Economic Disaster Area » Gordon Brown

Financial Times: Iceland criticises IMF, UK and Dutch

Dadi — Tue, 06 Oct 2009 08:43:03 +0000

Ms Sigurdardottir said that it was “unfair” that the IMF and Nordic donors had made access to additional aid conditional on Iceland’s resolving the Icesave issue. But the prime minister voiced hope that the IMF review would start “within the next few weeks”.

In written answers to FT questions, she said that the UK and Dutch authorities “cannot wash their hands” of regulatory responsibility for the failures of Icelandic banks that operated in Britain and the Netherlands.

She suggested that the UK was contradicting Mr Brown’s own principles by making Icelanders pay for the mistakes of a private Icelandic bank. “The British prime minister has said that it’s not the general public that should suffer from the wrongdoings of the banks but the banks should compensate the public. Obviously he does not count the Icelandic public in [that].”

From the Financial Times

About time!

FT: In The Same Boat

Dadi — Wed, 12 Aug 2009 15:52:29 +0000

Some compare the plan to the Versailles treaty’s harsh demands of Germany. A better analogy is the 1982 Latin American debt crisis, in which even Chile, poster boy of Chicago School economics, saw the state take over a mountain of private debt. A decade of stagnation followed. The same could be in store for Iceland.

Would that benefit anyone? It would alienate the Icelandic people, already angered by Gordon Brown’s use of anti-terror laws to freeze Icelandic assets. Icelanders’ support for the recent application to join the European Union is rapidly cooling. The risk is an Iceland geopolitically adrift with its strategic location and important natural resources. Russia is no doubt paying attention: it was the first to offer Iceland economic assistance.

From the Financial Times

IceSave In A Nutshell

Dadi — Wed, 10 Jun 2009 08:40:55 +0000

“Foreign journalists (not Icelandic ones, except for maybe Egill Helgason), Icelandic and foreign specialists, foreign leaders, including Gordon Brown had said from 2006: “this isn’t going to work, you have to do something”. Althingi didn’t do anything, the government didn’t do anything, the Central Bank didn’t do anything, the Financial Authorities didn’t do anything and we didn’t do anything, until everything had collapsed. That is why we are responsible. ”

From Stefan Benediktsson’s blog

Gordon Brown The Politician

Dadi — Fri, 08 May 2009 16:47:21 +0000

Yes, the Icelandic banks have left a lot of damage. But Gordon Brown should not use them to divert from his own problems.
Owned by Icelandic bank Kaupthing its UK operation of Kaupthing Singer & Friedlander operated as a British bank, supposed to be supervised by the UK Financial Supervisory Authority. The UK government has made no claims to the Icelandic government for this bank.

A Letter to Graham Brady: Gordon Brown Lied To You

Dadi — Fri, 08 May 2009 09:12:36 +0000

“Dear Mr.Graham Brady:

I am an Icelandic citizen and like so many citizens from both my country and the UK, I am absolutely appalled by the havoc irresponsible bankers have wrought on our societies. I am also extremely bothered by the lack of regulatory supervision by the Icelandic banking regulatory authorities that helped create our crisis.I am writing you today to bring a serious matter to your attention. The campaign to recover the funds for the cancer charity at Christie’s has all my support as news of great financial loss by various charities, research funds and universities that did business with Landsbanki’s IceSave and Kaupthing Singer & Friedlander has saddened me.

It was nevertheless quite disturbing to witness the UK Prime Minister’s response to your question in the House of Commons where he implied that the UK regulatory authorities were not responsible in the Christie case. Mr. Brown said: “The fact is we are not the regulatory authority.” This is false.

Christie’s business was with Kaupthing Singer & Friedlander, a bank that was under UK regulatory authority and was regulated by the FSA. This is
clearly stated in the Treasury Committee report dated 04/04/09:

“Kaupthing Singer & Friedlander was a subsidiary of Kaupthing Bank hf, and
was therefore regulated by the FSA, and covered by the UK depositor
protection scheme, the Financial Services Compensation Scheme (FSCS).”
(From Treasury Committee – Fifth Report:

http://www.publications.parliament.uk/pa/cm200809/cmselect/cmtreasy/402/40202.htm ).

It is a serious matter if the PM deliberately lies to the House of Commons about this basic fact. In his reply to your excellent question he is shuns responsibility and blames the Icelandic authorities for harming a Charity that is by law protected by the UK authorities. This particular case has nothing to do with Iceland, the Icelandic government, the Icelandic people or the IMF.

I sincerely hope that you will address this issue again with the PM in the House of Commons.

The entire population of Iceland is suffering greatly because of reckless bankers, as are other citizens in the world. We are ashamed of the people who caused our collapse and directly affected us and UK citizens, businesses and government bodies.

We are nevertheless not to blame for the Christie travesty. Prime Minister Brown will need to be confronted and take responsibility in the tragic Christy case.

Sincerely,
Magnus
Citizen of Iceland”

A letter sent to Graham Brady http://www.grahambradymp.co.uk/ by an Icelandic citizen.

Gordon Brown The Clown

Dadi — Fri, 08 May 2009 08:29:46 +0000

Speaking during Prime Minister’s Question Time, Mr Brown said he was also worried about Christie’s but there were many more people affected and the issue must be looked at “in the round”.

He added: “I visited the nurses at Christie’s hospital when I was in the North. The fact is we are not the regulatory authority.

“The first priority is for the Icelandic authorities to pay up. That is why we are in negotiations with the IMF and other authorities about the rate of which Iceland can repay the losses that they are responsible for.

From the Rochdale News

So how big trouble is Brown in? Unlike Landsbankinn’s IceSave, Kaupthing S&F was operating under British law, a British bank in effect and the Icelandic government has no obligations towards the losses suffered from it. In fact there has been no such claim on the behalf of the UK authorities.

Asked about Brown’s comments, Franek Rozwadowski, IMF’s representative in Iceland says it is absolutely wrong that the IMF is having such talks with the UK. It is a matter between the UK and Iceland.

Makes Brown look like a right clown.