FSCS to borrow more from Bank of England for Icelandic crisis

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2008-10-13 (All day)

The Treasury will this week unveil the terms of a fresh loan by the Bank to the FSCS in order to protect UK depositors who hold £4.8 billion in the Icesave account of Landsbanki, Iceland’s second biggest bank which last week was nationalised before going into receivership.
Chancellor Alistair Darling indicated that the government would go beyond the FSCS and protect all UK depositors of overseas banks, saying it would do what it could to safeguard savers. The FSA has declared both Landsbanki and Kaupthing, Iceland’s biggest bank, which was also nationalised last week, in default