European Rescue Plan

  • chb
  • 10/10/08 15/10/09
  • a depositor
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Posted: Sun, 12/10/2008 - 21:35

Saw on the BBC website tonight that the European leaders have today declared that they will not allow any big financial institution to fail. No specific mention of Iceland but can we dream that this falls into the category of 'big institutions'?

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European Rescue Plan

  • chb
  • 10/10/08 15/10/09
  • a depositor
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  • Sun, 12/10/2008 - 21:58

Understand that some Eur 300 million is or was held in Iceland by one of the big Austrian banks and we know all about the GBP 1 bn invested by UK Local Authorities, Police Authorities, Charities etc so there obviously is a massive degree of inter dependence. I assume that these governments will be trying to stamp out each fire as it occurs. No expert. Just hoping.

Btw - Saw a report on Friday (official Russian News Agency Novosti I think) saying that the Russian Govt had actually loaned Iceland 4 bn euros. Elsewhere, reports indicate that it's not agreed, that discussions are ongoing and will not be finalised before Tuesday. Would the 4 bn euros allow KSF or the Icelandic Govt to give us back our money?


EU Rescue Plan and IMF Loan

  • Emabroad
  • 10/10/08 30/08/09
  • a depositor
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  • Sun, 12/10/2008 - 23:35

Iceland is not in the EU - nor is the IOM, so I draw little comfort from that meeting. However there seems to be one ray of light - see:
'Iceland preparing to take IMF loan in echo of 1976 Britain' By Edmund Conway, in Washington
Last Updated: 8:40PM BST 12 Oct 2008 [Daily Telegraph online edition. ]

http://www.telegraph.co.uk/finance/businesslatestnews/3185203/Iceland-pr...

it seems that Iceland has reversed its previous attitude to borrowing from the IMF and funds have been made available and are "poised to help “a couple” of economies struggling as capital is pulled out of their borders". Let's hope one is Iceland and that they are now 'poised' to do the right thing by ALL its banks' investors. Fingers crossed . . . .


Eur rescue plan Kaupthing guarantee will it work?

  • 1log
  • 10/10/08 31/05/09
  • unspecified
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  • Sun, 12/10/2008 - 21:46

Although IOM is not a part of the EU, if the parent bank is funded and restored, don't we stand a better chance of invoking their 100% guarantee on all deposits in the event of the subsidiary failure. Also I think that if any one can get their hands on the actual wording of the Kaupthing guarantee document lodged with the FSC, and maybe someone with a legal mind read through it very very very carefully, this might be a straw worth clutching to.


I have to agree 1log. I hope

  • IanAbroad
  • 11/10/08 13/08/09
  • a depositor
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  • Sun, 12/10/2008 - 22:08

I have to agree 1log.
I hope politics will take a higher stand than the law though over the next few days, as any legal process takes a very long time and costs a lot of money.
Politically it is bad, very bad, to let a bank go.
If they start making exceptions, then people will say that the guarantee is a waste of time, and it will damage them more.

It would be great for all (any) political parties to say "We've saved Iceland, no savers will lose a penny"
That, I hope, is the end game. I just hope that Kaupthing IoM is not just seen as collateral damage.


Only problem there is the IOM

  • Monkeyface3604
  • 10/10/08 31/05/09
  • unspecified
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  • Sun, 12/10/2008 - 21:38

Only problem there is the IOM is not part of the EU :(


Iceland

  • bushmen
  • 10/10/08 31/05/09
  • unspecified
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  • Sun, 12/10/2008 - 21:42

My exact same thoughts.. And neither is Iceland part of it.