Iceland - How the money was returned to savers & who pays

asbokid

RayWolfe wrote: »

Oh so the failure of Icelandic banks was the fault of the UK government. You learn something new every day.

That's probably quite close to the truth..

The collapse of the Icelandic banking system was engineered by a financier oligarchy centred on London, and to whom the UK government is enthralled.

The Iceland banks were imploded through a high profile smear campaign of scaremongering played out in the UK financial press, followed by a staged run on the Krona managed by rogues like George Soros, and then, to deal the final blow, the Icelandic banks were finally slaughtered by the British government using extraordinary anti-terrorism powers.

So yes, the Westminster government played a pivotal role in the demise of the Icelandic banks, and the government's orders, as ever, came from the City of London..

RayWolfe

I agree.
.... and to make it worse, Aliens have just captured my dog.

agsnu

asbokid wrote: »

The Iceland banks were imploded through a high profile smear campaign of scaremongering played out in the UK financial press, followed by a staged run on the Krona managed by rogues like George Soros, and then, to deal the final blow, the Icelandic banks were finally slaughtered by the British government using extraordinary anti-terrorism powers.

That's a bit unfair, it turns out. They were extremely dependent on wholesale funding markets (think Northern Rock), which they recognised in 2006ish and started rapidly expanding into retail deposits in other markets (think Icesave). But they were still reliant on the liquidity of wholesale funding markets... Which were basically screwed after Lehman.

It also turns out that the Icelandic banks were all fairly intertwined, and involved in shady accounting practices - in the run up to the end, they wrote huge loans to investors so that those investors could buy shares in the banks themselves, which is effectively fabricating equity. They made huge loans to investment companies owned or controlled by the owners of the banks - in some cases bypassing the banks' own approved loan approval procedures.

You might like to read:

http://www.vanityfair.com/politics/features/2009/04/iceland200904
http://icelandreview.com/icelandreview/search/news/Default.asp?ew_0_a_id=314872
http://icelandreview.com/icelandreview/daily_news/?cat_id=59343&ew_0_a_id=321870