This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.guardian.co.uk/money/2013/mar/25/uk-laiki-bank-customers-business-as-usual
The article has changed 7 times. There is an RSS feed of changes available.
| Version 5 | Version 6 |
|---|---|
| UK Laiki Bank customers told 'it is business as usual' | UK Laiki Bank customers told 'it is business as usual' |
| (9 months later) | |
| Laiki Bank customers in the UK face no restrictions on access to their cash and have been told it is "business as usual" at the firm's four British branches, despite an overnight decision to close its Cyprus parent. | Laiki Bank customers in the UK face no restrictions on access to their cash and have been told it is "business as usual" at the firm's four British branches, despite an overnight decision to close its Cyprus parent. |
| Under a bailout plan agreed in the early hours of the morning, Laiki Bank will be wound up and its €4.2bn in deposits of more than €100,000 will be placed in a "bad bank", meaning they could be wiped out entirely. | Under a bailout plan agreed in the early hours of the morning, Laiki Bank will be wound up and its €4.2bn in deposits of more than €100,000 will be placed in a "bad bank", meaning they could be wiped out entirely. |
| Cypriot savers with smaller deposits at Laiki will see their accounts transferred to the Bank of Cyprus; however, in the UK the two banks will remain separate. | Cypriot savers with smaller deposits at Laiki will see their accounts transferred to the Bank of Cyprus; however, in the UK the two banks will remain separate. |
| Bank of Cyprus UK customers have been told they will be completely unaffected by the bailout, as the bank operates as a separate entity incorporated in the UK. | Bank of Cyprus UK customers have been told they will be completely unaffected by the bailout, as the bank operates as a separate entity incorporated in the UK. |
| In contrast, Laiki Bank's UK operation is set up as a branch of the Cypriot parent bank, so the situation is less clear-cut. | In contrast, Laiki Bank's UK operation is set up as a branch of the Cypriot parent bank, so the situation is less clear-cut. |
| Ruth Harvey of Laiki Bank in the UK said that although not all of the details of the impact of the agreement were known, there was no need for the 13,000 UK customers to panic. "We are open, it's business as usual, and there are no restrictions on our client's accounts," she said. "The message we want to get over to our customers is to keep calm and carry on." | Ruth Harvey of Laiki Bank in the UK said that although not all of the details of the impact of the agreement were known, there was no need for the 13,000 UK customers to panic. "We are open, it's business as usual, and there are no restrictions on our client's accounts," she said. "The message we want to get over to our customers is to keep calm and carry on." |
| Harvey said there had been a rise in inquiries from customers since news of a potential tax on Cyprus's savers first emerged 10 days ago, but there had not been a big increase in activity. "We are sitting on a sea of cash," she added. | Harvey said there had been a rise in inquiries from customers since news of a potential tax on Cyprus's savers first emerged 10 days ago, but there had not been a big increase in activity. "We are sitting on a sea of cash," she added. |
| Laiki Bank's UK customers are protected against losses under Cyprus's compensation scheme rather than the UK's Financial Services Compensation Scheme. This protects savings worth up to €100,000 (£85,500) on deposit in the UK. | Laiki Bank's UK customers are protected against losses under Cyprus's compensation scheme rather than the UK's Financial Services Compensation Scheme. This protects savings worth up to €100,000 (£85,500) on deposit in the UK. |
| Harvey said it was unclear what would happen to savers with balances above that level, and the bank was working with the Bank of England and Financial Services Authority to determine what might happen if the bank was unable to repay deposits. | Harvey said it was unclear what would happen to savers with balances above that level, and the bank was working with the Bank of England and Financial Services Authority to determine what might happen if the bank was unable to repay deposits. |
| Laiki bank employs 150 staff in three branches in London and one in Birmingham, and offers a range of savings accounts, credit cards and loans to private and corporate customers. | Laiki bank employs 150 staff in three branches in London and one in Birmingham, and offers a range of savings accounts, credit cards and loans to private and corporate customers. |
| When the Guardian visited the bank's branch in central London's Mayfair, a stone's throw from Berkeley Square, a male employee told us it was "business as usual" before showing us the door. A small handful of employees and customers came and went; all declined to say anything. | When the Guardian visited the bank's branch in central London's Mayfair, a stone's throw from Berkeley Square, a male employee told us it was "business as usual" before showing us the door. A small handful of employees and customers came and went; all declined to say anything. |
| The building carries no signage or anything else that would identify it as a branch of Laiki Bank. The bare-looking foyer features no promotional material and there were no counters to be seen. The only giveaway was a "customer notice" in the window stating that the bank would be closed on Good Friday and Easter Monday, and wishing customers a happy Easter, but making no reference to the latest events. | The building carries no signage or anything else that would identify it as a branch of Laiki Bank. The bare-looking foyer features no promotional material and there were no counters to be seen. The only giveaway was a "customer notice" in the window stating that the bank would be closed on Good Friday and Easter Monday, and wishing customers a happy Easter, but making no reference to the latest events. |