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

This is Money

This page contains brief summaries of and links to media reports from the source This is Money.

Iceland deal may be put to vote

Icelanders may demand another referendum before agreeing to pay the £2.2bn owed to Britain after the collapse of Landsbanki's UK retail bank Icesave.

The latest deal, under which Reykjavik will repay the sum plus interest at 3.2%, is regarded as far better than the previous scheme, which set the rate at 5.5%.

Johannes Skulason, a senior figure in the InDefence campaign that opposed the last deal, said many Icelanders were still sceptical.

'People are trying to work out what this will cost our country and at the moment the view is still mainly pretty negative,' he said.  19-Dec-10.


Let down by the watchdogs

The doorstopping official report into the collapse of Iceland's banking system may not make for entirely comfortable reading for the Governor of the Bank of England, Mervyn King, or the Financial Services Authority.

In the Spring of 2008 the Icelandic central bank - the Sedlabanki - made a request to the Bank of England for a currency swap agreement after Iceland had failed to renew a credit line with the Basle-based Bank for International Settlements (BIS).

Mervyn King sensibly refused - after all, Icelandic bank liabilities were five times the size of the nation's economy - and offered some help in reducing the size of Iceland's banking sector.

What happened next is unclear. But we know that between the spring and autumn of 2008, when the Icelandic banks collapsed like dominos, savers' money continued to pour into Icesave and other Icelandic deposit accounts.

The missing piece in this puzzle is what the Bank of England decided to do with its assessment of the Icelandic banks when it refused help. One trusts it informed the other tripartite members - the Treasury and the FSA - which should have been far stronger in warning depositors of the risk.  12-Apr-10.

Britons 'in the frame' after SFO probes Icelandic banks fiasco

Serious Fraud Office investigators are flying home this weekend after sifting the wreckage of Iceland's financial system for evidence against UK firms and individuals.

It is understood the threestrong team have uncovered evidence that might lead to charges against former British clients of Iceland's collapsed banks. 'They made good progress,' said the SFO. 'Some very interesting information came out of their discussions with our Icelandic colleagues.'  18-Oct-09.

Treasury fears over Icelandic bank debt

Britain has asked Iceland to spell out how it will repay the £2.3bn it cost to bail out UK savers amid concerns that a future Reykjavik government could seek to write off part of the debt. . .

The Government is seeking a guarantee from Reykjavik that 2024 will not mark a deadline on payments and that all the cash will be paid.

At the time of the collapse, with Iceland on the brink of economic meltdown, the UK and Dutch governments used their own money to compensate savers.  19-Sep-09.

Offshore savers helped, but some left stranded

Around three-quarters of the savers who put their money into the offshore arm of Icelandic banks are to get their cash back.

Some 10,000 savers with Kaupthing Singer & Friedlander Isle of Man (KSFIOM) have been told that the bank has been granted a Scheme of Arrangement by the Isle of Man court, saving it from liquidation. . .

. . . The Isle of Man government has agreed to contribute up to £180m towards compensating depositors.

However, the 2,003 savers with Landsbanki Guernsey, which went into administration on October 7, 2008, are not so lucky. So far, they have received a payment of 30p in the pound. Savers who had accounts with the UK arms of Landsbanki and Kaupthing were compensated in full. 15-Apr-09.

Icelandic banks had seven-month warning

celand's top bankers and politicians were warned that the country's banking system could go bust seven months before it was engulfed in crisis.

Iceland's central bank was even told that October was likely to be the month when it would happen. 01-Mar-09.

Savings compensation: No repeat of Icesave

The compensation measures used by foreign banks operating in the UK will be the subject of a EU-wide review to avoid a repeat of the Icesave fiasco, the Chancellor announced in his pre-budget report yesterday.

The Government was forced to step in to guarantee the savings of approximately 240,000 savers with online savings account Icesave after its Icelandic parent collapsed.

It also had to arrange the transfer of savings accounts with its failed peer, Kaupthing Edge, to Dutch bank ING.  25-Nov-08.

Landsbanki Guernsey savers cry foul

Thousands of customers of Landsbanki's Guernsey subsidiary, who have lost the majority of their life savings, are crying foul over the alleged use of their funds to compensate other customers of the failed Icelandic bank. 21-Oct-08.

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