Iceland to vote on repaying 'debt'

[Razgovory]

Iceland sounds very mature.

1,000 years of carefully recorded inbreeding works wonders.

And that was before they cut down all the trees and were fated to live in poverty.

[Viking]

90%+ voted no. But that doesn't matter since everybody involved has moved on to a different proposal. Icelandic local politics, however, demanded that the people get to say no to a plan that nobody was proposing any more. Idiots.

In other news the President (the guy who started this whole thing) is pissed off with the Nordics for not bending over and giving us money.

[Admiral Yi]

Fight the power Iceland! 

I wonder what legal recourse, if any, the creditors have.

[Viking]

Fight the power Iceland! 

I wonder what legal recourse, if any, the creditors have.

?

Iceland and Britain and The Netherlands are already discussing a different package with lower interest rates. Before this referendum. The referendum rejected a plan previously abandoned by both sides. What part of this irrational stupidity don't you get?


Effectively Britain and The Netherlands compensated it's own residents for losses in a bank in another country and then demand that that other country then paid them back.

[Viking]

93.2% said no, 1.8% said yes and 5.0% had nothing better to do than spoil their ballots. Turnout was around 62%.

[Josquius]

Letting the people vote on that....wasn't that a bright idea!

[Viking]

Letting the people vote on that....wasn't that a bright idea!

That's what the PM said, she didn't vote, she stayed at home with her lesbian lover.

[Faeelin]

Effectively Britain and The Netherlands compensated it's own residents for losses in a bank in another country and then demand that that other country then paid them back.

My understanding is that Iceland was obligated to guarantee those accounts, no?

[Viking]

Effectively Britain and The Netherlands compensated it's own residents for losses in a bank in another country and then demand that that other country then paid them back.

My understanding is that Iceland was obligated to guarantee those accounts, no?

Yes, and had it not those people could have sued the Icelandic government in icelandic courts. Instead of having that happen the dutch and british governments froze the assets of the banks using anti-terror laws and then compensated local depositors before declaring that the icelandic government owed them what had been used to compensate the depositors.

Then the discussion started about how the Icelandic government could pay their creditors.

Previously deposit insurance has always been the case of the local government guaranteeing the deposits of the electorate, so stringent deposit insurance criteria have never been needed, it has always been a case of the government effectively guaranteeing deposits. This is not a problem where a highly motivated government (voters are depositors) with funds on par with the problem (only voters are depositors). However when banks have foreign customers but do not list abroad the government is not very motivated (screw the dutch, they don't vote in our elections) and the funds are not on par with the problem (you had how many times our population as customers?) then the flimsy existing rules do not suffice.

Previously foreign customers have been screwed over when banks go bust getting only a percentage of deposits, but in those cases the EEA did not apply.

Iceland is obligated to pay, yes, but the UK and the Netherlands have been taking liberties as if the banks were local and demanding action from iceland as if the banks were icelandic. It's more complicated than that.

[Admiral Yi]

Previously foreign customers have been screwed over when banks go bust getting only a percentage of deposits, but in those cases the EEA did not apply.

What do you mean by this?  First, what is the EEA, and second what are you referring to when you talk about foreign customers who got screwed previously?

[Viking]

Previously foreign customers have been screwed over when banks go bust getting only a percentage of deposits, but in those cases the EEA did not apply.

What do you mean by this?  First, what is the EEA, and second what are you referring to when you talk about foreign customers who got screwed previously?

The EEA is the European Economic Area which integrates certain non-members of the EU into certain EU levels of integration. Iceland, Norway and Lichtenstein are non-members of the EU which are economically integrated into the EU.

http://en.wikipedia.org/wiki/European_Economic_Area


foreign customers?

WaMu, the problem here (for the icelandic government) is the EEA agreement prevents discrimination against foreigners.

[Admiral Yi]

Washington Mutual's foreign depositors only got a fraction of their deposits back?