Go Back   English Forum Switzerland > Living in Switzerland > Swiss politics/news  
Reply
 
Thread Tools Display Modes
  #41  
Old 08.10.2008, 21:19
FrederikG's Avatar
Newbie 1st class
 
Join Date: Feb 2008
Location: zürich
Posts: 29
Groaned at 0 Times in 0 Posts
Thanked 5 Times in 3 Posts
FrederikG has no particular reputation at present
Re: New Online Bank .... more %

Well looking at the Icelandic economy and the general global rate cut today. One thing with Kaupting really scares me a bit.

How do you hedge your 5% accounts. Meaning to offer that kind of interest on you account in CHF that means that they need to finance the money from somewhere else than the money market. My best guess would be that they finance it from interest rate swaps with the ISK if that is truly the case, then my conclusion would be the same as the rest of the thread. Up to 30. K CHF seems like a good investment, but do not go above.

By the way a normal salary account on Iceland gives you typically above 15% in interest rate. And then people ask questions to how it can be that the icelandic economy is on the edge of breakdown
Reply With Quote
  #42  
Old 09.10.2008, 09:50
marton's Avatar
Forum Legend
 
Join Date: May 2008
Location: Kt. Zürich
Posts: 11,094
Groaned at 510 Times in 433 Posts
Thanked 19,984 Times in 10,538 Posts
marton has a reputation beyond reputemarton has a reputation beyond reputemarton has a reputation beyond reputemarton has a reputation beyond reputemarton has a reputation beyond reputemarton has a reputation beyond repute
Re: New Online Bank .... more %

Quote:
View Post
Well looking at the Icelandic economy and the general global rate cut today. One thing with Kaupting really scares me a bit.
According to the Swiss papers this morning Iceland just nationalised Kaupthing.

They said the accounts of Iceland based depositors are safe!!

Marton
Reply With Quote
  #43  
Old 09.10.2008, 11:44
devinder2801's Avatar
Junior Member
 
Join Date: Apr 2007
Location: Zurich
Posts: 45
Groaned at 0 Times in 0 Posts
Thanked 2 Times in 2 Posts
devinder2801 has no particular reputation at present
Re: New Online Bank .... more %

Here it is:

http://www.kaupthing.com/pages/164?p...10/1258139.xml

the deposits in Iceland are safe, but what about those in other countries?
Reply With Quote
  #44  
Old 09.10.2008, 11:50
ManBearPig's Avatar
Member
 
Join Date: Jun 2008
Location: Zürich
Posts: 141
Groaned at 0 Times in 0 Posts
Thanked 107 Times in 55 Posts
ManBearPig has made some interesting contributions
Re: New Online Bank .... more %

"Statement from Sigurdur Einarsson, Executive Chairman of Kaupthing Bank:

"When the board of directors reviewed the position of the bank at a meeting on 25 and 26 September, the bank was performing well and it appeared that the third quarter results would be good. Deposits had increased by an average of almost ISK 4 billion a day for the previous six months. The bank's liquidity position was therefore strong and there were plans to start buying back bonds issued by the bank. The liquidity position of Kaupthing Singer & Friedlander, the bank's UK subsidiary, was also good - probably the best of any bank in the United Kingdom.

Kaupthing had for a long time been preparing for a downturn in the markets, especially in Iceland since it had been clear for several years that the Icelandic krona was too strong. In order to counteract this possible downturn, Kaupthing had hedged its equity by transferring it into foreign currencies, decelerated the growth of corporate loans in Iceland and cut back its market share in that area. Kaupthing had not marketed loans in foreign currencies. Furthermore, it had increased the inflation indexed assets in its portfolio in Iceland and massively raised the proportion of deposits in its funding.

At the same time, dark clouds began to form in the international financial markets and trust between financial institutions quickly decreased. Banks became more reluctant to lend money to each other and retracted previous credit lines. On the morning of 29 September news emerged of the difficulties at Glitnir Bank and the authorities announced their plans to acquire a 75% stake in the bank. This triggered a series of events which nobody predicted or was able to control. This had an effect on the Icelandic economy and the króna went into freefall. Credit rating agencies downgraded their credit ratings for the Icelandic state and the Icelandic banks, and foreign investors unleashed a landslide in which they tried to get rid of Icelandic assets, regardless of how solid they were.

After British depositors withdrew their deposits from Icesave, Landsbanki's deposit account in the United Kingdom, the Icelandic Financial Supervisory Authority assumed control of Landsbanki. In the wake of this news, there was a significant increase in the outflow of deposits from Kaupthing Edge in the United Kingdom, despite the fundamental difference between Kaupthing Edge and Icesave that Kaupthing Edge was guaranteed by the British compensation scheme and Icesave by the Icelandic scheme.

After the British chancellor of the exchequer stated that Iceland did not intend to honour its obligations to British depositors, the Financial Services Authority in the UK transferred Kaupthing Edge from the bank's subsidiary, Kaupthing Singer & Friedlander. Kaupthing Singer & Friedlander was subsequently placed into administration and Kaupthing Bank's creditors pointed out that this situation represented an event of default according to the parent company's loan agreements and was therefore a technical default. It did not matter that the parent company had sufficient liquidity and its position was solid."

Kaupthing Bank has now requested that the Icelandic Financial Supervisory Authority, in accordance with the provisions of the new Act no. 125/2008, which was passed into law because of the unusual circumstances in the financial market, assume the power of Kaupthing Bank shareholders' meeting. Furthermore, the entire board of directors of the bank has resigned.

The Icelandic FSA has appointed a winding-up committee which now wields all the authority of the board of directors. The aim of these actions is to ensure adequate activities of the bank in Iceland and the stability of the Icelandic financial system. The bank's branches in Iceland will be open as usual, and it is hoped that the bank's clients will be inconvenienced as little as possible by these changes.

While the winding-up committee is in control of the bank, the bank may not be made subject to enforcement, preliminary seizure or insolvency proceedings. Call notices to the bank's creditors will not be issued."

http://www.kaupthing.com/pages/164?p...10/1258139.xml
Reply With Quote
  #45  
Old 09.10.2008, 11:52
Forum Legend
 
Join Date: Jan 2007
Location: Geneva
Posts: 5,514
Groaned at 123 Times in 108 Posts
Thanked 3,297 Times in 1,737 Posts
Shorrick Mk2 has a reputation beyond reputeShorrick Mk2 has a reputation beyond reputeShorrick Mk2 has a reputation beyond reputeShorrick Mk2 has a reputation beyond reputeShorrick Mk2 has a reputation beyond reputeShorrick Mk2 has a reputation beyond repute
Re: New Online Bank .... more %

Quote:
View Post
Here it is:

http://www.kaupthing.com/pages/164?p...10/1258139.xml

the deposits in Iceland are safe, but what about those in other countries?
Safe by what standards?

Kaupthing was forced by regulators to stop operations and freeze the money locally in Austria and Finland.

That ought to tell you something.
Reply With Quote
  #46  
Old 09.10.2008, 16:34
marton's Avatar
Forum Legend
 
Join Date: May 2008
Location: Kt. Zürich
Posts: 11,094
Groaned at 510 Times in 433 Posts
Thanked 19,984 Times in 10,538 Posts
marton has a reputation beyond reputemarton has a reputation beyond reputemarton has a reputation beyond reputemarton has a reputation beyond reputemarton has a reputation beyond reputemarton has a reputation beyond repute
Re: New Online Bank .... more %

Quote:
View Post
Safe by what standards?
According to the Swiss 20 Minutes newspaper today, Swiss customers with less than 30K CHFin a Kaupthing account must not worry; it is insured.

Marton
Reply With Quote
  #47  
Old 09.10.2008, 19:43
gbn's Avatar
gbn gbn is offline
Forum Legend
 
Join Date: Dec 2005
Location: Zuri Oberland
Posts: 2,747
Groaned at 104 Times in 71 Posts
Thanked 2,398 Times in 1,124 Posts
gbn has a reputation beyond reputegbn has a reputation beyond reputegbn has a reputation beyond reputegbn has a reputation beyond reputegbn has a reputation beyond repute
Re: New Online Bank .... more %

WTF?
UK local councils used Icelandic banks and lose millions

And others
Reply With Quote
  #48  
Old 10.10.2008, 01:11
Forum Legend
 
Join Date: Jan 2007
Location: Geneva
Posts: 5,514
Groaned at 123 Times in 108 Posts
Thanked 3,297 Times in 1,737 Posts
Shorrick Mk2 has a reputation beyond reputeShorrick Mk2 has a reputation beyond reputeShorrick Mk2 has a reputation beyond reputeShorrick Mk2 has a reputation beyond reputeShorrick Mk2 has a reputation beyond reputeShorrick Mk2 has a reputation beyond repute
Re: New Online Bank .... more %

Quote:
View Post
According to the Swiss 20 Minutes newspaper today, Swiss customers with less than 30K CHFin a Kaupthing account must not worry; it is insured.

Marton
Oh, if 20 Minuten said that then it must be safe.
Reply With Quote
  #49  
Old 10.10.2008, 01:20
marton's Avatar
Forum Legend
 
Join Date: May 2008
Location: Kt. Zürich
Posts: 11,094
Groaned at 510 Times in 433 Posts
Thanked 19,984 Times in 10,538 Posts
marton has a reputation beyond reputemarton has a reputation beyond reputemarton has a reputation beyond reputemarton has a reputation beyond reputemarton has a reputation beyond reputemarton has a reputation beyond repute
Re: New Online Bank .... more %

If they had the money in a bank account then they obviously did not need it, it was just a reserve; so no problem.

Do they plan to fire the people who put the money into foreign non-insured accounts?

Marton
Reply With Quote
  #50  
Old 10.10.2008, 06:38
gbn's Avatar
gbn gbn is offline
Forum Legend
 
Join Date: Dec 2005
Location: Zuri Oberland
Posts: 2,747
Groaned at 104 Times in 71 Posts
Thanked 2,398 Times in 1,124 Posts
gbn has a reputation beyond reputegbn has a reputation beyond reputegbn has a reputation beyond reputegbn has a reputation beyond reputegbn has a reputation beyond repute
Re: New Online Bank .... more %

Quote:
View Post
Oh, if 20 Minuten said that then it must be safe.
If the 20 minutes reported it, it was reported days ago in real newspapers.
Reply With Quote
  #51  
Old 10.10.2008, 07:48
Goldtop's Avatar
Forum Legend
 
Join Date: Feb 2008
Location: Zurich
Posts: 2,844
Groaned at 11 Times in 11 Posts
Thanked 905 Times in 625 Posts
Goldtop has a reputation beyond reputeGoldtop has a reputation beyond reputeGoldtop has a reputation beyond reputeGoldtop has a reputation beyond repute
Re: New Online Bank .... more %

Quote:
View Post
Oh, if 20 Minuten said that then it must be safe.
Here is the official statement from the Swiss Federal Banking Commission:

9 October 2008
SFBC takes measures to protect investors of the Swiss Branch of Kaupthing Bank
The turbulences around the Icelandic Group Kaupthing have consequences on its branch, established in Switzerland last July. Due to the liquidity constraints of the whole group, as well as subsequently of its Geneva branch, the SFBC has appointed two Commissioners. It will be their task, to establish transparency about the financial situation of the branch and to safeguard its assets. In the meantime, the bank (branch) has been ordered to refrain from executing any further payments. Exempt from this order are claims below CHF 5'000. Claims up to CHF 30'000 are covered by the Deposit Insurance Scheme of Swiss Banks. The Commissioners shall - together with the Deposit Insurance Association - aim at a speedy payment of such insured deposits.

http://www.ebk.ch/e/aktuell/index.html
__________________
Caveat lector!
Reply With Quote
  #52  
Old 12.10.2008, 11:19
Member
 
Join Date: Jul 2007
Location: Kindhausen
Posts: 133
Groaned at 6 Times in 5 Posts
Thanked 69 Times in 37 Posts
PitBull has earned some respectPitBull has earned some respect
Re: New Online Bank .... more %

Greetings,

Had a lucky escape from Kaupthing CH: withdrew down to 30K on Saturday last week, then got rather concerned with IceSave UK issues and withdrew the rest on the Monday - reached my (CS) account Tuesday and now Kaupthing are not processing any further transactions.

Mind you I still have 20K with IceSave in the UK - won't lose it because it's protected, but might take 6 months to recover it. Given it was a 1-year fix it ain't urgent, but even so it's a pain.

Regards.

PitBull.
Reply With Quote
  #53  
Old 17.10.2008, 14:23
marton's Avatar
Forum Legend
 
Join Date: May 2008
Location: Kt. Zürich
Posts: 11,094
Groaned at 510 Times in 433 Posts
Thanked 19,984 Times in 10,538 Posts
marton has a reputation beyond reputemarton has a reputation beyond reputemarton has a reputation beyond reputemarton has a reputation beyond reputemarton has a reputation beyond reputemarton has a reputation beyond repute
Re: New Online Bank .... more %

Quote:
View Post
...Had a lucky escape from Kaupthing CH: ...
According to todays newspaper, Swiss customers of Kaupthing got their first instalment of 5,000 CHF today. Look after it carefully chaps & chapesses.

Marton
Reply With Quote
  #54  
Old 20.10.2008, 23:14
marton's Avatar
Forum Legend
 
Join Date: May 2008
Location: Kt. Zürich
Posts: 11,094
Groaned at 510 Times in 433 Posts
Thanked 19,984 Times in 10,538 Posts
marton has a reputation beyond reputemarton has a reputation beyond reputemarton has a reputation beyond reputemarton has a reputation beyond reputemarton has a reputation beyond reputemarton has a reputation beyond repute
Re: New Online Bank .... more %

Quote:
View Post
According to todays newspaper, Swiss customers of Kaupthing got their first instalment of 5,000 CHF today. Look after it carefully chaps & chapesses.

Marton
more good news
"Iceland is poised to announce a $6bn International Monetary Fund-led rescue package, backed with co-ordinated action from other central banks, to help stabilise its economy after its banking system collapsed this month."

marton
Reply With Quote
Reply

Tags
interest, kaupthing, online banking, savings




Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
bank safety bluefish Finance/banking/taxation 22 29.01.2010 17:05
UK / Swiss bank? maytree Finance/banking/taxation 15 26.11.2009 16:39
Need a safe bank Lechuga Finance/banking/taxation 11 13.04.2007 12:40
Bank Loans dwilkinson Finance/banking/taxation 20 19.02.2007 11:27


All times are GMT +2. The time now is 06:05.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2021, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0