kaupthing edge?? Worrying!!

udydudy

I may be over the edge(pun intended).... There is a new financial institution(not sure if it is a bank), looks like a denmark based institution.

Offering extremely good interest rates over 3 year period(6.8%) but worrying thing is their only products are savings products. no lending. I am wondering how they generate an income. I would believe all financial institutions make money by borrowing and lending onwards. How come in the UK these guys are not lending? Is interest rates in denmark higher than here that they borrow here(savings) and lend in denmark?

Niksan

http://forums.moneysavingexpert.com/showthread.html?t=719745

but mainly, at the bottom of this.

http://www.moneyweek.com/file/41437/credit-default-swaps-how-to-spot-the-riskiest-banks.html

money-savings-fan

Kaupthing are Icelandic. In the UK they run under the name Kaupthing Singer & Friedlander Limited (following the acquisition of Singer & Friedlander, the British merchant Bank in 2005):

'Kaupthing Singer & Friedlander Limited provides corporate banking services to small and medium sized companies as well as a full range of investment banking services, including treasury, asset management, capital markets and comprehensive wealth management services to high net worth individuals.'

http://www.kaupthing.com/