The High Court of England has consented to Kaupthing Bank’s request for permission to apply for judicial review of the legitimacy of the decision taken by the UK authorities to transfer to a third party, without compensation, deposits from Kaupthing Edge accounts at the bank’s UK subsidiary, Kaupthing Singer & Friedlander, on 8 October 2008. This decision was a precursor to the decision by the UK authorities to place Kaupthing Singer & Friedlander into administration, which led the bank’s creditors to call in the bank’s loans and resulted in the Financial Services Authority’s taking control of the bank.
The court will now fix a hearing at which evidence and arguments concerning the UK authorities’ intervention into the operations of Kaupthing Singer & Friedlander will be considered. Kaupthing Bank contends that the actions of the UK authorities were unjust and illegal.
Kaupthing Bank’s resolution committee welcomes the court’s decision and hopes that promised financial support will be forthcoming from the Icelandic Government to ensure that legal proceedings can be continued. Kaupthing Bank’s resolution committee also wishes to underline that the court’s decision in no way indicates what the final outcome of this case will be.