Iceland was set up for this by the creation of toxic derivatives by U.K. and Netherlands banks and sold to Icesave for the explicit purpose of hostile takeover. Let the Queens eat cake! Better yet, let them eat derivatives!

And I also would like to give my condolences — you and Landsbanki Guernsey short and longer term depositer were most unfairily of all hit in my opinion in this whole post October 8th 2008 horror.

The time line of this that was taken advantage of by UK Treasury in case of KSF IOM is this :
http://www.icenews.is/index.php/2009/11/23/kaupthing-employee-accused-of-stealing-millions/#comment-102924

( It is good that at least you now are getting back some of the money that was taken and is in the bank accounts in UK of the taken by Darling and Brown Kauthpgin Singer and Friedlander. )

A lot more people, than just Kaupthing shareholders lost significant part (or all) of their savings in Iceland. But I do not think it serves any purpose trying to debate which people lost “most”. Every person that lost money in the crash, suffers deeply as a consequence, and most of them are completely innocent victims.

Basically, the depositors of KIoM fell through the cracks between the three countries, and got screwed. The bulk of its money was transferred to KSFUK before the crash and got stuck there, when the British government closed the bank down on October 8th. This resulted in the immediate collapse of Kaupthing worldwide, including the parent bank in Iceland. The so called “parent” guarantee by Kaupthing in Iceland is therefore mostly useless, as the parent bank itself is bankrupt.

I do not have any detailed knowledge of exactly how strong the claim is from KIoM to the bankruptcy proceedings of KSF and Kaupthing, but I would assume its being treated as an unsecured claim according to the bankruptcy laws of each respective country.

In any case, you have my deepest sympathy for your suffering, and I hope in the end you will be able to recover most of your savings.

http://news.bbc.co.uk/2/hi/europe/8438178.stm

I wonder how big a petition (even without fraud) the UK could raise when its reported that Icelandic people expect the UK taxpayer to bail out the Icelandic banks and banking system.

You may be aggrieved at the injustice of bailing out a bank (I agree with you…) but think what it like for us (UK citizens who equally hate Gordon Brown and Chancellor Darling) who end up with nothing, totally fully robbed victims – any of us are too old or homeless now to wait for 10 years (projected forecast) to only get a percentage of our money back. Those greedy bastard bank directors have ruined thousands of lives (it is not justice for them to only get 8 months in jail – where is the pay back?) and there are 10,000 of us – victims from Kaupthing Isle of Man! Please spare a thought for our suffering too we haven’t just lost 12000 Euros but everything for over a year ( last Christmas a time of year I love was emotional hell), and we are still now made to suffer for 10 years. Where is the justice from the New Kaupthing, Iceland AND Britain?

>>>>Is there any constitutional direction saying which of those two he should focus on: ie what’s best for the country or what the people want?

Not really, in fact the text is relatively short:

“26. gr. Ef Alþingi hefur samþykkt lagafrumvarp, skal það lagt fyrir forseta lýðveldisins til staðfestingar eigi síðar en tveim vikum eftir að það var samþykkt, og veitir staðfestingin því lagagildi. Nú synjar forseti lagafrumvarpi staðfestingar, og fær það þó engu að síður lagagildi, en leggja skal það þá svo fljótt sem kostur er undir atkvæði allra kosningarbærra manna í landinu til samþykktar eða synjunar með leynilegri atkvæðagreiðslu. Lögin falla úr gildi, ef samþykkis er synjað, en ella halda þau gildi sínu.”

http://www.stjornarskra.is/Itarefni/

Basically it says that laws passed by Althingi have to be submitted to the President within 2 weeks for his signature to be ratified. If he declines to sign, the laws still become valid, but they will have to be voted on in a national referendum as soon as possible. If they are voted down in the referendum, the laws are voided.

There is nothing mentioned in the constitution as to what the President should take into account when making the decision. When the President refused to sign the media laws few years ago, he specifically said it was to avoid a “rift” between the parliament and the population.

Only the names of people that were 18 years or older and could be matched along with the national id (kennitala) in the national registry (þjóðskrá) were included.

http://www.mbl.is/mm/frettir/innlent/2010/01/02/4_stjornarthingmenn_skrifudu_undir/

Thank you!