Manuel for Kaupthing-savers

Kaupthing, one of the major Icelandic banks, froze over 1000 Belgian accounts. The bank didn't go bankrupt, but preventatively blocked these accounts, until they manage to sell a few of there assets. PricewaterhouseCoopers is temporary managing the bank through these difficult times, by helping them to find a buyer for their assets. If no solvent buyer is found, the governement will pay up to €20.000 for each depositor.

Nikolaas Van de Loock

(source: United Photos)

Iceland's financial system collapses

Despite a three-day closure of stock exchange, the OMC-Iceland 15-index suffered a massive breakdown, dropping from 2.287,53 points last Thursday to 717,09 on Monday. 

In an attempt to save the Icelandic financial system, the government took control of three of the country's largest banking institutes (Kaupthing Bank, Glitnir Bank and Landsbanki Islands) - a futile attempt, as proven yesterday. Due to this crisis, trade and investments are possibly at the lowest level ever, as foreign banks are no longer willing to accept the Icelandic krona, causing the devaluation of the currency with no less than 50% since the beginning of this week. Uncertainity reigns today in Iceland; some analysts suggest that Iceland should bail out of the IMF, while others think Iceland should seek rescue from international lenders - leaving the Icelandic government with the enormous challenge of saving its country from "national bankruptcy".

Nico Schoutteet

(sources: NY Times - http://www.nytimes.com/2008/10/10/business/worldbusiness/10icebank.html?scp=3&sq=iceland%20crisis&st=cse)

Fortis celebrating a crisis

Fortis Insurance Belgium considered this time of the year appropriate to hold an exclusive party in Monaco.
Last week Fortis threw a little party that was meant for their 50 best delegates who were granted not only a sleeping place in an extremely expensive hotel, but also a dinner in one of the most prestigious restaurants of the world. The price tag of this all, plane tickets included, was about €150,000. Of course it won’t be a complete surprise that this party caused a lot of indignant reactions of astonished people, considering the monetary crisis we’re dealing with at the moment.

The prestigious restaurant Louis XV in Monaco

Maxine Truyens

Source: http://www.nieuwsblad.be/Article/Detail.aspx?ArticleID=GB521L3RV

THE FORTIS FREEFALL

Everyone expected a brand new start for Fortis, the bank received namely 14.4 billion euro to get back on track but it went from worse to worst! As soon as Fortis was back on the stocking market, the exchange rate collapsed by 64 %. When the market opened, one share was worth 5 euro but few minutes later you could buy one for 1.96 euro only. If things continues like this, Fortis will have a dark future.

Hannes Raes (source: De Tijd)

Kaupthingsavers in trouble! Or not?

Savers who have a deposit account at Kaupthing Bank Belgium can not withdraw money from their savings account due to a 'suspension of payment', issued at the beginning of october. Kaupthing, on the edge of bankruptcy, ensures its savers that anything is still possible to safe the bank ranging from a complete company takeover to a takeover of the clientele. The 'suspension of payment' remains standing untill a takeover is carried out, in this period no interests will be given. If the bank does go bankrupt then the savers can count on a Luxembourg protection fund that will compensate them with a maximum of 20000 euros, interests included.

Jens Ponnet

(Source:Testaankoop)

The world is going down.

Stock exchange crashes all over the world, worldwide recession, uncertainty, … , how will this end? As you know that even the mighty United States of America came to aid for a few insurance companies and banks; as there are AIG, bank of America; etc who were saved from ruin. Several rescue operations were find out, for example the fact that China’s bank should assist. Furthermore the question rises if these intentions will be held and in fact if the economy can abandon this dreadful situation?


By Roland Nathan

source:
http://www.spiegel.de/international/business/0,1518,578944,00.html

the amounts of cash in circulation

During the last weeks, the amounts of cash in circulation in the euro zone increased dramatically. This is a result of both the financial crises, which has reached a peak in the last weeks and the lack of confidence in the financial health of markets and banks. Despite the fact that this situation is for some people and companies a real catastrophe, it is also inspiring others to rob and steal the property of others. Luckily governments are not only involved in saving financial organizations, trying to restore trust and confidence but they are also obliged to protect private property in a more severe way.

Elias Van Bever
source : http://www.tijd.be/nieuws/economie-financien/Gezinnen_potten_geld_op.8089328-600.art