the future).

The Icelandic Govt. has said all Icelandic nationals will get get ALL their money back, but the 300,000 Brit savers will get only the legal minimum (20,000 Euro's). The rest (up to £50k) they must pursue the UK Govt. for.

I would be surprised if the Icelandic Govt. have the cash to pay out 300,000 x £17k... £5billion


... £15,000 from every man, woman and child in Iceland...

Isn't it like Kaupthingedge where the UK people are protected under the FSA?

(As I just checked their website as I have most of my savings there ...)

Steve

Shouldnt a gone ta Iceland ....

Similar, but not quite, Boxst - the first 20,000 Euro's is from the Icelandic Govt., the rest (up to £50k) is from UK authorities.

But no-ones tested any Governments 'guarantee'...

phew...mrs g nearly put some money away with them a couple of months ago

I had roughly 13k in icesave Isa's. I tried to transfer it into my current account last night using online banking, only to discover they hadn't sent me out a user ID. Was going to to it tonight by phone...but too late. Didn't even realise what had happened until I got home.

Only time will tell now I suppose.

I had 6.5 with them, wishing I had just spent it on mods now :(

OK, can someone enlighten me?

UK nationals choose to put their money in an Icelandic bank in order to get higher rates than UK banks offer, (I assume this is the reason?).

The Icelandic bank gets into difficulties.

Suddenly, those savers expect us, the UK taxpayer, to underwrite their losses?

How the fek does THAT work, then?

Alcazar

They are a bank in the UK in that they comply with the FSA rulings etc...

Although much to my surprise the Icelandic goverment are held accountable for the first €20K: Are your savings safe?: Full guide to protect your cash. UPDATED...

Steve

Steve

Alastair Darling has just said on radio 4 that the government will 'protect' investors in Icesave (because the icelandic government protection scheme didnt seem to have any money in it!!!)

alan

Iceland the new Cuba with Russian missiles targetted at the UK? Bears flying out of Reykjavik :eek:

UK saver *should* have been compensated out of the Icelandic scheme. But apparantly there is nothign in it. So the Government has said it will compenstate all UK savers to the full amount.

All of you will moneey in will be ok.

Iceland has effectively a bankrupt government so therefore can't pay investors.

However, in the UK, we are promised £35K each person if the provider we invest in goes under.

Has anyone actually worked out how our government could pay these £35K?

Its nonsense. Our government could no more afford than Iceland.

In this instance the Government has already said it will *fully* compenstate any UK Icesave depositer.

I know, but there just isn't enough money to go around if they all go pear shaped.

I've got a bet on with my work mate that the FTSE drops below 4 by the weekend :D

Well no - But then the Government is stopping short of guaranteeing *all* savers depostis.

Is it morally right to back up IceSave with taxpayer's money though?

Les

Well it's not backing up Icesave; it's making sure the UK citizens who saved with icesave don't lose everything, because as it stand, the Iceland government is not going to compensate them.

We'll all get a dividend when when they land the big one....!

- well gordon will anyway :rolleyes:

Icesave was a registered bank in the UK with offices based in Newcastle so I am guessing that is why it is covered.

The investors were not opening accounts directly in Iceland

That's something I was hoping they'd announce this morning. I don't have such sums of money that is above £50k in any one establishment, but my parent do. In RBS to name just one.

I think if the Government doesn't support UK savers on this first collapse, then it would send a signal to all savers - "GET YOUR MONEY OUT OF EVERY BANK!" and the ensuing run on the banks would see an almighty collapse of capitalism and send us back to feudal times - me offering Les a bunch of carrots for a go on his motorbike, for example.

Plus if lots of people lost substantial amounts of money, the UK would fall into a depression.

Darling said this mornign he was making a special case in this instance.

The UK savers *should* have been compensated by the Iceland scheme, but ther ei sno money in it.