“During the collapse of the Landsbanki bank in October 2008, the Chancellor of the Exchequer took steps to safeguard the deposits of UK investors. The Report notes that his comments regarding the intentions of the Icelandic Authorities had a serious impact on the confidence held in the remaining solvent Icelandic bank. (…)

The use of the Anti-Terrorism, Crime and Security Act 2001 however, clearly had considerable implications for the Icelandic authorities in their efforts to maintain a functioning financial system. The use of this Act inevitably stigmatises those subject to it and a less blunt instrument would be more appropriate. The Report expresses concern that no appropriate legislation is available and calls on the Treasury to address this matter.”
(…)
“Although the Icelandic banking system was vulnerable to the crisis that has affected the international financial system since 2007, the actions of the UK government in making statements on the capacity and willingness of the Icelandic government to provide assistance to non-Icelandic citizens, whether or not such statements were accurate, turned the UK government from being a seemingly passive observer of events, to an active participant in the market.”

Darling said today that he was continuing to press for compensation for British savers.

“Now we’re working with Icelandic government and the IMF, who are porbably going to have to help the Icelandic government, but one of the conditions that I want, is that British depositors’ position is safeguarded,” he said.

this IMF deal will most likely fall apart in the next few days

The long-term perspective of Iceland is excellent – you’ve got vast and very interesting resources (which might be the reason why Russia is interested in you). Also, your country is incredible beautiful and you’ve got a friendly people – people will continue to flock to Iceland to spend their holidays in your country.

http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article5005572.ece

Peter Germany, every one here are thankful to the Germans for their patience and help, its good to see that the whole world isnt trying to kill us , only the British,
the Duch have taken action, it is a combination of smart moves and co operation, it will work in everybodys best interests

Dave , im sorry about your savings, i had shares in Landsbanki and Glitnir and lost my money 100%
im not crying over that, your not the only one affected by this, at least sooner or later you will get some or all your money back,
a lot of people are loosing there jobs and there lives are ruined.

It does add serious credibility to the suggestion that Iceland is trying to deflect attention away from its own problems and has found easy targets in the US & UK.

Would it really help with we publically apologised for use terrorist law – let’s get real – I don’t think it would the slightest difference Iceland would find something else to complain about.

It is probably fair to say the British haven’t helped but stop deflecting attention and start taking some responsibility.

http://www.bafin.de/cln_116/nn_720486/SharedDocs/Mitteilungen/EN/2008/pm__081010__kaupthing__en.html?__nnn=true

BaFin orders moratorium on Kaupthing Bank hf., German branch

On 9 October 2008, the Federal Financial Supervisory Authority (BaFin) issued a stoppage of disposals and payments for the German branch of Kaupthing Bank hf. BaFin also prohibited the branch from receiving payments not intended for payment of debts towards it (“moratorium”).

As the reason for the moratorium, BaFin stated that it had to be ordered to secure the branch’s still remaining assets. The parent company, Kaupthing hf., Iceland, was unable to continue providing the branch with sufficient liquidity. On the evening of 8 October, the Icelandic parent company had already blocked access to the online accounts of its branch in Germany after having been placed under the control of Iceland’s financial supervisory authority.

Kaupthing Bank hf., German branch, currently has roughly 30,800 customers and deposit liabilities amounting to 308 million euros.

Although the branch, as an EEA establishment within the meaning of section 53b (1) German Banking Act (Kreditwesengesetz – KWG), is subject to Icelandic solvency supervision, BaFin nevertheless could order the moratorium according to section 46 KWG because there was the risk of the branch no longer being able to meet its obligations towards its creditors.

The BaFin measures are immediately executable but not yet final.
Bonn/Frankfurt a.M., den
2008.10.10