Icelandic government now in control of Landsbanki
News that the Icelandic government has seized control of the country's second largest banking operation, Landsbanki, does not bode well for the immediate future of the Icelandic financial sector. While normally this would not have registered in the UK press it seems as though many thousands of UK customers have become embroiled in the saga.
Landsbanki has an internet business, which is also under the control of the government, called Icesave which operates in the UK. It appears that many UK residents had been attracted by the higher than normal interest rates offered by the service but they seem to be paying the price now. As part of the nationalisation of Icesave's parent company the Icelandic authorities have announced a freeze on all deposit and withdrawals from the internet banking operation.
While there does not seem to be any immediate risk that the Bank could go under, the whole of Iceland is literally on the brink of bankruptcy. This is a country that for some time has been punching above it weight in the financial community but now appears to be paying the price for over extending the financial system. The prospects for the 300,000 inhabitants of Iceland do not look too hot at the moment.
Share this..
Related stories
Queen's speech to be used for attack on the City
This afternoon's Queen's speech in Parliament will be used as a springboard to attack the City of London and the financial sector. Despite the fact that we only have a few months until the next general election it is well known that the UK government will be presenting a massive number of "voter friendly" policies which will likely never see the light of day. In what many see as one of the biggest...
Read MoreAirline industry hit by new collapse
Budget airline SkyEurope has today cancelled flights for the foreseeable future after filing for bankruptcy. While the company is based in Slovakia it has significant operations from Luton and Manchester and has attracted a great number of UK travellers. Even though there is an industry compensation package in place there are growing concerns that refunds may not be available for a great number of...
Read MoreExtra £1m premium bond prize announced
29/05/2014 A second monthly premium bond prize of £1m will be launched by National Savings and Investments (NS&I) this August. The announcement means that two people will win a tax-free lump sum prize of £1m each month, instead of the current single winner. Additionally, as of the 1st of June 2014, premium bond holders will be permitted to own a maximum of £40,000, an increase of £10,...
Read MoreDubai state creditors set to do battle
There are rumours in the financial markets that bankers, lawyers and accountants are making their way to Dubai over the next few days as creditors look to begin a hard fought battle to claim back money loaned to the Dubai World company. As we have mentioned on numerous occasions over the last few days, Dubai World has asked for a period of suspension with regards to debt repayments on its $26 bill...
Read MoreOsborne unveils new budget “for working people”
08/07/2015 George Osborne, Chancellor of the Exchequer, today unveiled his new Conservative Budget which scrapped student grants, froze benefits and cut billions from tax credits and other welfare payments. The Budget held the £12 billion in welfare cuts the Conservatives promised in their manifesto, which has been spread over three years, not two like originally promised. It included mass...
Read More