Finnish guarantee for Kaupthing depositors

  • Anonymous
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Posted: Wed, 21/01/2009 - 12:29

I notice that the EU has approved a guarantee for Finland to pay Kaupthing depositors, so there's yet another jurisdiction in which the authorities are doing the only fair thing possible - guaranteeing bank deposits.

From : www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSBRU00...

"BRUSSELS, Jan 21 (Reuters) - Finnish authorities on Wednesday won approval from the European Commission for state guarantees to benefit depositors in the Finnish branch of insolvent Kaupthing Bank (KAUP.IC), the EU executive said."

The article then goes on...

"The state guarantee combined with the Finnish banks' initiative will help to maintain depositors´ confidence and stability in the Finnish banking sector," EU Competition Commissioner Neelie Kroes said in a statement."

But where is the Isle of Man in comparison? I feel that in contrast to all these guarantees being made by other governments, I would have been safer to have put my money in a back-street bank of some third world country rather the Isle of Man. I honestly think their banking repuation is finished.

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Finland Rescue

  • Anonymous
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  • Wed, 21/01/2009 - 15:31

Sami - is it possible to copy the article on Finland rescuing Kaupthing and e-mail to Alan Bell IOM or all of the iom government. I would love to send it to them but I don't know how to do it.


Yes, send this to Alan Bell - Good idea Merlin

  • Anonymous
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  • Thu, 22/01/2009 - 10:57

Yes, good idea Merlin. I suggest we write to him in the good old way, rather than sending a lot of e-mails that just have the DEL button pressed on them.

Here is the text below Merlin, if you wish to select it and COPY it.


BRUSSELS, Jan 21 (Reuters) - Finnish authorities on Wednesday won approval from the European Commission for state guarantees to benefit depositors in the Finnish branch of insolvent Kaupthing Bank (KAUP.IC), the EU executive said.

The Commission, the competition watchdog of the 27-nation European Union, said the measure guarantees banks that ensured full compensation of Kaupthing's Finnish depositors against legal risks.

"The state guarantee combined with the Finnish banks' initiative will help to maintain depositors´ confidence and stability in the Finnish banking sector," EU Competition Commissioner Neelie Kroes said in a statement.

The failure of the Icelandic Kaupthing Bank also triggered the failure of its Finnish branch. As a result, the branch's depositors were unable to make immediate withdrawals or might have lost part of their deposits, the Commission said.

Fearing a broader loss of confidence among Finnish depositors, banks including Nordea Bank (NDA.ST), OP-Pohjola and Sampo (SAMAS.HE) offered to compensate depositors in full.

"While this guarantee includes state resources, the measure clearly helps to implement a private arrangement to restore the confidence in the Finnish banking sector and more generally in the Finnish economy," the Commission said. (Reporting by Bate Felix; editing by Mark John)

From: http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/id...


Thanks Sami

  • Anonymous
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  • Fri, 23/01/2009 - 11:29

I have just copied the Reuters Report regarding Finland compensating their Kaupthing depositors and mailed it to Allen Bell. Lets hope he takes the hint!


Kaupthing Finland-Depositirs Rescued

  • Anonymous
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  • Wed, 21/01/2009 - 13:52

This is the second rescue for a Kaupthing bank in less than a week. Kaupthing Luxembourg bought by Credit Agricole and Keybank on Friday. Anglo Irish nationalised last Friday. Today Kaupthing Finland Bank depositors are guaranteed. It's time for the IoMG to read the writing on the wall.


The difference between these

  • Anonymous
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  • Wed, 21/01/2009 - 14:08

The difference between these banks and KSF IOM is that they are not being held hostage as a result of the funds trapped in the UK.


No, the difference is that

  • Anonymous
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  • Fri, 23/01/2009 - 10:35

No, the difference is that they are EU banks and the IoM is not in the EU so it doesn't have to follow its banking laws.

But you knew that.


Not in EU, correct, but they followed the EU savings directive

  • Anonymous
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  • Fri, 23/01/2009 - 12:52

Correct, they are not in the EU but they followed the EU savings tax directive when it suited them. They had to save-face otherwise they'd have been called a "tax haven".

Hmm, now why does that sound familar?


re - The difference between these

  • Anonymous
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  • Wed, 21/01/2009 - 14:13

That's true - but that exposure could be reduced by as much as 25% at a stroke.. see this new topic.

http://chat.ksfiomdepositors.org/forum-topic/possible-%C2%A3100m-flight-...


Finland Guarantees Kaupthing deposits!

  • Anonymous
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  • Wed, 21/01/2009 - 13:20

Please read the above new posting from Sami - more evidence of Governments understanding their Banking reputational issues are critical and stepping up to solve the issue. Keep pushing.