# What happens to savers when a bank goes bust?



## Shei (31 Oct 2006)

Thinking of starting a Quinn Life investment account.  Does anybody know what happens if an organisation goes belly up? Would savers lose everything or is there any protection?
Thanks.


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## ClubMan (31 Oct 2006)

[broken link removed]


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## Badger (31 Oct 2006)

So if, for example, quinn go belly up in the morning I am guaranted to be compensated 90% of my deposit, up to a maximum of €20,000?


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## ClubMan (31 Oct 2006)

Yes - if the institution is covered under the ICCL investor compensation scheme which I believe is the case with _QL_. Note that there is no reason to assume that _QL _is more at risk of going belly up than any other financial institution.


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## Marc (1 Aug 2012)

Isn't it interesting how relevant AAM can be with the benefit of hindsight?


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## so-crates (1 Aug 2012)

And isn't it interesting that someone was asking that question in 2006.


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## Marianne (1 Aug 2012)

Marc said:


> Isn't it interesting how relevant AAM can be with the benefit of hindsight?


 
I don't get your point.  Quinn Life is still trading under new ownership.  Nobody in QL has lost their funds.  Nobody had to claim from the compensation fund.


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## Baracuda (1 Aug 2012)

Life companies are a low risk operation, unlike banks that take in deposits and then loan out a multiable of that deposit to its customers. Life companies must hold assets equal to its liabilities i.e. if you invest 1000 euro in a unit linked fund the life company must hold assets of equal value so if the investor surrenders his/her units the life company simply sells the underlying assets.

We can safely assume after all that has gone on with Mr Quinn over the last few years that the Centrail Bank has gone through Quinn Life accounts and have found that QL comply with the relavant regulation and EU solvency margins and were therefore able to sell it as a going concern.


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## Marc (1 Aug 2012)

Marianne said:


> I don't get your point.  Quinn Life is still trading under new ownership.  Nobody in QL has lost their funds.  Nobody had to claim from the compensation fund.



My point is that we have all just been hit with a 1.3 BN euro bill to fix Quinn insurance because it didn't provide adequate capital reserves. No policy holders have lost out because we have collectively been hit with the tab.


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## Sunny (1 Aug 2012)

Marc said:


> My point is that we have all just been hit with a 1.3 BN euro bill to fix Quinn insurance because it didn't provide adequate capital reserves. No policy holders have lost out because we have collectively been hit with the tab.



That's Quinn insurance. Has nothing to do with Quinn life. People who saved money with Quinn Life have not been bailed out.


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## Marc (2 Aug 2012)

Separate companies yes but controlled by the same person.

October 2008 - Irish Financial Regulator fined Quinn Insurance €3.25m for *group* loan irregularities. 

Was it just luck that Quinn Life didn't get dragged into this?


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## Marianne (2 Aug 2012)

So have you any evidence whatsoever of any irregularities at Quinn Life, a company that is still trading under new ownership?  

Or are you just trying to use this website to spread your idle speculation?


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## Omega (2 Aug 2012)

_...Or are you just trying to use this website to spread your idle speculation?..._
Ouch!


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