FSCS springs into action

Savers with failed Icelandic banks whose accounts we not transferred to ING, the Dutch bank, will be compensated instead by the British protection scheme. The Financial Services Compensation Scheme (FSCS) said it would write to about 3,000 affected depositors with accounts Heritable, a subsidiary of Landsbanki, and Kaupthing Singer & Friedlander. Both banks have been declared unable to meet their obligations to depositors, giving the green light to the FSCS to begin considering claims for compensation. The Treasury used its powers to transfer the majority of Heritable's retail deposit book and the Edge deposit book of Kaupthing to ING Direct, the FSCS said. The remainder of the business of these banks has gone into administration. The retail deposits that had not been transferred to ING Direct would be paid out through the... [read full story]