Good Luck With That
The BBC reports that UK and Netherlands to sue Iceland over lost deposits
The UK and Dutch governments are preparing court action against Iceland to recover 4bn euros (£3.5bn) lost when the country’s bank system collapsed.
It follows a referendum in Iceland which rejected a repayment plan.
…The UK and the Netherlands say they are owed the money following the collapse of Icelandic savings bank Icesave. British and Dutch depositors were bailed out by their governments, which are now demanding their money back.
The reality is that unlike Ireland, Iceland did not involve the government in the failure of their banks. The government made good on the deposits lost by its citizens, but gave no guarantees regarding other losses.
The banks went bankrupt and are in receivership, so their assets are being liquidated. The banks’ creditors will be paid from those sales.
I don’t quite understand the basis of the lawsuit. How can the UK and the Netherlands obligate the funds of Iceland? The people of Iceland aren’t buying the logic, and don’t want to be responsible for losses when they didn’t share in the profits. If the depositors weren’t insured by the government of Iceland, I don’t understand how Iceland becomes responsible for the losses.
4 comments
People in Iceland have money. So they should hand it over. Because.
I want to know what’s happened to the bankers who caused this mess. I hope they’re on the streets with only barrels for clothes, eating out of dumpsters…
In Iceland they are in jail awaiting trial, which is probably what is making the Europeans so nervous.
Very satisfying. Why can’t we get it together to do that here?
It is apparently much harder to fool 300 thousand people, than 300 million. The Icelanders figured it out immediately, while Americans are still without a clue.