Icelandic Government's actions - surely they're illegal

Fella

You see what I mean though? The Icelandic Govt appear to be having it both ways: they are treating Landsbanki & Icesave separately in order to justify allowing continued business at one but not the other. But they are using their COMBINED troubles (because Icesave certainly aren't in trouble - all they do is take deposits - it's Landsbanki who are in trouble) - to justify putting them in receivership.

It stinks IMO. Our Govt should be hung out to dry for allowing this to happen without so much as a comment.

Fella

opinions4u wrote: »

Perhaps you should sue them under human rights legislation? Or fly to Iceland and appeal to their Parliament?

Sorry, in case I wasn't clear I was looking for sensible discussion, not glib comments from stupid t0ssers.

pressuredrop_2

After watching/reading the news today the UK savers would attempt to withdraw their cash, which could be a few billion quid.

The freezing of UK accounts is understandable.

Fella

I'm not talking about whether it's understandable.

Surely this isn't that hard a concept to get?

I'm talking about whether it's LEGAL.

GeorgeHowell

Fella wrote: »

You see what I mean though? The Icelandic Govt appear to be having it both ways: they are treating Landsbanki & Icesave separately in order to justify allowing continued business at one but not the other. But they are using their COMBINED troubles (because Icesave certainly aren't in trouble - all they do is take deposits - it's Landsbanki who are in trouble) - to justify putting them in receivership.

It stinks IMO. Our Govt should be hung out to dry for allowing this to happen without so much as a comment.

I suspect that in their usual way our government is dithering over it. When the ridiculous FSA considered the compensation scheme and allowed some institutions to enter into the 'passport' version, you can bet that with their usual aplomb they failed to consider the implications if a home country's scheme could not or would not cough up. Now there is a possibility of this they have to make up a policy on the hoof. Brown and Campbell will be choking at the prospect of another drain on public finances at a time when their own profligate waste and overspending over many years has caught up with them.

Nevertheless my guess is that if push comes to shove, the FSCS, backed by HMG, will cough up the full amount and then try to get it back. Brown and co won't want the poltitical fallout of not doing so. Some of us decsribed this possible scenario some months ago on here, but sadly some others did not take heed.

g0recki

GeorgeHowell wrote: »

If that is indeed what they are doing then the message is clear -- as far as foreign owned/foreign based banks are concerned, get out asap and stay out. Some people failed to do this despite the recent warnings. Hopefully the lesson is now learned. Don't be like the bankers and allow greed to override prudence.

I dispute that it is automatically more prudent to invest in the UK than abroad. The only way that money in Icesave (below the £50,000 per person limit) is unsafe is if Iceland goes bankrupt, or indeed if the UK goes bankrupt. Assuming that an entire country will not go bankrupt is a very reasonable assumption, or at least inconceivable to your average Jo(e).

I still think it is very unlikely that Iceland will go bankrupt: Scandanavia, Europe, or the rest of the World won't allow it. And even if it did, it is politically dangerous for the UK govt not to step in and compensate 300,000 of its citizens who were 'doing the right thing'.

Edit: Disclaimer: I have £10,000 in an Icesave ISA.

dylon_2

Something is odd, the bank is still operating in Iceland and i see the Dutch website is still open.
I suspect that the Uk were asked for help by the Icelandic government and we turned them down, hence the Russian load.
This is Iceland giving two fingers to Brown an co.

rother

ray123

They can stick their Kaupthing up their a**...

After their treatment of UK savers, I will be moving the remainder of my money out...

GeorgeHowell

g0recki wrote: »

I dispute that it is automatically more prudent to invest in the UK than abroad. The only way that money in Icesave (below the £50,000 per person limit) is unsafe is if Iceland goes bankrupt, or indeed if the UK goes bankrupt. Assuming that an entire country will not go bankrupt is a very reasonable assumption, or at least inconceivable to your average Jo(e).

I still think it is very unlikely that Iceland will go bankrupt: Scandanavia, Europe, or the rest of the World won't allow it. And even if it did, it is politically dangerous for the UK govt not to step in and compensate 300,000 of its citizens who were 'doing the right thing'.

Depends what you mean by bankrupt. Remember that Iceland is only the size of Coventry. It's GDP is not huge (about $20 billion) and it has been punching recklessly above its weight with its banking activities. If the compensation bill it could be faced with -- $4-5 billion, maybe 50% of the Iceland governments annual budget ? -- is so large that it cannot find the money without cutting its own vital services to an unacceptable degree then it is likely at least to defer payment indefinitely and pray for a miracle. Icelanders are not going to go cold, hungry, and sick in order to pay back British savers' deposits. I have no idea how likely this is but there seems to be an absence of reassurance from any quarter that British deposits in Icesave are 100% safe, no matter what. As far as savers 'doing the right thing' is concerned, the FSA did issue a cryptic warning a few months ago about these 'passport' banks. Not everyone took heed.

Fella

dylon wrote: »

Something is odd, the bank is still operating in Iceland and i see the Dutch website is still open.
I suspect that the Uk were asked for help by the Icelandic goverment and we turned them down, hence the Russian load.
This is Iceland giving two fingers to Brown an co.

rother

I must admit the same thing occurred to me. The scandalous lack of comment from Brown et al - the only explanation I can think of is that wrangling with the Icelandic Gov is going on behind the scenes.