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PM must come to the aid of Presbyterian savers, says first minister
Tuesday, 16 June 2009
The prime minister must end the uncertainty surrounding the ill-fated Presbyterian Mutual Society (PMS) and make clear whether he intends to help the savers who face losing millions, the first minister has said.
Peter Robinson again called on Gordon Brown to offer the 10,000 people hit when the PMS collapsed last year the same deposit protections given to other investors caught up in the financial crisis.
While the government guaranteed deposits up to £50,000 in banks battered in the global meltdown, it made no such undertaking to the PMS because it was not regulated by the Financial Services Authority (FSA) and that those who put money into it were essentially ‘investors’ and not ‘savers’.
Mr Robinson rejected that distinction as he addressed the Stormont assembly ahead of his and Deputy First Minister Martin McGuinness’s crunch meeting with Mr Brown on the issue on Wednesday.
“I don’t accept the distinction that he makes, certainly it wasn’t the mindset of anybody who deposited funds in the Presbyterian Mutual Society that they were somehow speculators hoping to make a quick pound on the issue.They were in every sense savers,” the DUP leader said.
Earlier this month the government indicated some assistance might be offered to PMS investors when Northern Ireland Secretary of State Shaun Woodward said he was prepared to “break the bureaucracy” to help them.
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PMS savers were not and are not covered by the Financial Services Compensation Scheme - fact. Mr Robinson rejects (DUP says No -what a surprise!) the distinction between savers in banks/building societies and investors in PMS. He should go to Specsavers.
Perhaps the government would like to compensate everyone for the losses they've made on investments due to the financial crisis? I think not.
Posted by Steve Laird | 17.06.09, 10:35 GMT
So people put money into a fund that wasn't regulated? it seems that legally they are defined as investors and therefore not covered by the FSA....did they check this before they invested? did they check where their money was investoed for their returns?why should they be bailed out? accept responsibility for your own losses like the rest of us have to.
Posted by Malachy Mulligan | 16.06.09, 17:06 GMT
Maybe the PMS investors than banked their profits and got out early causing the scheme to collapse should do the "Christian" thing and offer their profits to those that weren't as quick off the mark.
Maybe the church should sell some of its assets to recompense investors.
Why should the tax payer, i.e. every man woman and child, bail out speculators and investors?!?!
Posted by Bren | 16.06.09, 16:30 GMT
Where does it all end? When will people take responsibility for their own financial decisions?!?
In the recent southern elections we had Sinn Fein saying that anyone who took out a fixed rate mortgage should be compensated for changing back to variable. If rates had continued to go up they would have been the first people sticking it in your face for being variable, likewise if the PMS had made all its "investors" a fortune no more would have been heard about it!
Posted by Bren | 16.06.09, 16:28 GMT
Don't give them a cent. Let the church sort this problem out, or maybe Mr Robinson could donate money from his own personal fortune. I have no sympathy what so ever.
Posted by William | 16.06.09, 13:56 GMT
PM cant even come to the aid of the country never mind for the church.
Posted by Olga Gertowits | 16.06.09, 13:38 GMT
Precisely McD. They knew the rules, so why all the outcry now. It's only because the 'christian' label is being used for preferential treatment.
Posted by Mike | 16.06.09, 13:19 GMT
Question : If "They were in every sense savers", why not just put it in a normal bank where their money would have been safe?
Answer : Because they weren't, they were gamblers, and they lost their money.
Posted by McD | 16.06.09, 12:55 GMT
There has been an abject failure by the legislative authority, be it Westminster or be it Stormont, in not having in place good regulatory governance in fiscal and monetary matters generally.
Stop this political blame game and stop it NOW!
Presbyterian Mutual Society depositors are entitled to have the breach of trust to which they are presently subjected remedied and remedied NOW.
Don McClay,
Trustee, The Howie Christian Charitable Trust
Posted by A Don McClay | 16.06.09, 11:58 GMT
If it were any other group of people other that Presbyterian christians, I doubt if the First Minister would be getting so worked up! Just shows how biased this NI assembly is.
Posted by Mike | 16.06.09, 09:02 GMT
No, No, No. I do not want my taxes used to bail out the PMS investors. They knew the risks but decided to put their money in this exclusive little club. Why should the tax payer bail them out? The rules for a mutual society are different than for banks. Why are we getting the 'innocent good christian' card being played yet again. These people made conscious decisions on how to invest their money. Now that it's gone wrong I fail to see how that is the tax payer that must pay.
Posted by Mike | 16.06.09, 09:00 GMT