KSFIOM action group blames UK govt for compounding Icelandic crisis

Posted 23/10/2008 - 14:02 by VikingRaider

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2008-10-22 (All day)

The Kaupthing Singer & Friedlander Isle Of Man action group has accused the Government of exacerbating the Icelandic banking crisis, following an audience with the Icelandic embassy yesterday.
On October 8, it says Alistair Darling stated publicly that the Icelandic government had informed the UK authorities that it had no intention of honouring its obligations in the UK.
However, discussions with the Icelandic ambassador yesterday reveal that the Icelandic government denies any such message was conveyed. According to the group’s findings, the UK government cannot supply the name of the person in the Icelandic government that supposedly delivered the message.

KSFIOM action group say the Icelandic government maintains that it was this unsubstantiated statement that set in motion the events leading up to the failure of Icelandic banks in the UK. It says: “The actions of the UK government helped destroy belief in the Icelandic economy and caused a run on Kaupthing UK.

"This may well still have happened but as with the other UK banks who have been in trouble, other arrangements could have been put in place to protect British savers.”

As a result of recent events and discussions with the Icelandic ambassador the KSFIOM action group has forwarded the questions to the Treasury Select Committee and requested they be put to the Chancellor of the Exchequer.