View Full Version : Kaupthing Edge being investigated?
Hey folks,
My dad mentioned something to me earlier. He thought he had heard Kaupthing Edge and other Iceland banks were being investigated over their online savings accounts.
Has anyone heard anything about this? Can't seem to find anything on BBC News - just thinking about the money I have saved with them and how safe it is!
Thanks!
walrus2106
04-10-2008, 11:49
Irish banks are being investigated after stating that they will offer 100% protection to savings, apparently it goes against EU policy
NicolaUK
04-10-2008, 11:57
No doubt if there is problems with Icelandic banks, Norway, Sweden and Finland will help them out. If savings were lost in any European there would be a run on all banks and that would be unthinkable.
farmroad38
04-10-2008, 13:18
Kaupthing online savings accounts are fully covered by the Financial Services Compensation Scheme, and as such you are covered for any funds up to £35,000 (£50,000 from this Tuesday). Anyway, as Nicola said, it's unlikely that Kaupthing would be allowed to fold as the resulting financial crisis would have catastrophic effects.
Edit: Note, Kaupthing Isle of Man accounts aren't covered in the same way, but I don't have one of those so I'm not sure what their equivalent is.
Actually Kaupthing are double covered. Firstly the Icelandic equivalent will cover you, then any difference between their level of cover and the UK £35k (or £50k) will come under the UK system.
the only real danger is if they were to go bankrupt and you needed money fast.
Isle of Man accounts are protected only for 75% of the total, up to a maximum of £15,000. And even then they pay you out over a series of YEARS. It might be worth checking where some of your accounts are held, as this is not widely publicised.
There was something on the news about Iceland and its banks having more debt than national income or something. Perhaps thats what he heard. I can't remember the details because it was early.
Think this was it -
http://news.bbc.co.uk/1/hi/business/7651313.stm
NicolaUK
04-10-2008, 15:54
Don't panic:
http://news.bbc.co.uk/1/hi/programmes/moneybox/7652519.stm
Cheers peoples!
Can't say I was too worried. Also after reading on the site you are FSA covered. All well and good!
Kauthphing shares have just been suspended (in Sweden).
The Icelandic governement now has no intention of honouring it's obligations with regards to savers overseas. As it stands they would be liable for the first £16k with the UK government liable for the rest up to £50k. Unfortunately that *could* mean you lose all of the first £16k, unless the Badger steps in here as he has with icesave.
Contrary to my own advice yesterday, I've just pulled my money out.
They are fully covered by the UK scheme and not the 'passport' Icelandic con.
farmroad38
08-10-2008, 09:24
Kauthphing shares have just been suspended (in Sweden).
The Icelandic governement now has no intention of honouring it's obligations with regards to savers overseas. As it stands they would be liable for the first £16k with the UK government liable for the rest up to £50k. Unfortunately that *could* mean you lose all of the first £16k, unless the Badger steps in here as he has with icesave.
Contrary to my own advice yesterday, I've just pulled my money out.
That's worrying, but not necessarily a problem - I believe RBS shares were suspended at one point yesterday. Worth keeping an eye on though.
However, as chris has just said, and I said in this thread earlier, Kaupthing are fully covered by the UK compensation scheme, so you shouldn't lose anything up to £50k.
http://www.thedvdforums.com/forums/showthread.php?t=518305
Well, as much as I wouldn't panic if using KE as a regular savings account, I've pulled mine out as it's my stoozing pot for credit cards so I need regular access to it to make withdrawals. If they went the same way as Icesave - stopping withdrawals - I'd be faily screwed, even if I knew the balance was protected.
...and I said in this thread earlier, Kaupthing are fully covered by the UK compensation scheme, so you shouldn't lose anything up to £50k.
That's what I thought. Apparently not. I read somewhere this morning, I think it was Peston's blog on the BBC that the UK covers 16-50k. If they choose not to pay the first 16 that does not affect the UK's liability for 16-50. i.e. if you have 17k, you could only get 1k back.
When I find the article I'll post a link.
farmroad38
08-10-2008, 09:38
That's what I thought. Apparently not. I read somewhere this morning, I think it was Peston's blog on the BBC that the UK covers 16-50k. If they choose not to pay the first 16 that does not affect the UK's liability for 16-50. i.e. if you have 17k, you could only get 1k back.
When I find the article I'll post a link.
No, Kaupthing ARE signed up to the UK Financial Services Compensation Scheme, and as such savings are fully covered. Icesave were signed up to the Passport scheme, where the first 20K euros were covered by the Icelandic FSA (who have now reneged on that deal and said they have no intention of paying out).
No, Kaupthing ARE signed up to the UK Financial Services Compensation Scheme, and as such savings are fully covered. Icesave were signed up to the Passport scheme, where the first 20K euros were covered by the Icelandic FSA (who have now reneged on that deal and said they have no intention of paying out).
I stand corrected. Quote from http://news.bbc.co.uk/1/hi/business/7657630.stm
ANDREW HAGGER: The Kaupthing website is currently open for business as usual. Kaupthing Edge is a UK bank and regulated by the Financial Services Authority (FSA). This means that if the bank did fail, the first £50,000 would be covered by the UK compensation scheme rather than the split Icelandic/UK arrangement with Icesave.
ING have just taken over control of all KE accounts. Not sure whether they just use the passport scheme rather than the FSCS.
Cannot login on KE anymore :( Got 13k floating around in a BACS and 5k stuck in term deposits that they keep forgetting to transfer out to me :(
farmroad38
08-10-2008, 09:43
ING have just taken over control of all KE accounts. Not sure whether they just use the passport scheme rather than the FSCS
Where did you get that from? I read earlier (on the FT Alphaville site) that it was rumoured ING were buying the Icesave deposit book.
Cannot login on KE anymore :...(
I can still log in. Try again, the server may just be busy.
farmroad38
08-10-2008, 09:45
I've just logged into Kaupthing with no problems at all. It's no wonder the markets are in turmoil with everyone panicking so much!
I can type all my stuff in, but when I click through the final bit it goes back to the first page
EDIT: works now
farmroad38
08-10-2008, 09:50
Was on Sky
I suspect they may be talking ********, as no one else is reporting it.
http://www.teletext.co.uk/news/national/c0a2f2479ab752ad276c2f08bb5b1669/ING+acquires+UK+deposits.aspx
farmroad38
08-10-2008, 10:01
http://www.teletext.co.uk/news/national/c0a2f2479ab752ad276c2f08bb5b1669/ING+acquires+UK+deposits.aspx
Fair enough, and it's been mentioned on the FT site too. That just doesn't make any sense though does it - deposits are the valuable part of the business, why on earth would you dump them? :?:
Bit of a bugger - ING are *****...
I know, been trying to close my savings account with them for a while :(
I hope KE become more stable (less likely to fold and end up claiming through FSCS) as their customer service is amazing.
farmroad38
08-10-2008, 10:08
It appears that ING aren't signed up to the FSCS either, as the Ing Direct website wurbles on about the Dutch compensation scheme. If I signed up to KE safe in the knowledge that my savings would be safe, seems a bit dodgy that they could then pass my dosh over to somewhere less secure.
Anyway, until either KE or ING make a statement, I guess it's just rumour.
I just tried to call ING to finally close my account and get the £4 transferred out, waiting time is 20mins, I gave up
I pulled all my money out of KE last night just to be safe as I will need access to is in a month or so. And now that my money is frozen in Icesave my house purchase is on hold! Can't say it's a good day.
farmroad38
08-10-2008, 14:56
According to FT Alphaville (http://ftalphaville.ft.com/marketslive/), the UK subsidiary of Kaupthing have been put into receivership by the FSA, which is why the deposits have been sold off to ING.
Looks like depositors will be okay, but Kaupthing also had their fingers in various other pies - they were handling deals in Sainsburys which have now collapsed, and had also loaned JJB Sports £20m - JJB shares have fallen dramatically and it looks like they could be in serious trouble.
Oops.
Uncle Nick
08-10-2008, 15:17
Hmm, so there's only £1 that's real - it's just been loaned out umpteen billion times?
STOP PRESS! I've checked my pockets and I have the real pound! The economy is safe :)
Just trying a little humour to lighten the ****** day some people are having
That pound needs to be spent and passed around to everyone so in fact by holding onto the pound all this is actually your fault. Spend it now or we're all doooommed!!!
:lol: Nice replies :thumbs:
At the end of it all money is just a number on a screen or a bit of paper.
megatron
08-10-2008, 17:17
Can someone just confirm that my 8k will be safe in my KE savings account. I don't want to withdraw it, if it's definitely covered?
I instructed KE to transfer out what little savings I had there yesterday afternoon. I will just have a to wait a few days to see if it happened.. or if it is all frozen.
Fun times.
farmroad38
09-10-2008, 10:55
The Icelandic government have now taken control of Kaupthing:
http://newsvote.bbc.co.uk/1/hi/business/7660511.stm
The Kaupthing Edge website has now been updated to say they have been taken over by ING. Bit of a git - I've still got 6 months of my fixed term deposit to run, so I hope they don't muck me about.
According to the Motley Fool, all those that attempted to withdraw money from Kaupthing in the last few days should get their money back. It may appear in the destination account or maybe back in your Kaupthing account.
Unfortunatately I can't logon to Kaupthing without agreeing to a 21 page agreement I don't currently have time to read. For some reason I don't trust them enough to just agree without reading.
Yes, payments supposedly starting to come thru today. Once the backlog is cleared I will transfer out the rest that was stuck in term deposits.
lol I now feel sort of semi justified in withdrawing all my cash from them a few days ago "just in case"....
Anyone know of a decentish high interest account with a fairly safe bank where I can feel a bit secure?
Egg is 6.3%, Natwest is 6.5% (altho a bit of a delayed bonus is included in that). Tesco (http://www.thedvdforums.com/affiliatelink.php?localaffiliateid=79) have 6.5%
Egg were offering a Savings account at 6.3% fixed for 12 months (which, given the cut in interest rates, is particularly good), although interest paid annually AFAIK.
I'm not sure where to put mine tbh - got a better rate with ING although they have the Dutch compensation scheme rather than the UK one.
neilalford
10-10-2008, 09:46
Halifax (if you consider them secure) are offering a 7% fixed rate account for 3 or 6 months, then lower rates for longer terms, minimum deposit £500, maximum £9,000,000!
farmroad38
10-10-2008, 10:21
...Unfortunatately I can't logon to Kaupthing without agreeing to a 21 page agreement I don't currently have time to read. For some reason I don't trust them enough to just agree without reading.
Eh? Is that the initial agreement, or something new? I haven't seen anything like that, and I've been logging onto my account every day this week.
Eh? Is that the initial agreement, or something new? I haven't seen anything like that, and I've been logging onto my account every day this week.
something new. It appeared this morning and won't allow you to see your account until you agree to it.
You could of course use the phone instead.. ..oh no, it's constantly engaged.
farmroad38
10-10-2008, 11:02
something new. It appeared this morning and won't allow you to see your account until you agree to it.
You could of course use the phone instead.. ..oh no, it's constantly engaged.
No, I don't get that - logged in this morning (just to check my money was still there!) and I got in as normal.
No, I don't get that - logged in this morning (just to check my money was still there!) and I got in as normal.
Wow, special conditions just for me.
Undoubteldy para 14, subsection 2, part 3 (b) says "we withold the right to take all your money off you".
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