Brown knew about the Icelandic problem six months ago

  • sami
  • 10/10/08 31/05/09
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Posted: Sat, 01/11/2008 - 07:45

This information surely strengthens our argument and illustrates how we were kept in the dark - from The Press Association...

"... What was so striking (was that) the Governor of the Bank of England had judged that the Icelandic banks were in such dangerous and volatile condition that it would be difficult to save them and yet the authorities ignored all of this information and as a result billions of pounds of LGA (local government authority), police, charities money has been lost," he told the programme. There is a need for an investigation and at the very least a proper statement of exactly what the British Government was told, when they were told and what they did."

The Treasury defended its actions. A spokesman said: "We are clear that we took the appropriate action to protect depositors and we continue to discuss the matter with the Icelandic authorities."

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early UK knowledge of Icelandic problems

  • banna
  • 15/10/08 01/03/10
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  • Sat, 01/11/2008 - 16:06

While it might be difficult to see all that Darling/Brown/BOE/FSA might have done in April/May there are several things they could have done - had they had the will and the nous to do so.

  1. BOE could have called in the ratings agencies and pointed out the problems. Gradual reductions of ratings would have alerted those of us who look at them- and we might have withdrawn or not invested. Up to the last few days Kaupthing was still AA rated.

  2. They could have made a formal agreement with the the Icelandic Govt to stand behind the the banks' guarantees. That would have made the Icelandic Govt rein in their banks.

  3. They could have persuaded the banks to offer lower interest rates, so attracting fewer customers.

  4. They could have persuaded the banks to slow down taking funds, turning some away on the grounds that they could not find investment potential - Northern Rock has done so, and so did Berkshire Hathaway.

  5. They could have insisted the banks improve their capital ratios.

  6. They could have persuaded LAs to withdraw their funds from all foreign banks and put them in to Treasury Bills - and find a plausible reason for saying so.

All this could have been done behind closed doors - and don't tell me Governments never do such things!
Instead as far as we know they did nothing until they took a very large hammer to crack our small nuts.
This is all water under the bridge - but if, God forbid we have to go to law- this line of thinking might be useful.


Re Treachery continued

  • sabi Star
  • 10/10/08 n/a (free)
  • unspecified
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  • Sat, 01/11/2008 - 13:59

Also boss of Kaupthing, Sigurder Einarsson, it would seem knew, as he stuffed GBP10 million into a west London house that could not sell for GBP8million.


might be interesting to note

  • expat
  • 10/10/08 31/05/09
  • unspecified
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  • Sat, 01/11/2008 - 09:13

might be interesting to note why Kaupthing were not named in the Landbanski 2008 order as well!!!!


Treachery

  • bellyup
  • 10/10/08 09/01/10
  • a depositor
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  • Sat, 01/11/2008 - 08:53

So HMG and and you can bet your life the Derbyshire BS - who I think have behaved despicably in this matter- they literally sold their loyal customers up the creek without a paddle or more aptly on a raft heading for Niagra.

I dont know exactly what HMG should /could have done but if you saw the tsunami coming would you not at least try to warn those who were still blissfully unaware?


Treachery-continued.

  • jamjar
  • 11/10/08 31/05/09
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  • Sat, 01/11/2008 - 13:46

Yes you would warn people of an iminent tusnami, IF you wanted to, as 99.9% of people would. But if you didnt wish to warn people,then you must have a an ultereor motive for not warning them, or you simply couldnt ,and could in defence quote numerous reasons why you didnt warn them.Now then, what is the real reason why the DEPOSITORS werent warned of the iminent tusnami,did you know,did your freinds know,did ANYBODY know,the answer is YES,the BOE knew,HMT knew,FSA knew,PM knew,FSC IOM knew,IOM GOV knew,and may i suggest KSF-IOM knew.In KSF-IOM M.D. affadavit,it clearly states they were instructed to transfer all deposits to UK ,instead of proportionaly to the parent in Iceland,and UK.the MD and his board of directors,cannot say they didnt ask why,because of their responsability of the reporting mechanisms,to the parents in Iceland,since as been relevant,and as declared by Aspden of FSC,from spring 2008,may be longer back,than that. What hasnt come to the fore yet,is whether FSC-IOM,where instructed,and by whom,to transfer KSF-IOM assetts to UK,instead of Iceland,because thats a MONUMENTAL decision for anyone or organisation to make and execute,especially in government,and cannot beleive that decision was made WITHOUT back up cover of strong representation,with WHO. that colleagues is what we must expose.If we are not successful in retreiving 100% ,of our money back into safe keeping before the NOV 27th,high court hearing,and with knowledge thats presented itself to date,then I beleive the definative course is thro the courts of justice systems.


Interesting

  • Diver
  • 11/10/08 31/05/09
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  • Sat, 01/11/2008 - 09:09

I wonder just how much this has to do with Kaupthing as opposed to Landsbanki and Heritable. The reason I wonder is because if Kaupthing was one of the banks in as much trouble as being suggested in the C4 news piece then how were they getting the credit ratings that they did? Either Kaupthing was ok and not in the position described on the news or there has been fundamental misrepresentation of a bank's standing by the ratings agencies. This will be interesting to watch.


kaupthing's credibility

  • joooojoooo
  • 10/10/08 n/a (free)
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  • Sat, 01/11/2008 - 11:01

you may have already read it - sami's excellent post headed "Iceland's richest man defends economic record" clarifies.

http://www.icenews.is/index.php/2008/10/30/icelands-richest-man-defends-...

http://www.moneyweek.com/personal-finance/credit-default-swaps-how-to-sp...

hindsight a great thing, hindsight is a terrible (kaup)thing!!


Apologies, can IT correct this spelling?

  • sami
  • 10/10/08 31/05/09
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  • Sat, 01/11/2008 - 08:09

Apologies - I am not really illiterate, just tired. Can you change "new" to "knew"? Thanks!