Replies from Iceland

  • hardyboyz
  • 13/10/08 01/03/10
  • a depositor
  • Offline
Posted: Mon, 20/10/2008 - 19:36

Following a suggestion on this website at the weekend I E Mailed all the members of the Althingi, asking how they were going to provide the parental guarantee of our savings given by Kaupthing.
So far I have one reply, from Ásta R. Jóhannesdóttir, who referred me to their info center. Below is the reply I got from this info center. As far as I can see there is nothing earth shattering at the moment, but others might spot something that I didn't, anyway worth keeping an eye on.

Thank you for your e-mail .
Based on new legislation Act No. 125/2008, the Icelandic Financial Supervisory Authority (FME) has proceeded to take control of Kaupthing. FME has appointed a Resolution Committee for the bank. The Resolution Committee has taken over all matters concerning the bank, including oversight of all treatment of assets and handling of all other business. The Committee is currently working and will start a valuation process as soon as possible.
See news published on FME’s webpage:
Decision of the Financial Supervisory Authority on the appointment of a Receivership Committee for Kaupthing bank hf.
The Financial Supervisory Authority, Iceland (FME) would also like to point out that useful information can often be found on Kaupthing Bank’s webpage.

For further information and updates please visit:

FME´s webpage at:
The Prime Minister’s webpage at:
The Ministry of Finance at:

Information about the Icelandic compensation scheme can be found on the Depositors´ and Investors´ Guarantee Fund’s webpage:
On that webpage there are answers to frequently asked questions:
The Depositors’ and Investors’ Guarantee Fund is a private foundation operating pursuant to Act No. 98/1999.
With regards,

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Further communication from Iceland

  • hardyboyz
  • 13/10/08 01/03/10
  • a depositor
  • Offline
  • Wed, 05/11/2008 - 20:02

I have just received the following E Mail from the Icelandic Info Center.
Not sure if it is a standard response as it also refers to Landsbanki. Seems to be using the EEA agreement to get out of any responsibility. Unfortunately no mention of honouring the parental guarantee. I do not understand the comment suggesting I contact the receivers of Singer and Friedlander bank in London because "the operation in question was runned by its subsidiary". I thought KSF IOM was a subsidary of Kaupthing hf.
Can anyone shed any more light on this?

Dear xxxxxx
The Government of Iceland recognizes the situation described in your e-mail. We unfortunately have to inform you that any possible responsibility of the Icelandic Government as to deposits in branches of Icelandic banks may be based on provisions of the EEA Agreement. As your country is not a Party to the EEA Agreement we advice you, in case of Landsbanki, to turn to the Resolution Committee of that bank through e-mail skilanefnd(?)landsbanki [dot] is.

Regarding Kaupthing you should turn to the receivers of Singer and Friedlander bank in London which is now under administration but the operation in question was runned by its subsidiary.

Otherwise you may be covered by your national insurance scheme.

With Regards,
Information Centre


From: xxxxxx
Sent: 18. október 2008 09:31
Subject: Kaupthing Singer and Freilander (Isle of Man)

Dear Sirs,

I appreciate that you will undoubtedly be very busy at the moment dealing with the impact of the current financial crisis on your country. However I would like to draw your attention to the impact that the failure of Icelandic banks has had on myself and many thousands in a similar position.

I personally stand to lose a significant part of my life savings if Kaupthing Singer and Friedlander (Isle of Man) Limited goes into liquidation. I deposited my money with the Derbyshire Building Society (IoM) several years ago and when KSF acquired this business last year I was assured that my savings would be safe because there was a parental guarantee on my savings from Kaupthing Bank hf.

As the Icelandic government has nationalised Kaupthing Bank, I would appreciate your confirmation that you will now honour this parental guarantee.