According to a new book on the banking collapse in Iceland by former editor of Morgunbladid Styrmir Gunnarsson, Umsátrid – fall Íslands og endurreisn, the British Financial Supervisory Authority had threatened to stop Landsbanki’s operations in the UK in August 2008 if the Icesave deposits weren’t transferred into a British subsidiary.

In an effort to keep their operations in the UK going, Landsbanki’s executives requested a loan from the Central Bank of Iceland of GBP 2.5 billion (USD 4.2 billion, EUR 2.8 billion) . . .

Former Minister of Business Affairs Björgvin G. Sigurdsson has confirmed Gunnarsson’s story. He said he had discussed the matter with his British counterpart in early September and at that time a solution seemed to be in sight. 18-Nov-09.

http://www.icelandreview.com/icelandreview/daily_news/?cat_id=21123&ew_0_a_id=352154