ICESAVE Victory

[Viking]

http://www.businessweek.com/news/2013-01-28/iceland-wins-court-case-over-dutch-u-dot-k-dot-icesave-compensation

Iceland Wins Court Case Over Dutch, U.K. Icesave Compensation

Iceland may avoid damages claims as high as 335 billion kronur ($2.6 billion) after a European court said it didn't break the law by refusing to compensate U.K. and Dutch depositors that held money in Landsbanki Islands hf high- yielding Icesave accounts after the bank collapsed.

The European Free Trade Association's court today rejected the lawsuit by the EFTA surveillance authority, the agency in charge of supervising Iceland's compliance with European rules. A defeat for Iceland may have allowed the Netherlands and the U.K. to seek damages of much as 335 billion kronur, according to International Monetary Fund estimates.

The EFTA surveillance authority sued the island in 2011 over its failings, arguing that Iceland has a duty under EU law to guarantee a minimum compensation within a time limit and how this is achieved is up to the government. The U.K. and the Netherlands ended up compensating their citizens and were demanding that Iceland repay the full amount, with interest.

Landsbanki, which had sought to attract foreign depositors through high-yielding internet accounts that saved it the trouble of opening subsidiaries abroad, collapsed in October 2008 with the rest of Iceland's debt-laden banking industry.

The Icelandic authorities maintained that Iceland was obliged under European rules to guarantee minimum compensation of 20,000 euros ($26,900) to Dutch and British holders of Landsbanki's high-yielding Icesave accounts.

"It is a considerable satisfaction that Iceland´s defense has won the day in the Icesave case," Iceland's Foreign Ministry said in an e-mailed statement. "The EFTA Court ruling brings to a close an important stage in a long saga."

The agency checks that Iceland, Norway and Liechtenstein comply with European rules governing the European Economic Area, which consists of the three countries plus the 27-nation EU.

Ben Feiertag, a The Hague-based spokesman of the Finance Ministry, wasn't immediately available to comment when contacted over the phone today.

Today's ruling is binding and can't be appealed.

The case is: E-16/11, EFTA Surveillance Authority v. Iceland.

To contact the reporter on this story: Stephanie Bodoni in Luxembourg at [email protected]

To contact the editor responsible for this story: Anthony Aarons at [email protected]

A says B owes C money.
A gives C money.
A says B now owes A money.
Court says WTF A?

[mongers]

A says B owes C money.
A gives C money.
A says B now owes A money.
Court says WTF A?

Didn't know you were one of the occupy crowd.

[Viking]

Didn't know you were one of the occupy crowd.

Yes, I belong to International and Local Occupy The Pub, meetings friday evenings, saturday evenings and sunday mornings for english breakfast.

[Martim Silva]

I salute this victory of the Icelandic people and of President Grímsson.

Despite all the detalis surrounding the problem (and there are some), the bottom line is that the best decisions were taken to guarantee the Iceland's future and that in no instance whatsoever should the taxpayers be made liable to pay for the debts incurred by private banks.

[Admiral Yi]

I salute this victory of the Icelandic people and of President Grímsson.

Despite all the detalis surrounding the problem (and there are some), the bottom line is that the best decisions were taken to guarantee the Iceland's future and that in no instance whatsoever should the taxpayers be made liable to pay for the debts incurred by private banks.

You're opposed to deposit insurance?

[Viking]

You're opposed to deposit insurance?

The issue wasn't deposit insurance, it was the short circuting the icelandic legal process by the british and dutch governments.

[DGuller]

Insurance is worthy anything only if the insurance company is solvent.  You can make an argument that insurance company fucked up, but that's of little utility when you're making that argument after it already went bust.

[Admiral Yi]

The issue wasn't deposit insurance, it was the short circuting the icelandic legal process by the british and dutch governments.

I wasn't responding to the issue, I was responding to Martim's post about never bailing out bank creditors.

Though on your issue, AFAICT Icelandic law had nothing to do with it.  Rather the amounts of deposit insurance required differed for EU and EFTA countries.

[citizen k]

Olafur Ragnar Grimsson Iceland president 'Let banks go bankrupt'

http://www.youtube.com/watch?feature=player_embedded&v=51-Jfh6ADH0

[Legbiter]

The Brits and the Dutch will get the money back they used to reimburse all the savers in Icesave (it's already 90% complete) as the liquidation of the old Landsbanki continues. What they'll never see is the shortfall/interest they wanted Iceland's taxpayer to cover for stepping in. It's no longer a sovereign issue to be settled by the Icelandic taxpayer.

On that front the UK and the Dutch can now go and officially fuck themselves. As for Iceland, one by one, the old bank honchos are getting jail time for a host of white collar crimes in the runup to the banking collapse.

[DGuller]

As for Iceland, one by one, the old bank honchos are getting jail time for a host of white collar crimes in the runup to the banking collapse.

You can do that?

[Legbiter]

As for Iceland, one by one, the old bank honchos are getting jail time for a host of white collar crimes in the runup to the banking collapse.

You can do that?

It's a couple of years in a cuddly white collar prison mind you. The social shunning in this fishing village on steroids that is Iceland is probably alot more serious.

[Sheilbh]

There is something compelling and attractive about Iceland's approach.

[Iormlund]

Meanwhile, in Spain we're relaxing the rules so convicted bankers can return to their jobs. Not that it makes much difference, since now they just simply get a pardon from their buddies at the government.

[mongers]

The Brits and the Dutch will get the money back they used to reimburse all the savers in Icesave (it's already 90% complete) as the liquidation of the old Landsbanki continues. What they'll never see is the shortfall/interest they wanted Iceland's taxpayer to cover for stepping in. It's no longer a sovereign issue to be settled by the Icelandic taxpayer.

On that front the UK and the Dutch can now go and officially fuck themselves. As for Iceland, one by one, the old bank honchos are getting jail time for a host of white collar crimes in the runup to the banking collapse.

You do know the British and Dutch Royal Marine corps have trained together for decades for such eventualities.