Will Government take deposits?

but I really don't think the government will touch deposits. It is far too extreme and would cause utter chaos in the EU.
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Why? What's so special about Ireland?

They've already raided pensions. These are funds that the pension holders themselves can't even touch. They've also introduced a property tax. It's not a huge leap for them to get stuck into deposits.
 
I read on here that bondholders and depositors were covered by the same legislation.
 
JoeBallantin said:
Yes, different banks will have different guarantee schemes.

The Ulster bank seems to have an account governed under N.I law

(iv) The laws of Northern Ireland apply to the contract between you and us. The law which
we take as the basis for establishing relations with you prior to the conclusion of the
contract is the law of Northern Ireland. The courts of Northern Ireland shall have nonexclusive jurisdiction over any disputes arising between you and us that are not resolved
by other means.

I'd be worried about 'non exclusive'.. what does that mean? I'd be asking for clarification, and if none was coming I'd be going elsewhere. (For example, AIB GB use the word exclusive as would most if not all other contracts)
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Thanks for looking this up for me. Very grateful, next time I am in the bank I will asked them clarification of hte word ''non exclusive' :)
 
umop3p!sdn said:
Why? What's so special about Ireland?

They've already raided pensions. These are funds that the pension holders themselves can't even touch. They've also introduced a property tax. It's not a huge leap for them to get stuck into deposits.
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They haven't "raided pensions".

There is an additional tax.

An additional tax is very different to taking our deposits.

If they took our deposits the people in Portugal, Greece and Spain (etc.) would freak out and start withdrawing their money from their own banks.

The ECB cannot handle a large scale bank run in the EU.
 
They have raided the pensions. The tax is on the capital amount, not on any profit or interest.

If this is an extra tax then it's retrospective.

If the government told Irish banks to confiscate 1% of all deposits, and give the money to GOV.ie.. would that be a tax, or property confiscation? Could it be dressed up as a tax? (if so, how?)
 
JoeBallantin said:
If the government told Irish banks to confiscate 1% of all deposits, and give the money to GOV.ie.. would that be a tax, or property confiscation? Could it be dressed up as a tax? (if so, how?)
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If they follow the logic of last week, they could label it as a 'special interest levy' and argue that (1) most deposit accounts should be earning at least 1% in interest so they are merely levying that interest (2) savers got a very good deal in the past with SSIAs and low DIRT levels, so the taxpayer helped them build up their savings (3) the money is badly needed for job creation and Fás will spend it carefully.
 
I rang Ulster bank to ask about the 'non-exclusive jurisdiction' thing.. they are unsure and
say they will ring me with an answer.

The contract for the south also claims 'non exclusive jurisdiction'.


I think that's a problem.
 
umop3p!sdn said:
Why? What's so special about Ireland?

They've already raided pensions. These are funds that the pension holders themselves can't even touch. They've also introduced a property tax. It's not a huge leap for them to get stuck into deposits.
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Its this kind of writing that really annoys me...they have NOT raided the pension funds, they have imposed a levy of 0.60% that will be in place for approx 4 years, to funds a job stimulation programme.

What property tax? I havent paid any property tax yet???

We are in a bad enough state without this kind of carry on... state the facts and please dont be making things out to be 10 times worse then they are!
 
Bobby1 said:
Its this kind of writing that really annoys me...they have NOT raided the pension funds, they have imposed a levy of 0.60% that will be in place for approx 4 years, to funds a job stimulation programme.
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It doesn't matter if it is 0.6% or 60%. They HAVE raided the pension funds. They didn't go after investment gains and profits, they went after the actual capital.
 
On the Ulster Bank non-exclusive jurisdiction thing. They acknowledge that other courts can be used at times, but they're not clear on how these other courts can be used., or who by.

They have nothing further to say, so I'd avoid them.
 
Bobby1 said:
Its this kind of writing that really annoys me...they have NOT raided the pension funds, they have imposed a levy of 0.60% that will be in place for approx 4 years, to funds a job stimulation programme.

What property tax? I havent paid any property tax yet???

We are in a bad enough state without this kind of carry on... state the facts and please dont be making things out to be 10 times worse then they are!
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Its actually 2.38% over 4 years assuming no growth and that will be lost for the lifetime of the fund.

Its bad enough for me to consider breaking a 2 year fixed term savings account (18 months in) to move it offshore! All the rest of my savings will be offshore once I have the keytrade account open!

Lets see how that helps with recaptialising the banks!

BTW, do you really doubt that property tax, water charges, higher income tax and spending cuts are coming? Things are bad!
 
Have a feeling PS (what ever about deposits in banks) won't care if gov took humans organs to pay their salaries
 
Bobby1 said:
Its this kind of writing that really annoys me...they have NOT raided the pension funds, they have imposed a levy of 0.60% that will be in place for approx 4 years, to funds a job stimulation programme.
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This year, the government imposed a levy of 0.6% on my pension.
Last year, my ATM card was skimmed and a levy of €500 was imposed on my current account.
A good few years back, my car was broken into. The individual concerned imposed a levy on my satnav and mobile phone.

I love that word - it makes me feel so much better when my assets are confiscated with nothing in return :)

I had a reasonable degree of confidence things would work out with Irish banks up until now, but now am genuinely concerned about confiscation of deposits. Well done Michael Noonan. Let the capital flight intensity.
 
'Job stimulation program'

That's a laugh too. So they're reducing the lowest rate of PRSI. Meanwhile all the people who provide jobs are probably considering how much worse is this going to get, and should they emigrate.
 
There has been much discussion on this site about moving money offshore to other eurozone countries. The purpose of this is (a) to stop the government taxing (or siphoning off) bank deposits and (b) to provide safety in the event of an exit from the euro and any subsequent currency devaluation. I just wonder that in the event of a disengagement from the euro, is it possible that, as part of an agreed exit strategy, the offshore deposits of Irish residents in eurozone countries might be repatriated? How likely is such a scenario?
 
Omega - that is an interesting scenario. I would assume that some people have ties with the offshore country, maybe partner is from there or they have a relative working there so they may give a foreign address.
 
Cashier, some people may be able to supply a foreign address. Like others on this site, I opened an account with Keytrade (but haven't used it yet) and thay require photo ID, proof of address, etc. so Irish depositers can be identified..... I'm just trying to envisage the worst-case scenario.....
 
repatriation of off shore accounts

Keytrade require a ID - this would identify people from EU member states - and in the case of a requirement to touch deposits - keytrade as a bank operating in the "control" of the ECB would be somehow "required" to provide this information to the Irish government. I can't imagine the Swiss for example feeling the same obligation.

So what would happen in this scenario - BOI informs the revenue that this account holder has transferred to switzerland - the revenue contacts the account holder and says - you owe X on the savings in switzerland - the account holder replies to say that the money was spent.

How would this be handled?
 
pascal12 said:
Have a feeling PS (what ever about deposits in banks) won't care if gov took humans organs to pay their salaries
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It's the new Health Levy :rolleyes:

As regards worrying about deposits being targeted as a result of the pension levy... has no-one heard of DIRT?
 
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