GERMAN depositors will get ALL their money back - from Kaupthing's assets

  • julianm
  • 15/10/08 31/05/09
  • a depositor
  • Offline
Posted: Fri, 17/04/2009 - 23:35

I've just received an email from the German action group which I'm a member of to say that they're getting all their money back. There is a news link relating to this. I'm very glad for them as they have fought very hard to keep their plight in the public eye, as have we of course. To read what was in the email (in English) go to:

http://www.kaupthingedge.de/Kaupthing-Edge/Letzte-Nachrichten

HOWEVER, the latter part of the first paragraph says:

"When this repayment has been made, Kaupthing Bank will have repaid all deposits defined by Icelandic law as priority claims, i.e. deposits made at the parent company and at branches belonging to the parent company."

WHAT!!!?

Doesn't KS&FIOM belong to the parent company? Is the hair so thinly split that, although KS&FIOM is owned by Kaupthing hf, we're not actually a branch in the same respect so we don't count? It seems that the parental guarantee which we all relied on is just being brushed under the carpet by this statement. Only days earlier Iceland was talking about providing initially 80% to pay off German depositors from assets some time after April, and now it's the full 100%. Iceland also declined a loan from Germany to cover their deposits earlier in the year suggesting that there are clearly assets to be realised. With this in mind, are Simpson, IOMG, etc still pressing Iceland to honour the guarantee, or have they just given up? There is nothing that I've read that suggests they are pursuing this, but I would be delighted to be corrected. 60% after 2 years for >50k depositors without any further attempt to enforce the guarantee is just not good enough IMO.

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