# Where does State Savings (An Post) fit in during a bank bailout?



## galleryman (16 Nov 2010)

If (and I really mean when) Ireland accepts an EU BANK Bailout later this week, what implications is that likely to have for deposits in State Savings?  It is not a bank per se but does hold a lot of deposit money. 

Any ideas?


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## Sunny (16 Nov 2010)

There are no implications just like there are no implications for deposits in any of the banks.


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## frankmac (16 Nov 2010)

Sunny said:


> There are no implications just like there are no implications for deposits in any of the banks.


 
According to David McWilliams, today on Pat Kenny show, they are safe.


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## galleryman (16 Nov 2010)

I understand that the deposits in bank may be "safe" if they are current guaranteed by the Irish State and if that isn't good enough that they will essentially be underwritten by the EU Bailout Fund.  It is the conditions attached with any external bailout that concerns me, such as restrictions on withdrawls etc.


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## jpd (16 Nov 2010)

Given that the only bailout in the Eurozone to date was for Greece, and that their deposits were not affected, we can presume that the same will/would apply in our case. But who knows? No one at all, I'd guess, although lots of people have opinions.


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## Sunny (16 Nov 2010)

galleryman said:


> I understand that the deposits in bank may be "safe" if they are current guaranteed by the Irish State and if that isn't good enough that they will essentially be underwritten by the EU Bailout Fund. It is the conditions attached with any external bailout that concerns me, such as restrictions on withdrawls etc.


 
There won't be any restrictions.


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## galleryman (16 Nov 2010)

I wouldn't care so much only I sold my house and now have the net proceeds deposited in Ireland. The prospect of being told I can't have it back for a few years is not an attractive one.


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## Protocol (16 Nov 2010)

I don't think any loan from the EU EFSF would involve any confiscation of savings.


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## galleryman (16 Nov 2010)

not confiscation, but controlled withdrawls. I know it didn't happen in Greece but who's to say it won't happen here to prevent flight of funds or a run on the banks.  I just don't want to be told "NO you can't have all your money now, you can only have €2,000 now and you need to come back in a week if you want another €2,000" etc


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## dockingtrade (16 Nov 2010)

galleryman said:


> not confiscation, but controlled withdrawls. I know it didn't happen in Greece but who's to say it won't happen here to prevent flight of funds or a run on the banks. I just don't want to be told "NO you can't have all your money now, you can only have €2,000 now and you need to come back in a week if you want another €2,000" etc


 
When theres a bailout there has to be  a new bank or 2  created and the others discarded. Its the only way to create any kind of confidence. Psychologically we cant be associated with the rot


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