Anyone here still banking with an Icelandic bank?

[sasguru]

Er, where is all of this magic spare cash that our illustrious Government seems to be relying on to bankroll those who decided to play patty cake with big-bucks-returns numpty banks?

That is indeed what the wise are asking.

[The Lone Gunman]

Er, where is all of this magic spare cash that our illustrious Government seems to be relying on to bankroll those who decided to play patty cake with big-bucks-returns numpty banks?

I think they are hoping nobody calls their bluff. As long as people do not panic and leave their money where it is guaranteed HMG will not need to pay out on their promise.
If there is a run I am guessing that savers will be issued with some sort of Govt. bond that you have to keep for some time which will be just as worthless as the bank going down with your savings. Or they will print so much money that inflation will negate your savings anyway.
Just better hope everybody leaves their money where it is.

[Cyberman]

That is indeed what the wise are asking.

No.... because the wise already know !!!

[rootsnall]

Looks like its official now statement from Treasury -> http://www.wired-gov.net/wg/wg-news-...4?OpenDocument

Think I've aged 10 years since yesterday.

Phew ! A close shave and what would probably of been a life changing event and not a good one. Thay can't back out of that statement.

Remember 50K max and probably better in solid UK institutions

[Bumfluff]

I think they are hoping nobody calls their bluff. As long as people do not panic and leave their money where it is guaranteed HMG will not need to pay out on their promise.
If there is a run I am guessing that savers will be issued with some sort of Govt. bond that you have to keep for some time which will be just as worthless as the bank going down with your savings. Or they will print so much money that inflation will negate your savings anyway.
Just better hope everybody leaves their money where it is.

I have no plans to take much of mine out if I get it back. With ICESAVE I admit I knew things were not good but I did not expect the Icelandic government to do what they did. I held off pulling the £ out due to not wanting to add to the panic, so I sat tight, I thought if it came to it someone would step in like ING did with KE. I'm happy to tie up my money for a few years if need be, I will never use a foreign bank again.

[ASB]

I hope you get your money back from HMG guys, but I'm getting uneasy.
Can HMG really afford to guarantee every deposit in the country?

Whilst it's good news for anybody with >50k, the numbers are not huge. The total at risk (assuming nil value of the assets seized) was apparently 4bln.

But, it has set a very dangerous precedent in my view. What happens with the next one....

[The Lone Gunman]

But, it has set a very dangerous precedent in my view. What happens with the next one....

Precedent is an issue. They will now have to offer the same terms for every bank. How could they justify bailing out those greedy twats who jumped at the higher interest rates abroad for the full amount, but only offer the first 50K in a UK bank etc.

[Bagpuss]

Precedent is an issue. They will now have to offer the same terms for every bank. How could they justify bailing out those greedy twats who jumped at the higher interest rates abroad for the full amount, but only offer the first 50K in a UK bank etc.

Greedy t*** eh? What if Abbey et al (including cater allen) get into trouble, are their investors greddy t***. they are Spanish owned, no different to Kaupthing in that they are UK subsiduary of a foreign bank.

[ferret]

I hope you get your money back from HMG guys, but I'm getting uneasy.
Can HMG really afford to guarantee every deposit in the country?

Taken from the taxes of permies

We are all shouldering a £50BN bailout as it is, what problem is a couple more on top?

[TimberWolf]

Taken from the taxes of permies

We are all shouldering a £50BN bailout as it is, what problem is a couple more on top?

Is it all a posh way of printing more money?