New calls to guarantee deposits as turmoil strikes the markets
Tuesday 30th September 2008, 2:59PM BST.
MINISTERS faced fresh calls to guarantee bank deposits this morning to reassure both high street savers and major international investors.
Finance industry leaders urged them to act quickly as stock markets went into freefall yesterday following the news that the US Congress had thrown out a $700 billion rescue package for the banks.
They met yesterday to discuss the impact of the deepening crisis and concluded that Jersey was well-placed to be part of the solution in the immediate term. However, concern has been expressed about how the Island’s wider economy — and therefore ordinary people —will be affected in the coming 12 to 18 months.
Jersey Financial Servi-ces Commission director general John Harris said that when business in London slowed and jobs were lost, there would be a definite effect on Jersey.
• Picture: Sell, sell, sell . . . Traders unload shares on the floor of the Brazilian Mercantile and Futures Exchange in Sao Paulo this morning
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It seems that we have moved from a position of quiet confidence to one of grave concern in a few weeks.
The nasty cold breezes blowing down King Street may not be anything like the icy blasts that are besetting Main St USA but they are cold.
Jobs could be lost, private pensions for those retiring in the near future could well be smaller.
If a bank that had substantial deposits from islanders did go under then the States are going to be in a very difficult position indeed.
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Having left the Island, I retain funds there. However, the lack of ANY States iniative on protecting depositors means that my monies will shortly move elsewhere.
Come on Ministers(!) take a decision rather than add this to the long list of deferred decisions.
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And who is going to pay for the depositor protection scheme?
It’ll either have to be the taxpayer from general taxation (GST at 17.5% should cover it), or the banks from profits (likely to drive them away) or the depositors from their interest.
Why not make it optional for depositors? They could either keep the interest in whole for themselves (along with the risk), or the bank could slice a levy of (say) 1/8% into a central scheme in the event of bank failure.
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The Jersey scheme would be relatively inexpensive as only ‘top’ banks are allowed into the island.
The UK scheme covers deposits up to £35,000 per account, that would cover most islanders.
Better a scheme than a few thousand islanders protesting in the Royal Square because they have lost all their readys.
The GST protest would seem quite tame compared to that.
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Ministers.. If you do can not sort this out before election day PLEASE GO NOW .. Its a disgrace that the people of Jersey,s bank investments are not safe guarded like other modern societies. Past politicians should have picked this up and should hang their sad heads in shame. Yes all of you.
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The legislation was drafted several years ago and our government keeps on refusing to pass it. Are you going to vote these same people back in?
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we need to have our savings protected
my husband and I are both on the verge of retiring if we lose our savings at hbos this will be devasting to our retirement. I am sure there are many people like us who are very very worried.
something has to be sorted now not later
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Ireland – here we come!
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I’m sure that even RH would agree that there has been a significant amount of dither and lack of vision over this issue that really needs to be put right at least three years ago. Caught with their pants down again! Useless.
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I have 87,000 pounds investment in 6.6 5 for another 11 months . is my money safe / Its my lifes savings and I intend to retire in UK in 2009
its after a lifes time saving for this day.
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