Will XL's demise effect Icesave etc?

blizeH

Just noticed this on a football article:

It is believed that West Ham owner Bjorgolfur Gudmundsson may also have been personally affected by the company's failure, as he is the majority shareholder of Landsbanki, an Icelandic bank reported to have invested in XL.

thumshie

Also stated on BBC news http://news.bbc.co.uk/sport1/hi/football/teams/w/west_ham_utd/7611752.stm

And West Ham's involvement with XL does not end there. Hammers chairman Bjorgolfur Gudmundsson, who owns Iceland's biggest bank, Landsbanki, is one of the guarantors of a 207 million Euros bank loan given to the company.

formulaonefan

I was thinking the same. could this affect kaupthing edge??? I know it shouldn't but all these banks have been lending each other like crazy and all of a sudden they run out of money. Economy getting worse day by day...recession looming. Exactly who can we trust with our money? Only big banks I suppose but they pay worse interest rate ever.

Farway

formulaonefan wrote: »

. Exactly who can we trust with our money? Only big banks I suppose but they pay worse interest rate ever.

This is where the fear and greed equation comes into it, can a persons greed overcome their fear?

Your call


Greed may be too strong a term here I know but the saying is well known regarding stocks & shares

LongTermLurker

I'm not sure I follow the fear/logic

• West Ham are sponsored by XL travel
• XL travel goes into receivership
• XL travel are sponseored by Eimskip
• Bjorgolfur is a shareholder in Eimskip
• Bjorgolfur is also a shareholder in Landsbanki

Do Landsbanki back Eimskip? That's not stated in the artical. If Man U's sponsor AIG went into receivership, would the press be up in the air about Lloyds or whoever underwrites them? The fact that one person is a shareholder in the sponsor and the sponsor's bank should have little relevance, because Landsbanki's money isn't Bjorgolfur's and vv.

Stompa

http://www.bloomberg.com/apps/news?pid=20601102&sid=a30dr.jIN_KY

"XL owes Icelandic lender Landsbanki Islands hf 207 million euros ($292 million), Wyatt said. The loan is guaranteed by Hf Eimskipafelag Island, and Landsbanki ``do not anticipate any loss,'' according to spokesman Andrew Walton. "

LongTermLurker

Stompa wrote: »

http://www.bloomberg.com/apps/news?pid=20601102&sid=a30dr.jIN_KY

"XL owes Icelandic lender Landsbanki Islands hf 207 million euros ($292 million), Wyatt said. The loan is guaranteed by Hf Eimskipafelag Island, and Landsbanki ``do not anticipate any loss,'' according to spokesman Andrew Walton. "

So Landsbanki own the loan, but Eimskip are guarantor. Turning round what I said above, Bjorgolfur's money isn't Eimskip's, although if Eimskip couldn't pay back XL's loan, then his shares in Eimskip would be lost, making him, personally, poorer.

I doubt it'll see him queueing up at the fish factory doors like Yosser Hughes though

isofa

LongTermLurker wrote: »

I doubt it'll see him queueing up at the fish factory doors like Yosser Hughes though

My favourite quote on this forum in many months! :rotfl: