A group of people who purchased shares in Glitnir Bank after the state took possession of a 75 percent stake on the 29th September last year, is planning to sue the Icelandic government for the refund of its members’ money.
Glitnir collapsed roughly a week after the government stepped in as a shareholder and all investments made in the bank during that week were therefore lost.
An advertisement published in Morgunbladid and Frettabladid newspapers says people who bought Glitnir shares in the week leading up to the bank’s nationalisation were robbed by the government of the time – in many cases losing all their savings. The advert continues that affected people should join the group which intends to fight for a refund of lost money, all the way to the European courts if necessary.
The group says that after the state took a 75 percent share in Glitnir on 29th September 2008, a further ISK 3.9 billion was invested in the failing business.
The investors defend their decision to invest in Glitnir saying the government intimated that its involvement in the bank would save it from collapse and ensure a long future. People who believed the government stance therefore believed Glitnir was an excellent safe investment choice at a time when the entire global banking system seemed to be unravelling.
[…] Glitnir investors to sue Iceland for refund […]
“current Red-Green government of Iceland”
That seems a well-balanced government of all political colours. The 3 primary colours are red, blue and yellow; the latter two make green when mixed.
When the state took Glitnir over my share in it became worthless, when the gov put Glitir back on the market for a much lower price, it crossed my mind to buy again to try to retrieve the investment i had lost, but thats something a gambler would do, to try to win back what he had lost until he would be ruined, i decided not to buy shares in a freshly crashed bank, despite of the share price rapidly going up every day,
this was not that inportant to me but someone in a more desperate situation could have been tempted to try this,
the gov knew about the finacial situation in Iceland months in advance, thats why a certain Baldur was able to sell his shares before the crash just to point out one recent example,
this was just a play, to try to fool people into believing everything was under control whitch it was not, the people who fell for this where just collateral damage.
,
Terry did write :
>another whinger has appeared on the scene!
A legal argument, based on EU / EFTA laws should be welcomed.
Does not the EU commission want to show that it is fair and that it is a group ruled by law not by arbitrary whim of politicans ?
No doubt it will be introduced when Ice Save does finally find its day in court.
Jim write :
>I suspect it will be all to easy for the defence to demonstrate that the government of the time didn’t have a clue. About anything.
Well, it will be able to demontrate that it thought one thing would happen and then another did.
But I would apply you comment to current Red-Green government of Iceland for sure.
But.. it is healthy to have case like this ( Glitnir one ) go to the courts. That is exactly where this matters should be settled.
I like many Icelander is looking forward to ” Ice Save ” case going to court too. ( Unlike traitors to us Icelandic tax payer and our children in current government .)
@Fisy – “…does not have chance of snow ball in hell.”
To bring in som optimism, I found this picture where there are some snow at the station.
http://gfx.dagbladet.no/pub/artikkel/5/53/539/539810/hell_4_1215006080.jpg
> but this case does not have chance of snow ball in hell.
Don’t know about that Fisy, but just start paying what you owe – another whinger has appeared on the scene!
http://www.icelandreview.com/icelandreview/daily_news/?cat_id=16568&ew_0_a_id=352367
Davið and others believed at time that taking Glitnir would give it the credit rating of the sovereign ( ie Government of Iceland ).
Instead the opposite did happen and the sovereign did instead get closer to the credit rating of Glitnir, and other Icelandic banks too.
I am always sorry to see people lose the money but this case does not have chance of snow ball in hell.
“The investors defend their decision to invest in Glitnir”….hmmmmm
I guess their best line of defense – to claim that Glitnir and Government poisoned them with some “heavy illusions” drugs :-)
“the government intimated that its involvement in the bank would save it from collapse”
Actually, the government did nationalise the bank to save it from collapse…
Intimated ain’t ****. There are letters from the Icelandic government to the British government saying (on the surface) that they’d stand by the Icesave guarantee.
They were written over a year ago.
Of course, if you read them, they “intimate” a lot, but say very little.
But if the lawyers are willing to work for no win, no fee, then fair enough. It’s their time and money then.
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“the government intimated that its involvement in the bank would save it from collapse and ensure a long future”
They will need to prove that the government knew the entity was going to collapse and yet lied. However, I suspect it will be all to easy for the defence to demonstrate that the government of the time didn’t have a clue. About anything.