What happens to savers when a bank goes bust?
- Thread starter Shei
- Start date
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.
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.
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.
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.
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.
