Iceland fends off hedge fund attacks

ianmr65

From the FT

"Iceland's aggressive moves to fend off an alleged speculative attack by international hedge funds on its currency, banks and stock market seem to be working.
The cost of insuring the debt of the country's banks in the credit default swap market fell sharply this month, indicating that hedge funds were taking flight, analysts said. The Icelandic Financial Supervisory Authority is investigating an alleged speculative attack involving manipulation of the CDS market and distribution of misleading information.
The announcement of the investigation was co-ordinated with an emergency interest rate increase by the central bank and measures to inject liquidity into the financial system."

Read the whole article here

http://www.ft.com/cms/s/0/72b29352-0ce1-11dd-86df-0000779fd2ac.html

shindigger

Krone Krone, Uber alles!!:T