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Post by Mirko on Oct 7, 2008 15:17:07 GMT 1
LONDON, Oct 7 (Reuters) - Icelandic bank Landsbanki's (LAIS.IC: Quote, Profile, Research, Stock Buzz) British internet bank icesave has stopped customers withdrawing or depositing money, according to its Web site.
"We are not currently processing any deposits or any withdrawal requests through our Icesave internet accounts," icesave said on Tuesday. "We apologise for any inconvenience this may cause our customers. We hope to provide you with more information shortly."
Earlier, the Icelandic Financial Supervisory Authority said it would take control of Landsbanki, the country's second largest bank by value.
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Post by Mirko on Oct 7, 2008 15:21:02 GMT 1
According to some reports about 300,000 people in the UK saved with the Icesave Internet Bank. They will know have to seek compensation from the UK government.
I just hope that there will be no domino effect on the other banks.
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Post by mambo on Oct 7, 2008 15:58:30 GMT 1
The one reason why banks are failing at this time is that people start emptying their accounts.
As you know banks don't have a 100 % coverage of all the money on all the accounts. They use savings and other deposits as loans for other companies, mortgages etc. It does not mean the bank is not solvent, the money is just physically not present in the bank.
If everyone starts emptying their account the bank has to find liquidity somewhere and they don't have that, thus the bank collapses. This is what happened with Fortis. The bank was doing fine, but last week roughly 10 billion euro was taken out of the accounts by private people and companies.
Fortis did not have the 10 billion euro and the result was a take over by the government.
The guarantee for your savings is only necessary if the bank goes bankrupt. In Europe some governments are guaranteeing 100 %, other countries only part of the money.
If you want to be safe you would have to divide your money over several banks, because each bank has a guaranteed amount.
The reason why banks are now increasing interest rates and governments are guaranteeing the money is to stop people from emptying their accounts. The panic needs to be stopped.
If governments would instruct the press to stop creating a panic I think half the problem would be solved. When you hear the reports on CNN, CNBC etc you realize that the press likes sensation and they are blowing this thing up way too much.
If only we could calm down a bit, it would already save us.
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Post by ray51 on Oct 7, 2008 16:58:12 GMT 1
The main Problem
all those Bastards lie quite so much !
UNBELIEVABLE !!!!
I had e-mails from a few Irish banks , as recently as Friday ,
boasting how their holdings were now all UNCONDITIONALLY guaranteed by the Irish Government !
All this has since been erased from the internet , if you care to ask personally , tons of gobbledygook is available + they " dont know"
Cheerz , mates !
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Post by Mirko on Oct 7, 2008 17:39:44 GMT 1
IMO, what is also worrying that almost all bank shares collapsed today in London: RBOS even down by 40%, Barclays by 9%, only HSBC is up by 2%. Does that mean than HSBC is the safest bank?
I do not have any shares, but I bank with HSBC.
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Post by ray51 on Oct 7, 2008 17:52:14 GMT 1
The next dump of swine , to go belly-up , once they acknowknowledge the extent of China Crisis ?
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Post by Madgolfer on Oct 7, 2008 18:51:36 GMT 1
That lumpy old mattress seems quite confortable at the momment.
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Post by Sasha on Oct 7, 2008 19:57:46 GMT 1
Iceland is virtually bankrupt: population 200,000, GNP $20 billion, their debts much higher.
And Europe does not want to help: Iceland is now seeking some $6 billion from Russia.
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Post by Ribaric on Oct 7, 2008 21:04:49 GMT 1
Does that mean they've just nationalised West Ham United?
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Post by choink on Oct 7, 2008 21:51:00 GMT 1
no.
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Post by Mirko on Oct 8, 2008 10:08:31 GMT 1
Incredible!
Iceland is refusing to honour a commitment to compensate British savers with money in a frozen online bank, but Britain will help them due to exceptional circumstances, the UK finance minister said today.
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Post by Mirko on Oct 8, 2008 10:18:49 GMT 1
Also very worrying:
"Croatian gross foreign debt went up 2.2 billion euros in the first seven months of 2008, reaching 35.4 billion euros in the end of July, latest figures of the Croatian National Bank (HNB).
Foreign debt increase in the first seven months of this year is exclusively a consequence of the continuation of intense indebtedness of other home sectors, i.e. companies abroad, whose total debts were increased by 2.18 billion euros.
At the same time, the sector of business banks records a decrease of indebtedness by 544 million euros and the state by 86 million euros".
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Post by Madgolfer on Oct 8, 2008 10:20:46 GMT 1
As Mambo said, everyone just needs to calm down, we would then be on the right path to sorting the problem out.
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Post by choink on Oct 8, 2008 12:10:02 GMT 1
foreign debt 35 billion euros !?
minister suker really is a suker. corruption to blame. the bottom will fall out from under croatia and the EU will catch it. I presume that is the plan.
our politicians are scum. sorry. unfortunately. it is horrifying.
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Post by Sasha on Oct 8, 2008 17:50:02 GMT 1
Apparently Iceland debt stands at $115 billion dollars, no way to repay that. Terrible!
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