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WG774
5th Feb 2009, 13:08
Hi,

Can anyone tell me if the following claim is true:

It fails to mention here the FSCS equivalent in Ireland in this article. Even if the Irish Gvmt failed to Guarantee 100% of all deposits there is still an absolute insurance of 100k or 80k. The UK is in far more trouble than Ireland as far as recession goes. The Irish Gvmt saved during the boom.

Taken from this link: Get-out clause for Anglo Irish customers (http://www.timesonline.co.uk/tol/money/savings/article5626471.ece)

If anyone can tell me the name of this regulatory body I'd be highly obliged. I'm not asking if Ireland is in a better state to weather the climate than the mainland UK, only if this claim about insurance is true.

Many thanks in advance.

The Blimp
5th Feb 2009, 14:02
Not 100% sure of what details you're looking for, but that guarantee was a state one. The Irish government itself is protecting the deposits. I don't know who will administer this on a day-to-day basis, but it's possible the Irish Financial Regulator

Irish Financial Services Regulatory Authority (http://www.ifsra.ie)

Hyph
5th Feb 2009, 16:49
AFAIK, the 100% bank deposit is guaranteed by the Irish Government rather than a scheme such as the FSCS.

The financial regulator in Ireland is the Irish Financial Services Regulatory Authority (http://www.financialregulator.ie/) and does similar work to the FSA in the UK. They have some information which may be of interest (http://www.itsyourmoney.ie/index.jsp?1nID=93&2nID=100&3nID=153&nID=569&aID=657) to you.

WG774
5th Feb 2009, 17:35
Thanks. I've spent the afternoon looking for info. From what I can make out, Anglo-Irish savers are covered by 3 potential mechanisms:

The Irish Govt. Guarantee

If the above goes belly up, there's the ECB as Ireland is in the Eurozone

The Irish equivalent to the FSCS alluded to in the initial link I posted (not sure about this if AI is nationalised, which it is).

On the downside, Ireland is facing the possibility that its Standard + Poors and Moody's credit rating is downgraded...

Business Feed Article | Business | guardian.co.uk (http://www.guardian.co.uk/business/feedarticle/8335229)

This is the link that gave me the jitters: FT.com / Personal Finance / Banking - Irish banks give savers jitters (http://www.ft.com/cms/s/2/dcd6ef52-eeff-11dd-bbb5-0000779fd2ac.html)

corsair
5th Feb 2009, 18:54
Since the Guardian article, the Irish government has acted and introduced a pension levy on the public service, among other things all designed to save 2bilion. This was designed to help shore up the AAA rating. Needless to say the public service employees are crying about this as they seem to think they should be immune to the recession in their safe jobs for life.

That's only the start though. However the government have shown willingness to make a very unpopular decision which will go down well with the powers that be.

Ultimately though, it is widely suggested that there soon will be only two Irish owned banks which probably means Anglo Irish will be swallowed up by Bank of Ireland or AIB. Of the two AIB is apparently in a much stronger position. Neither of the big two will be allowed to fail, that's for sure.

So I would say the money is as safe there as anywhere. Ireland is not Iceland. I speak as someone who has as much to lose as you.

WG774
5th Feb 2009, 21:02
Good post, Corsair - thanks.

Whilst searching through Google, I came across a couple of articles that almost contradicted themselves. One said that Standard + Poor's, in conjunction with Moody's, had issued a statement saying that the 2-Billion Euro saving was no guarantee the Irish credit rating wouldn't be downgraded. The other said that one of the big wigs at S+P had made a statement applauding the cull on pension commitments.

BTW - I should say this is worse than my finances at risk. On my advice, my mother put her nest egg of 95K into an AI deposit bond. I can risk my own dosh, but the thought of giving my mother bad advice mortifies me. It was the FT article I read earlier today that got me worried.

corsair
5th Feb 2009, 21:41
It could have been worse, our money went into one of those funds based on stocks and property. You can imagine what it's worth now. We're safe enough as most of it is guaranteed unless we cash in early. Fingers crossed:hmm: