Thursday, 9 October 2008

UK GOVT STEPS IN AND SAVES THE ARSES OF ICESAVE DEPOSITORS

The Sweeper is keeping an eye on this fascinating yarn from the Guardian.

Icesave: Savers' money has been guaranteed by the UK government.

Savers with the internet bank Icesave will not lose a penny of their money even if it does fall into insolvency, the government said today."The government will guarantee that no retail depositor will lose money as a result of Icesave's collapse," a Treasury spokesman said. "Their money is safe and secure."The spokesman confirmed that the guarantee extended beyond the UK's Financial Services Compensation Scheme (FSCS), which protects up to £50,000 of savers' cash.An estimated 15,000 of Icesave's 300,000 savers have more than that sum invested, and some feared they could lose many thousands of pounds when the bank halted withdrawals yesterday after its parent company Landsbanki was nationalised by the Icelandic government.The chancellor will make a statement confirming the guarantee later today.Although Icesave savers will have 100% of their deposits covered, the Treasury said there were no plans to formally remove the limit on compensation from its current level of £50,000.Earlier, the prime minister, Gordon Brown, said the government would be taking legal action against the Icelandic government to recover any money lost by UK savers.

1 comment:

Pique Oil said...

Icesavers are saved but here in Godzone Bluechip investors are out in the cold. It fascinates me as to how the criteria for who is to be protected are determined.
It appears to be on an ad hoc basis and perhaps it is related to the phase of the moon. Is annette King involved?