30-Mar-2016: Liquidators' Update, see Deloitte site

Thinking the unthinkable

The unthinkable had happened on both sides of the Atlantic. One of Wall Street’s biggest banks had been allowed to fail and, in Britain, the Treasury had nationalised Bradford & Bingley to prevent a run across the financial sector.

Against this backdrop, Alistair Darling and his Treasury officials were desperate to identify which bank might fail next. And so tiny Iceland became the new focus of the Chancellor, the Bank of England and an array of civil servants in Whitehall.

At stake was £3 billion of British investors’ money that had been sunk into the overheated and teetering Icelandic economy. Far from an esoteric investment target of City professionals, Mr Darling was faced with the prospect of local authority pension funds, charities and NHS retirement schemes bearing substantial losses. . .

Only weeks ago, Paul Tucker, the Deputy Governor of the Bank of England, pointed out to MPs the utmost importance of having a state-funded deposit guarantee scheme that paid out within weeks of a lender’s failure.  19-Feb-10.