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Update Icesave Internet bank stops withdrawals, Iceland nationalizes Landsbanki, country fights bancruptcy
by SOLARLIFE | October 7, 2008 at 06:48 am | 899 views | 4 comments | 4 recommendations
Landsbanki CEO Sigurjon Arnason confirmed nationalization
- Update Icesave Internet bank stops withdrawals, financial services compensation schemes for closed @accounts apply at: www.fscs.org.uk
- view sidebar Internet Icesave closed: http://www.icesave.co.uk
- "We are not currently processing any deposits or any withdrawal requests through our Icesave internet accounts. We apologise for any inconvenience this may cause our customers. We hope to provide you with more information shortly."
The Icelandic internet bank Icesave is expected to go into insolvency.
UK customers have around £4bn invested in the company. They have been warned they will probably have to claim their savings back through compensation schemes. Some of the bank's customers have been telling BBC News about their fears.
- Iceland Kroner currency has fallen today to the Euro 31 %
- UK worries about savings in Internet bank Icesave, 300 000 Brits concerned
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The UK's FSCS confirmed today that it is only responsible for "top-up" payouts to customers of Icesave. It said this afternoon it was only gearing up to cover amounts over and above the €20,000 (£16,264) protected by the Icelandic government's deposit protection scheme.- This means that if the Icelandic government was unable to meet its obligations to UK savers they would only get back any holdings between €20,000 and £50,000; those savers with less than €20,000 would receive nothing.
- Kepler Equities, the investment arm of Landsbanki to restructure
- Russia gains influence, will bailout Iceland with $5bn loan
Iceland moves to contain economic turmoilIceland nationalizes one of its largest banks, Landsbanki, as the country feels the worsening effects of the global financial crisis, while shares in UK banks fall sharply and European Union ministers scramble to shore up economic confidence and prevent a market meltdown
Landsbanki CEO Sigurjon Arnason holds a Engineering degree and MB of US university, he seems the perfect match for investment banking; so what went wrong? ..Story update
"We are not currently processing any deposits or any withdrawal requests through our Icesave internet accounts. We apologise for any inconvenience this may cause our customers. We hope to provide you with more information shortly."
Internet banking customers scary nightmare
"I have logged on to the website , no withdrawals possible"
"I am not a banker or high earner and I worked hard for my savings. I have around £100,000 in bonds with Icesave that according to my terms and conditions I can't withdraw for another two years." Emma Durnford says she is worried about what will happen to her savings if the bank goes into insolvency because the UK government is only guaranteeing savings up to £50,000."I have logged on to the website and I can view my account and the transactions but I can't move or withdraw any money...I did a lot of research before choosing Icesave and in September 2007 their credit rating was high and they looked very secure."
Mrs Durnford said the obvious thing for everyone now was to make sure they didn't have more than £50,000 in any account.
Previous Development:
Russia helps, Iceland suspended trading, first country to go bankruptcy ? UK in danger, why?
October 7, 2008 at 06:48 am by SOLARLIFE, 899 views, 4 comments
Most RecentMost Recommended Comments (4)
at 11:13 on October 7th, 2008
SOLARLIFE, I like this story. It's good stuff.
at 11:19 on October 7th, 2008
moonwolf thanks for Flag "Icesave Internet bank stops withdrawals, Iceland nationalizes Landsbanki"
at 11:14 on October 7th, 2008
Not long ago, just a few weeks, Iceland was going to become a banking powerhouse.
at 11:31 on October 7th, 2008
Fairbanks you are right, Iceland was a "financial power house", many workers went to Iceland for high paid jobs in home construction. I remember 2007 Landsbanki came to the French riviera for investment. I met Mr.Arnason, not really knowing what power iceland has. The failure was to focus only on equity (money you borrow) investment speculation. No real production, bankers lived in the 27th floor, hated production as unnecessary risk. We should however remember, Iceland the first Hydrogen energy country on the planet. So how to give a survival chance ?