Iceland crisis


Should we make Iceland pay up?
October 18, 2008, 11:58 pm
Filed under: Iceland | Tags:

The British Government used Terror law to freeze assets of Icelanders, this caused the biggest bank of Iceland to collapse. Icelandic government has always promished to pay of deposit gurantee of 20.000 Euros.

Still the British used the terror law agaist the Icelanders.

Barclays, Lloyds, HBoS and HSBC all have substantial overseas operations. If any of these banks were to fail, would the British government have to pay off the foreign deposit holders?

That is the implication of making the Icelandic government cover British losses in Icelandic banks.

It is unfortunate that so many people and organisations in the UK have lost money in Icelandic banks. The small savers will get some compensation but the larger ones may have to take their losses on the chin.

Trying to force Iceland to pay up will get us nowhere could set a precedent that we might one day regret.

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