Posted on14 May 2009.
Iceland’s ambassador to the UK, Sverrir Haukur Gunnlaugsson, sent a letter to every British Member of Parliament last week explaining his Foreign Minister’s opinion of the ongoing diplomatic issues between the two countries.
The freezing order still being imposed on Landsbanki comes in for criticism in the letter – but the ambassador also mentions recent positive developments.
The letter can be sen here: http://mbl.is/media/99/1499.pdf
No Motörhead wine for Icelanders, branding too negative
Reykjavík Winter Lights Festival begins today
Multiple shooting in Greenland hamlet
IMF refutes claim it tried to shut Icelandic national theatre and museum
Iceland central bank holds rates, predicts ongoing economic growth
Continued Malmö violence embarrasses police
Currency exchange privacy case thrown out of Icelandic court
Sauli Niinistö wins Finland presidential race
Iceland historic French village restoration finance secured
Murder in Hafnarfjörður
This money is UK’s money. What Iceland has to do with this at all?
Lol – what is the Icelandic word for grovel?
skríða; knékrjúpa (from the dictionary)
What happened at Kaupthing?
When will we know?
Who lost all the money? Who are the individuals responsible? They re talking about the London bank losing half its deposits. How?
Hi Steveservaes,
What happen at Kaupthing is simply a reflection of what has happened in Icelandic society on a wider sphere. Icelandic society places a great deal of value on togetherness and being connected. So the owners and investment bankers were involved in a national Ponzi scheme that benefited elite citizens down to the person in the street – same with the other banks, but all such schemes come to an end. People who asked questions about this scheme were pushed to the outside of the” togetherness and being connected” realm, and in Iceland that’s not a place you want to be – given the small size of the national community.
When will we know what happened and individual culprits? That’s an interesting question. Icelandic politicians from all parties already have a fairly good idea of what happened, but in terms of issuing individual blame that seems to be a “slippery slope” of sorts – as even the politician had their hands in the honey pot, too.
So it’s bit like after World War II ended in Germany, the Germans realized they had been lead to disaster by a guy called Hilter. But Hitler could never have done World War II alone, he need a lot of help from a lot of people. And most people say they never knew what the guy was up to in th first place. It’s the same in Iceland – wide spread memory loss when it comes to culprits, not a surprise, as the nation helped them along without much of a word otherwise.
The capital will never be recovered, it’s been looted and found it’s way to offshore accounts and lavish homes in UK, USA, and Norway. Good old fashion capitalism.
As for the London bank losing half its deposits – will have to do more research on that one. Can you be more specific?
I wonder if those UK MPs will find time to read that letter. Aren’t they all too busy justifying their expense claims?…
Perhaps steveservaes was referring to this? I couldn’t find anything on the actual state of KSFUK.
http://www.citywire.co.uk/adviser/-/news/adviser-news/content.aspx?ID=338520
@steveservaes. The Economic Disaster Area has a lot of good stuff on the dodgy business practices where companies were sold between related parties to massively inflate their book value. i.e.
http://www.economicdisasterarea.com/?p=1676
But, basically, Kaupthing was run as a private piggy bank.
http://www.economicdisasterarea.com/?p=1305
?’s post and an article by Paul Nathan explain how this was possible.
http://www.economicdisasterarea.com/?p=964
I forgot, the administrator’s April report on KSFUK. Not that it’s a particularily interesting read, but it does provisionally confirm the 50% figure (as a minimum).
http://www.kaupthingsingers.co.uk/lisalib/getfile.aspx?itemid=20165
We in KSF Isle of Man are told the UK bank will probably pay about 50p in the pound to its creditors.
If it is 50%, how big a hole does that leave Steve? Are KSFIOM looking at >70% recovery?
Tomorrow (16 May 2009) there is going to be held Intercultural Day in Reykjavik, The program is here:
http://www.ahus.is/index.php?lang=en
And one of the sponsors in … Landsbanki, as can seen here:
http://www.ahus.is/images/stories/fjolmenningarhatid.jpg
So, Landsbanki has still more money to give away. And you can still claim there is crisis in Iceland?
:)
Landsbanki is different situation from Kautphing. But you know its UK assets money are there sitting in accounts and that and the interest is benefitting UK now.
>Not that it’s a particularily interesting read
Well actually it is because it show that there was not this huge malfeasance going on at Kuapthing Singer Friedlander at all.
What it show is that it is making loans out like a private bank as well as to companies.
>What happen at Kaupthing is simply a reflection of what has happened in Icelandic society on a wider sphere.
Always I read question ? posts with interest because he sound so much like an EU burecrat that I think it is Percy posting.
What you mean is it reflects the whole world of banking in the last 10 years or so after the dot com bubble burst.
As to general thrust of this thread, you do know what this fractional reserve banking is dont you? You are not that ignorant I hope.
Banks take deposit or money borrowed from other bank, and loan it out to others.
Problem of last period of history is ridicilous low interest rates from the major issuers of government money ( USD, Japan, EUR, GBP ) so this bankers went into property or other asset to get they returns.
Kaupthing bankers did not act reckless like others. They took risks but they were not in the class of other bankers. No toxic stuff at all. They was never as reckless as UBS for example that paragon of banking respectibility.
What they and other Icelandic bank did do that was wrong was loan too much money to Jón Ásgeir companies so he could pay too much for some of his UK companies on high street.
I notice no one criticising mainly UK shareholdrs of those companies that pocketed that money from the Icelander that paid too much for those companies.
steveservaes as was discuss in previous threads all over, and one in particular you post to+ is the at best panicing way that Brown and Darling told FSA to take over KSF.
Does it not smell to you that they made sure of the GBP 550 million of that “Tax Haven in the Irish” money of yours was nicely inside FSK before they took it?
KSF should not have been put down under Northern Rock Act. Judicial review that has been granted will show that Darling at best paniced and at worst well,..
And just before that loan money bank wire was coming from Icelandic governemtn and elsewhere to keep KSF able to keep up its obligations.
+http://www.icenews.is/index.php/2009/04/20/all-kaupthing-edge-deposits-in-germany-to-be-repaid/
But the ironic thing is that yes, steveservaes, if KSF IOM money was not in “safe hands” of FSK and the UK FSA then you and the thousands other UK depositors in KSF IOM would still have they money.
As then the Kauthing hf guarantee would not be needed and most likely you would get back your money already from Kaupthing hf if it had been there.
Because that is what is happening to other subsidiary as shows in Germany.
As to honesty of Icelandic political and business culture, as other poster have said, really those with they UK politicians ( but mainly highly corrupt and totalitarian Labour party ) should not try and throw stones as they live in far worse constructed greenhouse now thanks to the 12 years of Mr Brown.
Yes Iceland has its troubles with closely connected politicians and businessmen but can UK citizens really have moral authority to point the finger given what they have let happen?
Just looking in a small way at this corruption, in Kaupthing case why is it that Dave Whelan and Stockcube Plc get they millions of money paid bad at request of UK government but not KSF IOM and its UK citizens?
>So it’s bit like after World War II ended in Germany, the Germans realized they >had been lead to disaster by a guy called Hilter. But Hitler could never have >done World War II alone, he need a lot of help from a lot of people. And most >people say they never knew what the guy was up to in th first place. It’s the >same in Iceland – wide spread memory loss when it comes to culprits, not a >surprise, as the nation helped them along without much of a word otherwise.
You always know when some one desperate in arguement because up comes Nazis and Hitler.
Yes it is true that the nation of the Germans allowed and went along with Hitler but that is primarily because of the culture of the Germans which is to unquestioningly obey authority.
You cannot accuse Icelander of this way of thinking. The culture here is so far away from that even more individuallist than the English culture despite you assertions to the contrary this nonsense about “togetherness and being connected”.
Of course people deal with those they know. But in no way is that the culture of Iceland.
What instead we have had to stop us from figuring out who is good and who bad the individuals responsible for trouble is a lot of media concentration in last years so main streem media is owned by a few.
Of course now Icelanders are seeking answers for themselve from doing own reseearch which include all documents on Internet. Because you cant trust politicans. I dont care where you live, politicans as our “representatives” are biggest problem all people have these days here on this planet earth.
As to other quesiton it is becoming more clear that Jón Ásgeir and bankers that lent him money has a lot lot to answer for ( it is he that has a lot of control over the media in Iceland in last years ).
He is not the only one but as facts come out he does seem to be one with most to answer for.
>The capital will never be recovered, it’s been looted and found it’s way to >offshore accounts and lavish homes in UK, USA, and Norway. Good old >fashion capitalism.
The facts about assets of banks simply do not support this at all.
Where a lot of the money is are as *loans* with the Icelandic people at large, but most of it is actually going to people in the UK who have businesses there, or got they monies lent in UK as business center of this part of the world.
No of course that business center is destroyed by actions of Brown and Darling in attacking Iceland how he did —
and of course far more serious by his ridicukous spending of future British tax payer moneys like a drunken sailor on amphetemines which undermine the whole of the country of the UK not just The City.
12 points from me, Fisy :-)
But some still believe they are “lesser evil”….
lol i think brown is sinking iceland is his only target we are to small for any notice to be taken of any protest we make
i am studying in the UK and none of my fellow students ( english ones ) have any time for darling (proberbly he is sinking from his expense claims ) and brown needs any target to take the focus of off his peoblems
U NO IT IS NOT CAPILAIISM THAT DID THIS IT IS PURE GREED !!!!!! WHAT? SHOULD THE GOVERNMENT CONTROL THE WORLD MONEY? I DONT THINK SO !! EVERYONE WOULD BE IN POVERTY LOOK AT RUSSIA ??????
I hope that the relation between these two country will be better than previous. I am keeping my fingers crossed.