Comments on: 1.5% voted ‘yes’ in Icesave referendum

By: smokeless

smokeless — Thu, 30 Sep 2010 19:21:55 +0000

This is a lesson to those in power, you cannot guarantee to bail people out every time they make a bad decision. Sometimes yes, all the time no.

Of course the Brits not only did it but then have tried to con the Icelandic taxpayers to pay the UK government’s bill so just don’t pay it at all..

By: Bromley86

Bromley86 — Sun, 14 Mar 2010 09:50:13 +0000

bezoeker
It doesnt work that way bromley, you have to pay out in a legal currency equivalent to 20,887 Euro.

Are you sure about that? When I last looked at 94/19/EC to check, it looked to me like it said 20,000 ECU and made no mention of anything else. So the EU regs appear to require euros (but not legal currency of the host state).

Anyway, my point was that the Icelandic law on deposit guarantees talks of a compensation limit of ISK 1.7m. But it also says that that amount is linked to the euro exchange rate back in 1999 (which gives 20,887 euros). What I couldn’t see is who this linked euro exchange rate would apply to, so I assumed that there was no reason why it wouldn’t apply to Icelanders as well as foreigners.

http://eng.idnadarraduneyti.is/laws-and-regulations/nr/1165

By: bezoeker83

bezoeker83 — Sat, 13 Mar 2010 21:54:37 +0000

>>>>>>>>Actually, interestingly enough, I think that if the TIF had compensated Icelandic and foreign depositors equally then those Icelanders would have been entitled to their 1.7m ISK at a fixed euro exchange rate to give them 20,887 euros.

I imagine that would have been a preferable situation for many, if you ignore the chaos that would arise from the closure of all three banks<<<<<<<<<

It doesnt work that way bromley, you have to pay out in a legal currency equivalent to 20,887 Euro. And ISK isnt a legal currency in the NL or the UK where the accounts are located, there you have to pay out in Euro's or Pounds respectively. That would be equal treatment.
And i also would fail to see how annyone appart from the icelandic side of the argument would prefer beeing payed out in what is monopoly money outside of iceland. Especially concidering the Icelandic goverment can print unlimeted amounts of it.

By: Bromley86

Bromley86 — Sat, 13 Mar 2010 11:19:26 +0000

If only the foreign residents who deposited money in a foreign branch of Landsbanki were subject to exactly the same treatment as the Iceland depositers::)

Actually, interestingly enough, I think that if the TIF had compensated Icelandic and foreign depositors equally then those Icelanders would have been entitled to their 1.7m ISK at a fixed euro exchange rate to give them 20,887 euros.

I imagine that would have been a preferable situation for many, if you ignore the chaos that would arise from the closure of all three banks.

By: Niels

Niels — Sat, 13 Mar 2010 11:06:30 +0000

Knowless,
Half your money disappeared because Iceland, unlike the EU countries, had a completely unsustainable banking system.
While icelandic depositors got back at least part of their deposits foreigners got nothing so juridically they seem to have a point when they complain about discrimination based on nationality.
Dutch depositors in Icesave who had more than 100k in Icesave got no compensation for the amount over 100k and they filed a lawsuit against Iceland at the european court.
While I do not sympathize with them they seem to have a point and when they win the case a new icesave dispute seems likely.

By: Andrew

Andrew — Sat, 13 Mar 2010 05:34:12 +0000

“if only the foreign residents who deposited money in a foreign branch of Landsbanki were subject to exactly the same treatment as the Iceland depositers::)”

Don’t you really mean, I wish our government had treated us better? Like the British government treated their nationals who had deposited in Icesave for example?

One of the points of the European banking laws is that everyone, no matter where they bank, and which country they reside in, should be treated the same. The deposit insurance is supposed to prevent this from happening for accounts with deposits of up to 20,000 (approximately) Euros.

By: Knowless

Knowless — Fri, 12 Mar 2010 17:16:41 +0000

Andrew says: “They were depositors who thought that they were protected by a deposit insurance scheme. Under european banking regulations, nationality is not grounds for discrimination in treatment of the depositors. I assume all your money is safe in your bank. How would you feel if it disappeared ?”
—————————————————
Well, you assume wrong, half of our so called safe money disappeared overnight.
Even the foreign currency accounts are subject to severe currency restrictions.
If only the foreign residents who deposited money in a foreign branch of Landsbanki were subject to exactly the same treatment as the Iceland depositers::)

By: Peter - London/Krakow

Peter - London/Krakow — Fri, 12 Mar 2010 11:20:27 +0000

“The Norwegians may be about to break ranks with the rest of the Nordics. Hopefully there will be more after the Nordic meeting tomorrow.”

Iceland has presumably already agree to the Nordic loans so this could be an excellent way of resolving this dispute. UK/NL get their money and the Nordic fulfil the – apparent – promise to help Iceland in this sort of situation. The UK ambassador was pushing for Norway to stump up in that leaked document.

The entire repayment term discussions become irrelevant as its unconnected to UK/NL in any case; that’s Iceland and its lenders problem.

By: Bromley86

Bromley86 — Thu, 11 Mar 2010 21:55:33 +0000

I’ve realised that the UK’s best option is simply to wait for as long as it takes.

The Norwegians may be about to break ranks with the rest of the Nordics. Hopefully there will be more after the Nordic meeting tomorrow.
http://icelandreview.com/icelandreview/daily_news/?cat_id=16539&ew_0_a_id=359173

So maybe this will make it to court after all.

By: james

james — Thu, 11 Mar 2010 19:31:37 +0000

“DH says:
March 8, 2010 at 8:19 am
Seriously guys, don’t sweat it. Don’t pay the UK a dime – they issued the banking licences and they ultimately bear the risk and consequences of those actions”

Not true but why let FACTS get in the way of brain dead posting