Is the Irish Bank Guarantee just an Endorsement

Forgive me for my naivety when I ask, what happens if the Irish Banks became bankrupt and the Government Gaurantee Scheme.
What happens people’s money on deposits with banks.
I know the government has gauranteed savings on deposit but if banks failed tomorrow, how can a government repay the shear volume of all monies.
Is there another mechamism in place. Has the government made any represenation to the EU for this eventuality. Has it got the finances to cope with an implosion of the Irish Banking Sector.
I have savings on deposit and just can’t help thinking about it’s safety.
Is the gaurantee scheme simply an endorsement scheme or am I looking at this totally wrong.

Re: Is the Irish Bank Gaurantee just an Endosement

They are already bankrupt and the goverment has already bailed them out. To be on the safe side you need to spead your money around the different banks/groups. If they/the goverment go bust the IMF will be called in, look what happened to Iceland were people lost all their money in their Banks.

Re: Is the Irish Bank Gaurantee just an Endosement

To clarify, did the people of Iceland lose all their money in their Bank Deposit Accounts? Will we be the same or do we have some sort of protection as an EU state.
From your perception I gather you feel it's an endorsment rather than a gaurantee.

Re: Is the Irish Bank Gaurantee just an Endosement

Can the Irish government now afford the Deposit guarantee if another bank requires capital ?

Re: Is the Irish Bank Gaurantee just an Endosement

Towger said:

look what happened to Iceland were people lost all their money in their Banks.

Click to expand...

Link?

People cant just lose their deposits like that, most likely scenario is that your cash will be locked up for 3 months. The EU have been pumping some serious amount of money into this country during the banking crisis. Also it was stated the EU would not let another country end up in the same state as what happened to Iceland.

The guarantee is a guarantee and not just an endorsement.

But a guarantee is only as good as the strenght of the guarantor.

The Irish exchequer is in a very difficult position. It is going to be very difficult to close the exchequer deficit. NAMA is a huge risk.

Yesterday Fitch reduced the credit rating of Ireland to AA- from AA+.

Rabobank is a AAA rated bank. Deposits up to €100k are further guaranteed by the Dutch government. (Check?)

Northern Rock is guaranteed by the British Government which retains its AAA rating.

Brendan