Last Friday, I sold everything I had in two separate mutual funds managed by Glitnir bank. One was the now-notorious Fund 9, composed of short-term securities, that Glitnir had touted as being risk-free, in that the only thing that might devalue was the accumulated interest. As YT and thousands of other Nicelanders discovered last week, Fund 9 was far from risk-free and had devalued a substantial amount by the time I sold my shares in it last Friday. Still, I shrugged it off in a sh*t happens kind of way, relieved at least that I had transferred what remained to a normal account which would be insured by the Icelandic State in case everything took the fast track to hell over the weekend.
When I tried to transfer my assets from the other fund, however, I got a message informing me that the transaction would not be processed until the following business day – i.e. today, Monday. This was because the total value would be based on a calculation of the interest rate at the day’s end. This morning I checked my online bank, expecting to see my savings sitting pretty in my account next to the proceeds from Fund 9, but alas, it was not there.
It was then that I understood that the news this morning about the Iceland Stock Exchange halting trading in shares in six Icelandic financial institutions was directly impacting my Fund 1 assets. In other words, my money has been frozen.
My intention was to take the sum – which comprises my entire savings – to a different bank, in line with the not-all-eggs-in-same-basket philosophy. Meaning that if the banks roll later today, at least my savings would be safe.
As it stands now, they would not be, because they’re tied up in short-term securities which cannot be extracted into a normal bank account.
Meanwhile, an announcement has just been made that our Prime Minister will address the nation at 4 pm. The only other statement he has made to the press today is that the situation is “very serious”.
So, if you have a really good joke that you’ve been keeping up your sleeve, that you’ve been saving for a rainy day, the kind of joke that just makes you laugh so hard you just forget everything else, this would be the time to tell it. Please to leave in the comments below. Ta.
NOT HELPING?
The utter miserableness of the weather outside. Gale-force winds with sheets of vertical rain. Ugh. Right now 8°C [46F] [not that I would know, I haven't tried to set foot outside today] and sunrise was at 7:52 am, sunset due for 6:38 pm.
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“In other words, my money has been frozen.”
Winter seems to hit Iceland early this year
Ouch!!
I also had funds in Fund-9. I own a little web development company, and we had ALL our funds in Fund-9.
On tuesday, last week, I was going to pay my employees salary for september, but the fund was frozen.
So I had to postpone the paying of all salaries, and when they opened again on wednesday the first, we had lost 7% of our money. In a “risk free” fund.
Philippe – pls to leeve funnier joke, thx.
Árni Gunnar – MERDE. You have my full sympathy. I’m furious, too.
Here’s one in keeping with the subject.
A young college student came running in tears to her father. “Dad, you gave me some terrible financial advice!” “I did? What did I tell you?” said the dad. “You told me to put my money in that big bank, and now that big bank is in trouble.” “What are you talking about? That’s one of the largest banks in the state,” he said. “there must be some mistake.” “I don’t think so,” she sniffed. “They just returned one of my checks with a note saying, ‘Insufficient Funds’.”
So what did he say at 4pm? Good news or bad? Can’t find it reported anywhere specifically yet, but news sites seems to think public’s deposits are safe?
“Why didn’t the trigonometry problem get the house it wanted?”
“It couldn’t find a COSINE!”
Ha ha. Sorry about the math joke, I just thought with all these numbers flying around…and, by the way, the fact that your funds has been frozen is very scary, and also totally sucks. I’m sorry.
All I can say is that I really hope you’ll get your money sometime soon. Good luck.
I’m sorry about all that is going on. It looks like a lot of countries’ markets are taking or took a beating today. I don’t understand why it takes a financial crisis for leaders to open their eyes and recognize that there’s a “problem.”
Anyway, I couldn’t think of a good joke, but this was a recent (true) story a relative sent me that cracked me up :
http://www.wral.com/golo/blogpost/3489737/
One that I like a lot … :
It’s Michelangelo painting the Sistine Chapel …
The Pope Julius II goes thru , look at the ceiling and says ‘I said green’ ….
Better ??
Okay, this is bad but I made it up on the flight home from Iceland:
Did you hear about that Jewish family living in Reykjavik? The Icebergs.
You can believe me, that I am very glad, not to have any money stuck in any fonds. A few ten thousand in pension funds, which I don’t want to loose, but even if this happens, this is no personal catastrophy for me. No jokes so far – sorry.
I still have money in the “Fund 9″ can someone please tell me what’s going on and what percent I am going to lose? Is it guaranteed by the government or not? I have heard that 70% of the funds holding were made up of instruments issued by the 3 big failed banks. Any ideas about what I am supposed to do now?