Iceland suspends trading in financial firms

If you are worrying about your savings in Icelandic banks – Icesave (Landsbanki), Kaupthing Edge – then you will be interested in this announcement today.  Iceland has suspended share trading in financial companies.

“This decision is made in order to safeguard the equality of investors while awaiting an announcement,” the statement said.

Reuters, 6 October 2008

And Times Online reports:

All the major credit ratings agencies moved today to downgrade Iceland’s four big banks and its sovereign credit rating. Fitch cut Iceland’s long-term foreign-currency IDR rating by two notches to A-, while Standard & Poor’s cut Iceland’s long-term foreign currency sovereign credit rating to A- from A and Moody’s put its Aa1 rating on review.

Read the rest of this very good article on The Times site.

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2 responses to “Iceland suspends trading in financial firms

  1. So are we Safe to leave up to £50,000 in this bank? Will the bank collapse? If it does can we get our full amount back and how long will it take to do so?

  2. Hi Nibi

    1. Kaupthing Edge
    This bank is covered under the UK FSCS up to £35,000 until midnight tonight. After that the limit goes up to £50,000.

    2. Icesave
    I can’t offer definitive answers but I took my money out of Icesave recently because I just don’t think Iceland is in a position to guarantee my cash and Landsbanki don’t seem particularly stable. And of course Icesave use the passport system where you would have to apply to the Icelandic compensation scheme for the first £15,000 prior to getting the rest from the UK compensation scheme. Iceland is in serious economic difficulty and you have to wonder if they have the cash to give everybody their money back.

    3. How long to get your money back?
    If a bank does go down there would be a large number of customers to process but of course the claims would all be fairly simple. Nobody knows precisely how long it would take to get your money back though.

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