Glimmer Of Hope For Kaupthing Savers

Savings and ISAs

Updated on 17 February 2009 | 9 Comments

Last night's edition of `Channel Four News' contained some good news for savers who have an account with Kaupthing Edge in the Isle of Man and the Channel Islands.

Last week we reported in 'Bad News For Kaupthing's Isle Of Man Customers' that, unlike in the UK, ING hadn't bought Kaupthing's Isle of Man operation. Even worse, Alistair Darling's promise that Kaupthing savers wouldn't lose out didn't apply to the Isle of Man and the Channel Islands.

As a result, Isle of Man savers could only rely on the Manx government's Depositors' Compensation Scheme which will only pay out compensation to a maximum of £50,000 per saver.

In the Channel Islands, there is no protection for UK citizens.

I received an email from one Fool who had put 90% of his life savings, which amounted to £400,000, in a Kaupthing Isle of Man account. Obviously, he was shocked by the news.

However, last night's `Channel Four News' offered a glimmer of hope. Jon Snow interviewed the Icelandic Prime Minister, Geir Harde, who said the following:

`Well, we feel that we should do our best to work together and solve this problem so nobody gets hurt. And I do think to a large extent that the deposits , the assets rather, of both Kaupthing and Landsbanki, will be sufficient to take care of these claims. If we take proper care of these assets and maintain the value, I am sure this can be worked out.'

Jon Snow asked: `So do you think they will get something back?'

Harde:  `I do think so. I think the loan that the UK government provided yesterday to Landsbanki was very helpful. It will enable that bank, Landsbanki to keep up the value of their assets.'

So it's possible that there will be enough money in the Kaupthing pot to pay out to Isle of Man and Channel Islands savers. Let's hope so..

Comments

Be the first to comment

Do you want to comment on this article? You need to be signed in for this feature

Copyright © lovemoney.com All rights reserved.

 

loveMONEY.com Financial Services Limited is authorised and regulated by the Financial Conduct Authority (FCA) with Firm Reference Number (FRN): 479153.

loveMONEY.com is a company registered in England & Wales (Company Number: 7406028) with its registered address at First Floor Ridgeland House, 15 Carfax, Horsham, West Sussex, RH12 1DY, United Kingdom. loveMONEY.com Limited operates under the trading name of loveMONEY.com Financial Services Limited. We operate as a credit broker for consumer credit and do not lend directly. Our company maintains relationships with various affiliates and lenders, which we may promote within our editorial content in emails and on featured partner pages through affiliate links. Please note, that we may receive commission payments from some of the product and service providers featured on our website. In line with Consumer Duty regulations, we assess our partners to ensure they offer fair value, are transparent, and cater to the needs of all customers, including vulnerable groups. We continuously review our practices to ensure compliance with these standards. While we make every effort to ensure the accuracy and currency of our editorial content, users should independently verify information with their chosen product or service provider. This can be done by reviewing the product landing page information and the terms and conditions associated with the product. If you are uncertain whether a product is suitable, we strongly recommend seeking advice from a regulated independent financial advisor before applying for the products.