States guarantee savings
Friday 3rd October 2008, 4:41PM BST.
EVERY penny of Islanders’ savings is to be guaranteed by the States, the Council of Ministers have announced.
In a statement released this afternoon, after two days of top-level discussions, Chief Minister Frank Walker revealed that they would bring a proposition to the States that ‘the bank deposits of Island residents should be fully protected’.
It is widely expected that the proposal will be rubber stamped by the States. States Members are to be called to a meeting on Monday so that the council can brief them on its plans.
• Full report in Saturday’s Jersey Evening Post.
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Thank gos my £5 is saved!! Do they really believe that the normal people of this island have huge savings tucked away some where – I wish!!
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Well,
Whilst I am not a Jersey resident, I AM Jersey domiciled AND I remain a Jersey taxpayer, but, if the report is correct, it appears that my deposits will not be protected.
Is this not discrimination?
Presumably Jersey residents will expect to be (and are) covered by other jurisdictions’s compensation schemes.
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Good news for Island residents but nothing for non-residents with savings in Jersey Banks. I’m surprised that the Island authorities have not sought to protect the Island’s deposit base in a more comprehensive manner, although I do recognise the scale of the problem this poses. As guarantees become the norm onshore there will be reduced enthusiasm for the placing of personal savings in offshore deposits in Jersey in spite of marginal tax benefits. In this context, and as a start, the States should at least explore ways in which the UK depositor protection scheme could be extended to Jersey subsidiaries of the major UK banks. For instance, in respect of sterling deposits which inevitably find their way onto the balance sheets of the parent companies in London.
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What do these jokers get paid for? a knee jerk reaction. This should have been in place years ago. Looking after the interests of the public comes as a last resort.
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That was a fast bit of work.
Now if we could just think of a way that failure to build the incinerator would threaten the future of Unregulated Funds in the island, it would be up by Christmas!
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They’ve got something right! now take GST off food, bring in the anti-discrimination legislation and some proper employee protection legislation (can’t you just feel them wincing at that one) and maybe people will start believing in politics again.
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Well, this seems a very clear invitation to non-resident investors to take their money away from Jersey and find home for their money in one of the many alternatives which offers some kind of guarantee! I was under the impression that the Channel Islands welcomed investment from outside the islands?
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I think we are all forgetting that this guarantee is being made using our [the Jersey Taxpayer] money. OK if you have thousands tucked away but if a Jersey bank goes down it will be us having to pay through yet more taxes.
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Bruce – Giving away all our money is a strange definition of “they got something right”. Agree with you on GST off ALL food and drink but not the proposed VAT model which lets face it is a total sham. It will cost more than 3% to implement and would be a disaster. I know as have seen first hand how complex and expensive it is for the smaller retailer in the UK. Anti-discrimination would be fine if it included equal rights for Jersey people but we are excluded. Finally looking at the line up for our next Senators it will be a long time before I start believing in politics again, assuming Jersey is not just a part of the UK by then.
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i could be wrong but people who have money in
banks in england are only covered up to £35.000
per bank if in in jersey every penny is covered
where will this money come from and if it did
happen how much will it cost jersey i am lucky
i don’t have to worry about savings i have none
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As some people have already pointed out it would be great to have some savings worth protecting in the first place! In these times it is extremely difficult to even attempt to save much as i would like to! I feel for those with low income and young children and nothing to fall back on!
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There is no aindication that any of the banks would or could go bust.
States should have followed the Irish/Greek way of guaranteeing all deposits – resident or non-resident.
Money would flow in to the banks – helping their balance sheets and further reducing the (very) unlikely event of them going bust.
Anyone know if Anglo Irish or AIB Jersey deposits fully cover non-residents?
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So is this just the deposits of Jersey residents that will be covered by the scheme? What about all of the people that hold their money in Jersey but live elsewhere??
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For a number of years the larger banks have been declaring huge, some might say obscene, profits. Would it not be preferable to require banks which are registered in Jersey to quarantee a level of depositer protection, backed up by solid capital investments,rather than have the States (and the taxpayers assets) act as guarantor. The so-called Rainy Day Fund of circa £M380 is a drop in the ocean when you view it in light of the multi billion pound packages needed to even support some of the banks. Do the States even know how much in potential liabilities they are talking about before blightly announcing “guarantees”.
There are grave dangers in following the pack – however well intentioned. The current situation is extremely volatile and care should be exercised.
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UK banks cover increases to £50.000 per account on Tuesday next. Ex pats will have to decide if the marginally higher interest is worth the risk in investing in Jersey. I believe today the answer would be an emphatic no.
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I note that ‘Island residents’ are to be covered by the scheme. Does this mean that the monies of non residents are not covered?
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Definitions please of “islanders savings” and of “islanders residents”. Are they identical and therefore “non-residents” are totally excluded?
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i wouldn’t start taking your money and putting somewhere with a better “guarantee”. generally deposit guarantees are meaningless. if the day ever came that they were called on, there is unlikely to be any money to pay for them. e.g. the irish guarantee of 400bn is two and half times the size of the coutnry’s GDP, if paid it the country would be bankrupt. Same applies to the UK, it won’t have the money its got too much debt as it is. Even if there is a pot, it will take forever before anyone see’s their money back, by which point, if things have really got that bad in the first place, the currency is probably worthless anyway.
The guarantees are just being annoucned to pacify people in order to avoid bank runs. in other words its meaningless spin.
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Apologies Terry, you’re absolutely right. I naively assumed that the BANKS were being made to guarantee our deposits. HA! Seems like our money is the only money left.
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