More than three years after the Icelandic banking collapse, Kaupthing Singer & Friedlander (KFS) says it has repaid nearly all of the £4.6 billion owed to non-preferential creditors. Although all retail depositors have already been paid in full by the Financial Services Compensation Scheme, UK charities and councils who put savings into the bank have faced the continued possibility of heavy losses.
However, according to the bank’s administrators, £3.36 billion of the £4.6 billion still owed (73p for each pound) has now been given back to unsecured creditors. By the end of the year, it is expected that creditors will receive a final payback of between 79p and 86p for every pound invested.
The groups put their savings in KFS, which was based in the UK but owned by Kaupthing in Iceland, due to tempting interest rates. However, the credit crunch of 2008 brought a swift end to the Icelandic banking model, with Kaupthing, Glitnir and Landsbanki all collapsing and defaulting on a total of $85 billion in debt.
Speaking to the Financial Times, Arlingclose Partners director Mark Horsfield said the recovery of funds is going “better than we expected”. He added that most UK local authorities have also learnt their lessons and would not invest again with non-UK banks.
“The recovery of the assets of the Icelandic banks to its creditors does speak for itself !”
YES! Proving yet again (…as if further proof were needed!!) that the Icelandic race is superior to all others. Particularly in regards morals, ethics, scrupulous banking honesty, and of course the production of dried fish heads.
It is not the icelanders fault. We sent the check 3-1/2 years ago. It must have got lost in the mail.
The other 27p/£ and interest will turn up any day now.
G.
Not sure what your point was Fisy, as you seemed all over the place. But taking your conclusion:
>>>The recovery of the assets of the Icelandic banks to its creditors does speak for itself !
Indeed. Only by reprioritising such that bondholders get zip has Landsbanki managed to achieve a “normal” recovery.
https://www.icenews.is/index.php/2010/05/11/yet-another-day-of-iceland-banking-arrests/#comment-546219 let’s revisit what happened since this post Brumley..
Despite shambolic UK FSA invrestigations generously called by its own director as of “very regrettable errors” in the way it handled part of its Kaupthing inquiry involving Vincent Tchenguiz, we have charges against Hreidar Mar Sigurdsson of Kaupthing and Sigurdur Einarsson. They will have they day in court.
Since end of 2008 early 2009 posts ( many of them factually nonsense from Peter UK London Krakow ) I did some times refer to with my tongue in my cheek the ‘ Team UK ‘ posters here in IceNews.
>” The assets of the company are being distributed, that’s all. ”
And that understated reply is in contrast to the vitriolic post of comparing Icelandic bankers to the good sensible banks in UK and US.
Well how is asset recovery of UK banks RBS Royal Bank of Scotland and the Northern Rock and in US.
How about those US banks led by Merrill Lynch did get the rating agency particualrlyS&P and even Moodys Corp to rate mezzanine CDOs as double A, when in fact it was made up of 80% risky triple-B-rated loans as explained in The Big Short
Inside the doomsday machine” by Michael Lewis?
What about the Spanish banks I did warn about over last two years that now cannot hide they ” impaired ” loans in costal real estate no more.
When assets that Icelandic banks did buy 2005-2008 — now with they resolution committees of the banks — how bad now do Icelandic banks look in comparison with they peers from that time ?
LIke *normal* banks in comparison, that is how. They business model of funding did fail but not in the same league as other banks have failed.
The recovery of the assets of the Icelandic banks to its creditors does speak for itself !
“When they’re dragged kicking and screaming before the judge.”
… at 73p/£ and minus interest.
“But as I have said before, Icelanders to pay they debts.”
Yes. When they’re dragged kicking and screaming before the judge.
Without trying to start a fight with you Fisy, I hardly see how this relates to Icelanders paying their debts. The assets of the company are being distributed, that’s all.
>KSF (UK) has now paid out 73p/£ to all *** unsecured *** creditors
It is good to see that the parental guarantee was honoroued by the Icelandic courts. That is how it should be.
The assets the bank has are beginning to recover. I understand that you do want your 100 % back, and the legal process does continue. It will be a year or so more maybe for your 100 %.
But as I have said before, Icelanders to pay they debts.
Now I do hope that readers over the last years do under stand exactly what I was talking about in overall. Including the critics of me and my country men!
While it is correct that KSF (UK) has now paid out 73p/£ to all unsecured creditors, it is highly misleading to suggest that the final payback is expected to be made by the end of this year. Indeed, there seems no way that could be remotely possible. In their April 2012 report to creditors, the Administrators predict that final recovery should be between 81 and 86 p/£, but – unsurprisingly – are unable at this stage to provide any indication of when that figure might be achieved: “It is the intention of the Administrators to pay further dividends at regular intervals, subject to consultation with the Creditors’ Committee and it being cost effective to do so. The quantum of each dividend will be dependent upon the level of distributable funds at the time of dividend and, consequently, we are not able to provide an indication of the quantum or the timing of subsequent dividends at this time. However, we would anticipate being in a position to pay a further dividend by late Q4 2012.”
I would ask that you please check out your facts and make any necessary correction to what I believe to be false and misleading information to the victims of the bank failure, including the several thousand retail depositors of KSF IOM who, unlike the UK depositors, were not bailed out by anyone and who thus remain effectively indirect creditors of KSF UK through the unsecured claim of (the liquidators of) KSF IOM.
While it is correct that KSF (UK) has now paid out 73p/£ to all unsecured creditors, it is quite wrong and misleading to suggest that the final payback is expected to be made by the end of this year. Indeed, there seems no way that would be possible. In their April 2012 report to creditors, the Administrators predict that final recovery should be between 81 and 86 p/£, but are unable to provide any indication of when that figure might be achieved: “It is the intention of the Administrators to pay further dividends at regular intervals, subject to consultation with the Creditors’ Committee and it being cost effective to do so. The quantum of each dividend will be dependent upon the level of distributable funds at the time of dividend and, consequently, we are not able to provide an indication of the quantum or the timing of subsequent dividends at this time. However, we would anticipate being in a position to pay a further dividend by late Q4 2012.”