Iceland: "We're keeping your money, suckers!"

[Crazy_Ivan80]

I can understand the Icelanders though... they're basically asked -if not coerced- to cough up 13k euros per person to help some people who put their money on icelandic banks because they wanted that half-percentage more. People don't like greedy persons.

[Viking]

Viking's been quiet. Think he's getting tooled up to repel international armed debt collectors?

I get to sleep right?


This has been brewing for a few weeks now. The Allthing debated this and passed a law to guarantee the deposits in the Icelandic banks, regardless of origin of depositor. There were many reasons for doing this good and bad, but it was done. Passing this law had many consequences many good, many bad, but on balance it was more good than bad. Now many Icelanders seem to think that they can renege on an agreement and keep the good consequences to avoid the bad consequences.

We got a very very good deal. The law that is being discussed is not really the document that forces us to pay (we have real laws for that) but rather the payment plan that only makes us pay if we can afford it. I'm not sure how much will there is in Britain and the Netherlands to actually pursue this, but then again France vetoed British EEC membership for less valid reasons. We don't like greedy people, but we let these people (the Bankers) get away with fraud. The President (who is trying to refuse to sign this) actually went to meetings for IceSave in London giving his personal guarantee of solidity. So I think we should not look a gift horse in the mouth say thanks and plead poverty 10 years hence when we are actually in the EU and ask that the UK and Dutch contributions be increased to pay Iceland so Iceland can pay it's debt.

[Faeelin]

I can understand the Icelanders though... they're basically asked -if not coerced- to cough up 13k euros per person to help some people who put their money on icelandic banks because they wanted that half-percentage more. People don't like greedy persons.

The Greedy ones would be the Icelandic bankers who decided they could take people's money and breach laws guaranteeing deposits, no?

[Viking]

Is Iceland somehow legally responsible for these accounts?

Under the European Economic Area rules there must be a state backed guarantee of about 20k Euro per customer if you operate a bank in another country. Iceland's banks operated under these rules so Iceland is liable for these losses. Or at least that's the stance of those countries that have suffered the losses. Iceland probably has a different opinion on that.

Well, basically the Law the President might refuse to sign agrees to the liability and fixes the payment to icelandic economic growth. In return the UK and the Netherlands have agreed to not block Icelandic EU membership (which is probably the most important part of our recovery).

[Crazy_Ivan80]

I can understand the Icelanders though... they're basically asked -if not coerced- to cough up 13k euros per person to help some people who put their money on icelandic banks because they wanted that half-percentage more. People don't like greedy persons.

The Greedy ones would be the Icelandic bankers who decided they could take people's money and breach laws guaranteeing deposits, no?

they're also greedy, but that doesn't really absolve the people of their actions. Especially if you know that the warning lights about iceland were on at least 6 months before the shit hit the fan (I remember reading about the precarious banking situation in Iceland early 2008 in, iirc, the economist). If people don't inform themselves about this (while they're apparently savvy enough to inform themselves about the fact that there's more interest to be earned in Iceland) then they cannot claim to be innocent.
We've got a name for that kind of people: "geldzak nooit vol" (literally: the moneybag is never full)

[The Brain]

Iceland = Third World

[Admiral Yi]

The Greedy ones would be the Icelandic bankers who decided they could take people's money and breach laws guaranteeing deposits, no?

How did the bankers breach laws about *governmental* guarantee of deposits?

[The Minsky Moment]

they're also greedy, but that doesn't really absolve the people of their actions. Especially if you know that the warning lights about iceland were on at least 6 months before the shit hit the fan (I remember reading about the precarious banking situation in Iceland early 2008 in, iirc, the economist). If people don't inform themselves about this (while they're apparently savvy enough to inform themselves about the fact that there's more interest to be earned in Iceland) then they cannot claim to be innocent.

Ok but the Iceland government has already paid out all the domestic account holders who were just as greedy while refusing equal treatment for overseas account holders.  Even if this can be squared with the literal language of the EEC treaty's non-discrimination provisions, there is a certain stink about it.

[Faeelin]

The Greedy ones would be the Icelandic bankers who decided they could take people's money and breach laws guaranteeing deposits, no?

How did the bankers breach laws about *governmental* guarantee of deposits?

If we're going to call people who invest for an extra half a percent greedy, why shouldn't we call bankers who knew they couldn't repay their deposits greedy?

[Richard Hakluyt]

People are greedy, but seeking out a decent interest rate in a sound bank is hardly the most egregious display of that greed 

I looked at those banks myself but instead went for a Dutch savings bank, on the basis that the deposit guarantee was more sound as it was backed by a larger economy.

People thought that banking with an Icelandic bank was much the same as choosing a Swiss or Dutch bank; the really greedy ones probably went for a Nigerian savings bank 

[Admiral Yi]

If we're going to call people who invest for an extra half a percent greedy, why shouldn't we call bankers who knew they couldn't repay their deposits greedy?

Why can't you admit you were wrong about deposit guarantees?

[Crazy_Ivan80]

People are greedy, but seeking out a decent interest rate in a sound bank is hardly the most egregious display of that greed 

continuing to stick around when people in the know are warning of the dangers of staying around is. That or stupidity. Better to be called greedy rather than stupid then I guess

[Crazy_Ivan80]

they're also greedy, but that doesn't really absolve the people of their actions. Especially if you know that the warning lights about iceland were on at least 6 months before the shit hit the fan (I remember reading about the precarious banking situation in Iceland early 2008 in, iirc, the economist). If people don't inform themselves about this (while they're apparently savvy enough to inform themselves about the fact that there's more interest to be earned in Iceland) then they cannot claim to be innocent.

Ok but the Iceland government has already paid out all the domestic account holders who were just as greedy while refusing equal treatment for overseas account holders.  Even if this can be squared with the literal language of the EEC treaty's non-discrimination provisions, there is a certain stink about it.

being a citizen of a place doesn't equal being not a citizen of a place.

[The Brain]

People are greedy, but seeking out a decent interest rate in a sound bank is hardly the most egregious display of that greed 

continuing to stick around when people in the know are warning of the dangers of staying around is. That or stupidity. Better to be called greedy rather than stupid then I guess

Wasn't there a government guarantee?

[Syt]

People are greedy, but seeking out a decent interest rate in a sound bank is hardly the most egregious display of that greed 

continuing to stick around when people in the know are warning of the dangers of staying around is. That or stupidity. Better to be called greedy rather than stupid then I guess

German tabloid BILD still recommended investing with a certain Icelandic bank a week or two before it folded. Not saying that they aren't stupid.