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


This page contains brief summaries of and links to media reports that the site editors have selected as the most important or relevant.

Police raid accountant offices in Iceland

REYKJAVIK, Iceland, Oct. 2 (UPI) -- Police raided two accounting offices in Reykjavik, Iceland, to find evidence of criminal action concerning bank collapses, a special investigator said.

The office of special investigator Olafur Thor Hauksson said 22 police officers and six accountants raided the PricewaterhouseCoopers and KPMG offices, seeking evidence connected to the failures of Kaupthing, Glitnir and Landsbanki, all of which collapsed in 2008 as the global financial crisis began to unfold.

"The purpose of the searches was to look for and secure evidence related to the investigation of several charges," the investigator's office said in a statement. 02-Oct-09.

BBC Interviews Jersey LGDAG Representative Eleanor Monaghan (Audio Clip)

Eleanor Monaghan, Jersey LGDAG representative was interviewed by BBC Radio today, regarding the Administrator of Landsbanki Guernsey's proposed legal action to challenge the inequitable treatment of LG depositors as compared to those who saved with IceSave in the UK and Netherlands, which renders the former as ordinary creditors while the latter have been defined as preferential creditors due to those Governments' intervention.

The clip can be found via the link below and when the player page opens, click on the play button, then again on the timer bar at just after  1 hour 11 minutes (nearly in the middle of the bar) to find Eleanor's excellent interview.  18-Sep-09.

Landsbanki Guernsey to take legal action against Iceland

The administrators of Landsbanki Guernsey will take their case to Iceland's courts should they be unsuccessful in their efforts to maximise returns for depositors caught up in the bank’s collapse last year. . .

The move followed a vote in which what Deloitte said was an overwhelming majority of depositor creditors voted in favour of such action. . .

“Having seen depositors in IceSave being bailed out by UK and Dutch governments, [the depositors and administrators] are naturally aggrieved, and are further aggravated by seeing those governments now being prioritised over them,” Deloitte said in a statement.  International Adviser website - 16-Sep-09.


See Also: Guernsey Press website - 'Court says liquidators can sue Icelandic government'

Iceland's customers still out in the cold

A look at why savers with Landsbanki in Guernsey believe they have been short changed

The cheques are in the post for the estimated 2,000 savers with Landsbanki (Guernsey), but customers of the failed Icelandic bank's Channel Islands operation remain highly dissatisfied with the way the situation has been handled. . .

Creditors of the bank voted overwhelmingly this summer to take action against the Icelandic government, as revelations about the country's banking crisis continued to make headlines. The Landsbanki Guernsey Depositors' Action Group (LGDAG) in Guernsey maintains that the island government has done little to protect the interests of savers.

In particular, they claim that government departments and ministers did not do enough to press their cause with the UK and Icelandic governments. Guernsey introduced a Bank Deposit Compensation Scheme in November 2008, shortly after the Landsbanki failure, but this was too late to include Landsbanki (Guernsey) savers.  03-Sep-09.


Iceland to pay back Icesave cash

The Icelandic parliament has voted in favour of repaying more than $5bn (£3bn) to the governments of the UK and the Netherlands.

The so-called Icesave bill will reimburse funds paid by the governments to compensate those who lost money in the Icelandic online bank Icesave. . .

The deal was agreed in June, but was only passed after an amendment was added setting various limits to the payments.. .

In a statement, the UK Treasury said, "As you would expect, the UK will look carefully at any conditions placed upon the loan to ensure that they are reasonable".  28-Aug-09.

SFO goes to Iceland to investigate banking collapse

The Serious Fraud Office is to meet with Icelandic investigators next month to discover whether there was any criminal wrongdoing in the collapse of Iceland's banking sector last year.

According to Financial Adviser's sister paper, the Financial Times, Richard Alderman, director of the SFO, is set to hold talks in London with Eva Joly, the French anti-corruption expert has been hired to assist the Icelandic investigation. . .

Zac Ghadially, associate financial adviser of London-based IFA Yellowtail Financial Planning, said: "The Serious Fraud Office does not have a great track record of doing anything so I am not sure what it will achieve in this investigation."  FT Adviser website - 20-Aug-09.

FSA needs a shred more than hand wringing over Iceland's banking implosion

Sir Fred Goodwin is hardly beloved of the British public. But imagine just for a second how we would feel if the former RBS boss had been dishing out loans of £1bn plus to himself, his mates and their companies. People might want to chop off more than his pension.

Now picture a fictional scenario where there were senior staff at RBS, with very little prior experience in banking, who had been throwing around interest-free loans to related parties to buy shares in the bank itself that were written off when it collapsed. What if the Government was unable to bail it out, triggering defaults that spanned across the globe? Then there might be rumours swirling round about HBOS, Bradford and Bingley and Northern Rock, sparking fears that the whole British banking system was based on hot air and money plucked out of nowhere.  Rowena  Mason Blog - Telegraph Blogs - 18-Aug-09.

Icesave Bill Approved by Iceland’s Economic Committee

The government’s bill on state guarantee in relation to the agreement with British and Dutch authorities on Iceland compensating Landsbanki’s Icesave depositors was approved with disclaimers by the Althingi parliament’s Economic and Tax committee on Saturday night.

All parties except for the Progressive Party, which will submit a special evaluation, supported the bill. It will probably be up for a second round of discussions at Althingi tomorrow, Fréttabladid reports.  17-Aug-09.


Iceland: what ugly secrets are waiting to be exposed in the meltdown?

Almost a year since the collapse of the Icelandic banks, the rotten nature of these financial corpses is slowly beginning to emerge.

It has now become clear that this was no ordinary crash. . . . Eva Joly, the French-Norwegian MEP and fraud expert hired by Iceland and now working with the [UK] Serious Fraud Office, now believes it will be "the largest investigation in history of an economic and banking bank collapse". . . .

But among the worst affected by the crisis are 10,000 savers with £840m tied up in Kaupthing in the Isle of Man and 2,000 savers with £117m in Landsbanki in Guernsey. All lost their entire savings with no compensation and are still waiting in line with a queue of commercial creditors.  15-Aug-09.

Gordon Brown is wrong, Britain played a part in Icelandic bank collapse

Iceland, a small nation with just 320,000 inhabitants, is reeling under the weight of billions of euros of debt, which has absolutely nothing to do with the vast majority of its population and which it cannot afford to pay . . .

But British Prime Minister Gordon Brown is wrong when he says that he and his government have no responsibility in the matter. First, he has a moral responsibility, having been one of the main proponents of this model which we can now see has gone up the spout. Second, he cannot say that the UK had neither the means nor the legitimacy to supervise Icesave's activities. By Eva Joly on the Telegraph Mobile website, 15-Aug-09.


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