Savers to lose money in EU bailout

[ntb]

The public are guilty of reckless borrowing not reckless saving.

Really?

Do you know about the safety of your bank,

Yes. Multiple banks are advisable btw, plus diversification into other assets.

Only the US banks have done any meaningful amount of de-leveraging. On aggregate the entire banking system is still technically insolvent if their assets are marked to market rather than the fantasy valuations on the books. The bailouts and proposed theft in Cyprus (as with all the others) is to protect the banking system from the knock on effects if Cyprus blows.

The reason they are picking on savers rather than bond holders is damage limitation. If the bond holders get spooked it's basically game over.

 

[JohnD]

The bailouts and proposed theft in Cyprus

Tell us about this proposed theft you mention

Who do you allege is stealing? It certainly isn't the EU because they are offering to put money in, not to take it out.

If you have money in a bank that goes bust, you lose some or all of your money, except in so far as a compensation scheme is willing and able to bail you out.

In the UK, the compensation scheme guarantees up to £100,000 per depositor per bank. When the Icelandic banks went bust, and the Iceland government was not willing and able to compensate, the UK government stepped in to help UK personal depositors. The Icelanders got. away with it.

The UK government propped up Northern Rock and RBoS so the taxpayer paid. Iceland and Cyprus are not capable of doing the same.

 

[ellal]

When the Icelandic banks went bust, and the Iceland government was not willing and able to compensate, the UK government stepped in to help UK personal depositors. The Icelanders got. away with it.

The UK government propped up Northern Rock and RBoS so the taxpayer paid. Iceland and Cyprus are not capable of doing the same.

In Iceland a decision was taken (via TWO democratic votes) that the banks were liable for the icesave debt, not Icelandic citizens...

And guess what... To date, the IMF have been paid off early, the loans from other nations have been returned, and 95% of the Icesave debt has been found from the now defunct BANK'S ASSETS!

They did not 'get away with it' since they will pay up in full...

Their approach is one that the IMF hates - because it means that in a few years they will be clear of the IMF's clutch and back in the black!

Cyprus could do the same, but the EU/IMF have their eyes on the fact that they would be stripped of their power if a 'big country' went down the same route as Iceland!

So before you go any further, I suggest you check the facts...

 

[JohnD]

When the Icelandic banks went bust, and the Iceland government was not willing and able to compensate, the UK government stepped in to help UK personal depositors. The Icelanders got away with it.

Do you deny the truth of what I said? Maybe you should check the facts. Maybe I should add the words "so far"

 

[AronSearle]

When the Icelandic banks went bust, and the Iceland government was not willing and able to compensate

They still gave depositors insurance to domestic residents, it was only dirty foreigners that got screwed over.

 

[ellal]

JD and A*rs*e...

You really are a couple of numbnuts..

Linky Linky...

As I said, find out the facts rather that spouting more cr*p....

 

[ellal]

Oh look...

linky for numbnuts

 

[AronSearle]

Ellal, it's funny watching you try so hard to bash me all the time only to trip up on your own laces.

They did give depositors insurance to domestic residents, and foreigners did get screwed over (your own link proving it).

 

[ellal]

You really are thicker than I thought A*rs*e...

They had NO obligation to pay 'foreigners', and yet are doing just that (IN FULL!) despite the fact that they have no legal liability as that link shows...

 

[JohnD]

You really, really don't want to admit the truth, do you?

When the Icelandic banks went bust, and the Iceland government was not willing and able to compensate, the UK government stepped in to help UK personal depositors. The Icelanders got. away with it.

you don't deny that the Icelandic banks went bust

you don't deny that the Iceland government was not willing and able to compensate

you don't deny that the UK government stepped in to help UK personal depositors.

you don't deny that the Icelanders got away with it.


Are you claiming that the Icelandic banks didn't go bust?
Are you claiming that the Icelandic goverment compensated UK depositors?
Are you claiming that the UK government didn't step in to help UK personal depositors?
Aree you claiming that the Icelandic banks have repaid the UK government for the compensation made to UK personal depositors?

No, because that would all be untrue.

So have you got any truthful grounds for denying that
When the Icelandic banks went bust, and the Iceland government was not willing and able to compensate, the UK government stepped in to help UK personal depositors. The Icelanders got. away with it.

No.

 

[ellal]

You really, really don't want to admit the truth, do you?

When the Icelandic banks went bust, and the Iceland government was not willing and able to compensate, the UK government stepped in to help UK personal depositors. The Icelanders got. away with it.

you don't deny that the Icelandic banks went bust The Icelandic Banks went bust

you don't deny that the Iceland government was not willing and able to compensate They weren't liable, but promised the BANKS would pay it back out of their assets

you don't deny that the UK government stepped in to help UK personal depositors.They paid up because of their obligations and political expediancy

you don't deny that the Icelanders got away with it.They got away with nothing


Are you claiming that the Icelandic banks didn't go bust? No
Are you claiming that the Icelandic goverment compensated UK depositors? The banks assets are paying back UK depositers - by approx 95% so far
Are you claiming that the UK government didn't step in to help UK personal depositors?In the interim
Aree you claiming that the Icelandic banks have repaid the UK government for the compensation made to UK personal depositors?By approx 95% so far

No, because that would all be untrue. All the above corrections are true

So have you got any truthful grounds for denying that Of Course
When the Icelandic banks went bust, and the Iceland government was not willing and able to compensate, the UK government stepped in to help UK personal depositors. The Icelanders got. away with it.

No.

Guess what...

Iceland decided its citizens weren't responsible for the debt run up by private banks...

And guess what....assets have been found from the remnants of those banks that are paying back those debts...

You of course believe that banks can run up the debts and ordinary people pay the price...?

Get to know the facts numpty!

So have you got any truthful grounds for denying that

Linky Linky

However, the controversy appears to have been unnecessary, since administrators now believe that the value of the collapsed bank's assets should be enough to compensate priority creditors in full.

In fact, the bank has more than double the assets needed to compensate foreign depositors from Britain and the Netherlands, according to the latest report from the bank's resolution committee. Its new calculations are based on the fact that the liquidation of assets is raising more than it had predicted.

"These simple facts should change completely our understanding of the old Icesave dispute. There is nothing to dispute any longer."

pmsl laughing at yet another of your ignorant posts!

 

[AronSearle]

You really are thicker than I thought A*rs*e...

They had NO obligation to pay 'foreigners', and yet are doing just that (IN FULL!) despite the fact that they have no legal liability as that link shows...

Hehe, ellel, watch the blood pressure!

Why do you post a link showing we are screwed over for the interest, and then argue we haven't been screwed.

Why do you also post a link from last year about iceland paying money back to the IMF, and not say this link....

http://www.cityam.com/article/iceland-let-2bn-debt-uk

From this year

ICELAND’S government will not have to pay back the UK for bailing out depositors who lost money in the country’s banks in 2008, a top court ruled yesterday.

The move leaves the UK £2bn out of pocket, and the Treasury is likely to have to wait for years to get the money back as the failed banks’ estates are unwound.

HAW HAW HAW

Watch out ellal, your shoelaces are untied, don't trip over them again!

 

[JohnD]

you don't deny that the Iceland government was not willing and able to compensate They weren't liable the day before the bank declared bankruptcy, the Icelandic government passed a law saying they wouldn't compensate foreign depositors. They were not willing and able, as I said.
you don't deny that the UK government stepped in to help UK personal depositors.They paid up because of their obligations and political expediancy No, they paid up to protect UK personal depositors because the Icelanding government was not willing and able to do it (like I said).

you don't deny that the Icelanders got away with it.They got away with nothing The Icelanders didn't compensate foreign depositors, and still haven't. One day they may pay the UK government a small proportion of what the UK government paid to UK personal depositors.

If you'd lost your life savings, you'd be sad if you had to wait for years and years to be repaid (Iceland is not going to pay any interest)

 

[ntb]

The bailouts and proposed theft in Cyprus

Tell us about this proposed theft you mention

Who do you allege is stealing? It certainly isn't the EU because they are offering to put money in, not to take it out.

If you have money in a bank that goes bust, you lose some or all of your money, except in so far as a compensation scheme is willing and able to bail you out.

In the UK, the compensation scheme guarantees up to £100,000 per depositor per bank. When the Icelandic banks went bust, and the Iceland government was not willing and able to compensate, the UK government stepped in to help UK personal depositors. The Icelanders got. away with it.

The UK government propped up Northern Rock and RBoS so the taxpayer paid. Iceland and Cyprus are not capable of doing the same.

You don't appear to have grasped the capital structure of a bank. In the event of insolvency, first the shareholders take the hit in terms of dilution as fresh capital is raised on the market. Second, the bondholders suffer a haircut and ultimately lose everything. Then, and only then when shareholders and bondholders are wiped out should the depositors lose any capital. Subverting this risk structure is theft.

 

[ntb]

Btw, the money coming from the ECB to bail out the Cypriot banks is being created out of thin air by the ECB thus adding to the monetary base of Euros. This dilutes the value of every other Euro in existence and is therefore theft from Euro region savers.