UPDATED 8:28 8/10/08:- Bad news for Icesave & Landsbanki investors - Icelandic bank goes into administration - HotUKDeals
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UPDATED 8:28 8/10/08:- Bad news for Icesave & Landsbanki investors - Icelandic bank goes into administration

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REYKJAVIK, Oct 7 (Reuters) - Iceland has dismissed the board of directors of Landsbanki and has put the Icelandic bank in receivership, a minister told state radio on Tuesday. Commerce and banking min…
csiman Avatar
banned8y, 4m agoPosted 8 years, 4 months ago
REYKJAVIK, Oct 7 (Reuters) - Iceland has dismissed the board of directors of Landsbanki and has put the Icelandic bank in receivership, a minister told state radio on Tuesday. Commerce and banking minister Bjorgvin Sigurdsson said the move was made in cooperation with Landsbanki and the bank would be open and run as normal while the changes were taking place. Sigurdsson said Icelands Financial Supervisory Authority had put its own people in place of the banks board. Late Monday, Iceland adopted sweeping powers over its battered banks as its financial system tottered and its currency plunged.
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csiman Avatar
banned8y, 4m agoPosted 8 years, 4 months ago
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banned#1
Also Landsbanki Guernsey goes into administration with no compensation scheme!
#2
Do you have a link csi?

Have the government brought in £50k cover yet? I think it's today isn't it?
banned#3
The £50K cover was meant to come into force today. I'm more worried about the £22K I have in my ISA as the first £16K is covered by a 'passport scheme' under the Icelandic government. I'm pretty sure last night on the news the Icelandic prime minister stated that overseas investors would no longer be covered.

That would leave me £16,000 out of pocket!
#4
csiman
The £50K cover was meant to come into force today. I'm more worried about the £22K I have in my ISA as the first £16K is covered by a 'passport scheme' under the Icelandic government. I'm pretty sure last night on the news the Icelandic prime minister stated that overseas investors would no longer be covered.

That would leave me £16,000 out of pocket!


If they dropped the £16K wouldn't that mean that the UK government had to pick it up? As they top it up to £35k, so in effect they'd have to top up from £0?
#5
Also the bank is still running as normal isn't it? Could you not move that money to the uk?
#6
Can't believe they suspended shares in Kaupthing!!
banned#7
Benjimoron;3136481
If they dropped the £16K wouldn't that mean that the UK government had to pick it up? As they top it up to £35k, so in effect they'd have to top up from £0?

No, the FSCS only covers the amount from £16K to £35K (possibly to £50K).

http://news.bbc.co.uk/1/hi/business/7656387.stm
#8
from BBC

Iceland's government has taken control of the country's second largest bank, Landsbanki.

The bank, which trades in the UK as the internet bank Icesave, is being taken over 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.

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

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

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

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


Is this not for all customers or does that mean all Icelandic customers?
#9
umanga

Is this not for all customers or does that mean all Icelandic customers?
'

Don't think it really matters, I don't think they have the money to back up that claim anyway,
[mod]#10
Once the dust finally settles :

http://www.cartoonstock.com/newscartoons/cartoonists/tbr/lowres/tbrn40l.jpg
banned#11
umanga;3136500
from BBC...........

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


Is this not for all customers or does that mean all Icelandic customers?

http://www.reuters.com/article/businessNews/idUSTRE4962ER20081007

"Domestic deposits are fully guaranteed, as declared by the government. Landsbankis domestic branches, call centers, cash machines and internet operations will be open for business as usual. The objective of the IFSAs action is to guarantee a functioning domestic banking system."
#12
I maxed out ISA with them at the end of the last financial year....According to an article in MSE a few months ago we should still be covered by the passport scheme though right?
#13
Here's the MSE update:

# Icesave. Icesave has opted for the ‘passport exemption’ to the UK compensation scheme. If it went bust, the first €20,000 would be paid by the Icelandic compensation scheme, the remainder of the £50,000 from the UK scheme. With the state of the Icelandic economy, many are questioning whether its compensation scheme can pay out. It's important to remember Iceland has a reciprocal arrangement with all the Scandinavian countries schemes, so it should be pretty solid.

Stop Press 10.30am Tue 7 Oct. Icesave temporarily stops withdrawals: Icesave has currently stopped taking money and allowing withdrawals. This is due to it being nationalised by the Icelandic government, read this full article from the FT

We have contacted both of its UK press offices for more info, but they're in the dark as to what is happening. It’s hoped this is simply a technical part of the nationalisationscenario, which should provide more safety, however this is impossible to confirm. We are constantly monitoring the situation and trying to find out more. Updates will appear here and be included in the free weekly email

http://www.moneysavingexpert.com/savings/safe-savings#iceland
#14
Well the heat has brought this bank to liquidation.......
#15
[SIZE="5"]I wondered if readers here realise that with all the financial meltdown, the opposite is also true as there is a financial boom for some. If they US government had to fork out US$700 billion, then someone(some people) has made at least US$700 billion e.g. the head partner of Lehman Brothers said he made at least US$250m last year?[/SIZE] This is a lot of dosh for one bloke and he is not alone! These people are doing exceeding well with unimaginable wealth accummulated from people taking on debts by loans and gearing. In effect , hundred of millions of people's debt becomes the wealth of some.
banned#16
UPDATE

Russia lends Iceland €4,000,000,000 to stabilise its economy!
#17
csiman
UPDATE

Russia lends Iceland €4,000,000,000 to stabilise its economy!

Not sure if €4billion will stablise as one of their companies, Bauger went on the spending spree in the retail sector in UK alone. I think just this company alone had bank loans that run into billions of pounds... and the retail sector is rather fragile at the moment e.g. Woolworths
#18
one thing's for certain, I won't be buying any more 'fun gadgets' for a while, this has given me the shock that I needed I think to tighten the purse strings a bit
#19
Sadly, things are going to get far worse before they get better, this is going to have spin - offs for years to come.:x
#20
Tru say. This is just the beginning I agree, the landslide is yet to come...
#21
Speaking of which, here's the latest from the Beeb:
http://news.bbc.co.uk/1/hi/business/7656387.stm

Icesave savers warned on 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.
#22
Alfonse
Well the heat has brought this bank to liquidation.......


Receivership - not liquidation, big difference.
#23
skimask
Here's the MSE update:

# Icesave. Icesave has opted for the ‘passport exemption’ to the UK compensation scheme. If it went bust, the first €20,000 would be paid by the Icelandic compensation scheme, the remainder of the £50,000 from the UK scheme. With the state of the Icelandic economy, many are questioning whether its compensation scheme can pay out. It's important to remember Iceland has a reciprocal arrangement with all the Scandinavian countries schemes, so it should be pretty solid.

Stop Press 10.30am Tue 7 Oct. Icesave temporarily stops withdrawals: Icesave has currently stopped taking money and allowing withdrawals. This is due to it being nationalised by the Icelandic government, read this full article from the FTWe have contacted both of its UK press offices for more info, but they're in the dark as to what is happening. It’s hoped this is simply a technical part of the nationalisationscenario, which should provide more safety, however this is impossible to confirm. We are constantly monitoring the situation and trying to find out more. Updates will appear here and be included in the free weekly email

http://www.moneysavingexpert.com/savings/safe-savings#iceland


Does anyone know if withdrawals done online prior to 10.30am will go through?
showing as "processed" on the account at the moment.
thank you
#24
croydebay21
Does anyone know if withdrawals done online prior to 10.30am will go through?
showing as "processed" on the account at the moment.
thank you



Nobody seems to know, I think you may just be OK tho'.

Fingers crossed for you.
1 Like #25
Inactive
Nobody seems to know, I think you may just be OK tho'.

Fingers crossed for you.


cheers Inactive
I feel really bad about this, our daughter and SIL need a bit of help with financial and other stuff because of disability problems and I saw this bank in Money Mail as having high interest.
An estate tried to rip them off for 5K as a "holding deposit" for a flat they wanted to buy, SIL had taken it out of his ISA ready to pay, then DH saw the loopholes and "con" when checking the pre sales contract. So they paid it in Icesave !! This 5K has a "death wish" I'm sure, so hope you are right !
Good luck to all in getting Icesave deposits back/secured
#26
croydebay21
Does anyone know if withdrawals done online prior to 10.30am will go through?
showing as "processed" on the account at the moment.
thank you


I expect they'll do all they can to hold on to the money that hasn't already left. If this means stopping yours' whilst it's processing then I expect they'll do it.
#27
What an absolute nightmare! :x

My shares have gone through the floor over £10 to less than £2

I'm down £4200 on my ISA

My house price has dropped 14%

And now this, looked into how i try and start claiming my money back and basically its a matter of wait and see! :x

http://www.guardian.co.uk/money/2008/oct/07/savings.banks2
http://www.timesonline.co.uk/tol/money/savings/article4898782.ece
banned#28
*IMPORTANT UPDATE: 8am 8 October.* the Chancellor was on GMTV to talk about the £50bn rescure plan, he briefly spoke about Icesave and said

"I have good news for Icesave savers, I will be making a full statement in the house of commons later. I want to reassure Icesave savers, we are very annoyed Iceland has chosen to default on its obligations and will be pursuing them vigourously. Yet we are determined to help savers and we will stand behind them and depositors to ensure they get their money. We can do something to help in these exceptional times"

The inference was quite clear, the government will ensure savers get their £50,000 back.
banned#29
croydebay21;3139129
Does anyone know if withdrawals done online prior to 10.30am will go through?
showing as "processed" on the account at the moment.
thank you

All transactions either via bacs or chaps performed on sunday & monday have been reversed (i.e unpaid) :x
#30
csiman
All transactions either via bacs or chaps performed on sunday & monday have been reversed (i.e unpaid) :x



thank you for advising me, how do you know this? I have not seen this anywhere and the withdrawal has not been reversed.
#31
Good news. Alistair Darling has said that UK savers will be covered.

http://news.bbc.co.uk/1/hi/business/7658417.stm
banned#32
croydebay21;3144550
thank you for advising me, how do you know this? I have not seen this anywhere and the withdrawal has not been reversed.

Lots of posters on MSE saying Icesave reps told them no transactions have gone through since Octover 3rd.
#33
I've also got a Kaupthing Edge account that i can still access with just over a grand in it, how safe is that? :thinking: Is it worth withdrawing it, even if i get charged as its supposed to be a 1 year term? :?
#34
steevieboy4u
I've also got a Kaupthing Edge account that i can still access with just over a grand in it, how safe is that? :thinking: Is it worth withdrawing it, even if i get charged as its supposed to be a 1 year term? :?


Not sure whether they'll let you withdraw it. You're fully covered by the FSCS though.
#35
Newbold;3144842
Not sure whether they'll let you withdraw it. You're fully covered by the FSCS though.


Thought i was but i can see it being a major hassle claiming any money back if it all does go T*Ts up!
banned#36
steevieboy4u;3144821
I've also got a Kaupthing Edge account that i can still access with just over a grand in it, how safe is that? :thinking: Is it worth withdrawing it, even if i get charged as its supposed to be a 1 year term? :?

Leave it there. It is safe
#37
csiman
Leave it there. It is safe


Safe in terms of the FSCS protection, yes. But if you're likely to need the money quickly that's likely to present problems. After the way Iceland has behaved towards UK depositors I wouldn't want to trust any Icelandic financial institution with my money.
#38
A friends has 4k in Icesave. where does she stand?
#39
4Site
A friends has 4k in Icesave. where does she stand?


Her money is safe, but only because the UK government has stepped in to safeguard UK savings with Icesave. She'll need to make a compensation claim, but she will get the money in due course.

No thanks to Iceland, though, who are apparently likely to have action taken against them by the UK.
#40
"Savings bank ING Direct is buying up more than £3bn of deposits held by tens of thousands of British savers.

It says it is acquiring £2.5bn of deposits held by 160,000 customers from Kaupthing Edge, the internet-only UK retail arm of Iceland's biggest bank.

It is also taking control of £538m of savings held by 22,200 people with Heritable Bank, which was run by Iceland's Landsbanki - Icesave's owner.

Kaupthing Edge said it was not commenting on the move at this stage."

From BBC website

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