Indo: David McWilliams: Irish Deposits could be hit Argentinan Style

Nope, you are not alone Godfather ! I've kept savings here with Ulster. Tho havin said that, I most of my money is in shares held with a foreign broker.
 
Your are not the only one godfather, I moved 30% of my deposits to NUK ireland and 7% into shares in America. Still have the rest in Irish banks but looking at moving this eventually.
 
savings with Nationwide UK and Ulster - contemplating moving abroad, probably Germany but from looking on this forum, there doesnt appear to be any easy route except to actually travel over there....
 
coin said:
I think our situation would get alot worse if Ireland were to delault on the debt. We rely on imports so hyperinflation would happen and foreign companys will leave the country.
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Inflation is a monetary phenomenon and can only be created by central banks' monetary policy and government fiscal policy. If/when Ireland defaults, high or hyper inflation would be the result of Irish government and Irish central bank policies, nothing else.


I have a little bit of my money left in Rabo, mainly some emergency cash and money some for holidays and other larger discretionary spending; rest of cash and investments are abroad. The reason I chose Rabo is that I think that in a worst case scenario it would possibly take a little longer to freeze those accounts, hopefully giving me enough time to transfer the money into one of their mutual funds on offer.
 
I keep a "float" in AIB to cover expenses. I moved our savings to a few different foreign banks before Xmas and I add to these every month with what's over and above this float.
 

I moved most from Irish banks to NUK/Rabo as I assumed foreign banks were safer than Irish banks but how safe are their deposits that are located here?

I have a Keytrade account as well but the rate is poor and Belgium doesn't look too safe either.
 
Pls let me know if you're planning to move the remaining savings abroad. To Vega: you might try DKB which is described in my post "Did anyone of you try to open an account with one of the biggest german banks?"
 
Non Irish banks

The fact we're even contemplating deposit security just shows how far that the banks have fallen. Client manager in UB advised me that up to €200k is guaranteed per couple for joint account under Irish govt scheme. Didn't mention anything about it's parent company RBS which is effectively the UK Govt. I presume they'd step in to cover deposits there (same with Nationwide UK, Rabo etc) or am I just being naive?!
 

The Irish govt guarantee is only as strong as the Irish govts finances, ie dependent on the kindness of strangers.

If your UB manager thought that mention of the Irish Govt guarantee would reassure. There is something else to be said, recent evidence has shown that Irish bank managers dont know anything about banking.

The Irish banks have already failed. They are being propped up with up to €160bn from ECB at the moment. If you think that can continue long term I would disagree. Maybe all will turn out for the best, I am not betting my life savings on it.

If (when?) the govt introduces legislation that adversely affects depositors, it will affect all banks operating in Ireland irrespective of their country of orgin.
 

I read that article alright, and it read to me like a covert warning. A warning I think I'll have to heed.
 
This is probably a stupid question, but I'll go for it anyway.

Some of you mention that it is a possibility that deposits could be devalued by a certain percentage. In this scenario, would a persons liabilities also be devalued by a similiar percentage.

For example, if I had a mortgage of 200K with BOI and I had savings of 50K with them. And in the process of a default, my deposit was devalued by 50% to leave me with 25K, would my mortgage be devalued similarly (i.e. by 50% to 100k) ??
 


No you still have to pay your mortgage in full.
 
cashier said:
No you still have to pay your mortgage in full.
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It doesn't sound fair does it ? If I give someone a loan of my money (a deposit) and they also give me a loan, why should I have to repay them the money I borrowed off them if they won't repay me the money I loaned to them ? Suppose a deposit was far in excess of the mortgage taken out for example ? Under various consumer laws, normally you only deal with one company if you do your business through that one company e.g if my laptop doesnt work when I take it home I don't take it back to the HP factory, I take it back to Dixons, Peats etc.
 
sorry for making this point again but if Euro based deposits take a hit it will destroy banks in all Eurozone countries. The Domino effect will be catostrphic in the piigs and throw in belgium at least. The German and French banks will be the biggest losers. The question about paying back your mortage in full if you take a hit on deposits... No one will pay a penny off their mortgage if deposits are hit not to mind paying a discounted mortgage back. The situation cant be compared to Argentina Iceland etc because we are part of a single currency market. Its like saying 20 years ago deposits in cork take a 10% hit because cork is broke and the rest of the country remains untouched.
The eu are forcing us to take pain and make a correction to the point where we cant take anymore and then a "solution" will kick in but we wwould have made the adjustment.
 

I promise that the rational side of my brain agrees with you 100%...

But why at my university some of my teachers predicted that the Euro was the worse project the EU was going to undergo without first unifying taxation and political system?
 
Isle of Man

Hi

Just wondering if anybody has considered the Isle of Man as banking options?
It is an international Bank haven with several British Bank options including National UK.
 
I just listened to Colm McCarthy on Marian Finucane's programme and he argued that depositors' money is safe. He also disagreed with the McWilliams banking solution but, in the absence of McWilliams, he didn't elaborate too much.
The first segment of the programme deals with the Moriarity fall-out and the second deals with our financial crisis. It's probably available on podcast.
 
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