Charities should be compensated for losses they incurred in the collapse of Iceland’s banking sector — but consumers should not be helped, an influential group of MPs has recommended.

The Commons Treasury Select Committee said the government should compensate charitable organisations, but that it shouldn’t fall on the taxpayer to repay losses that citizens and local authorities incurred when Isle of Man and Guernsey subsidiaries of the Icelandic banks went under.

An action group set up to lobby for compensation for those who lost millions of pounds when the Guernsey arm of Landsbanki collapsed last October reacted angrily at the ruling. 05-Apr-09.

http://www.timesonline.co.uk/tol/money/investment/article6035107.ece