The Mudcat Café TM
Thread #114937 Message #2459174
Posted By: Emma B
07-Oct-08 - 08:40 AM
Thread Name: BS: So it has come to this - Iceland
Subject: RE: BS: So it has come to this - Iceland
The Icelandic internet bank Icesave has stopped UK customers withdrawing or depositing money since nationalisation
The notification from the bank, which is part of the newly-nationalised Landsbanki, did not offer any explanation for the move.
It is believed that 300,000 British UK savers have around £4bn invested in Icesave.
Landsbanki, which runs Icesave, is one of a handful of European banks operating in Britain which has the so-called passport exemption - meaning that when the bank fails, the first €20,000 (around £16,000) needs to be reclaimed from the Icelandic compensation system, not the UK system.
This morning the Icelandic central bank announced that it hoped to arrange a €4 billion loan from Russia Officials will travel to Moscow tomorrow for talks.
'The fate of Iceland, which has extensive interests in the UK, is seen as a warning for the rest of the world, after a long boom fuelled by debt
In an address broadcast on Icelandic television last night, prime minister Geir Haarde announced plans to rush through the emergency bill, supported by opposition parties, allowing the government to push through mergers between the battered banks or force them into bankruptcy
The emergency bill would also allow the government to take over housing loans held by the banks.'
- from today's Guardian