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Saturday, October 11, 2008

Icelandic Banks

Iceland, population only 300,000. Someone once said that Iceland should be called Greenland because it's so beautiful and green and Greenland should be called Iceland because it's rather cold and forbidding.

Suddenly Iceland is in the news. Ten Universities, cancer hospitals, Building Societies, charities, local councils and even a Cat Protection Agency are suffering severe angst after having invested in the Icelandic banking system.

The British government says it will not cover the accounts but will provide help to individual municipalities that encounter trouble. Yeah, right.

“There are no councils that will run out of money tomorrow or next week, but these are sizable amounts of money,” a spokesman for the Local Government Association said, insisting he not be identified because of the organization’s policy.

Mr Brown got very cranky the other day, he froze the assets of Icelandic banks in Britain and threatened to use anti-terrorist legislation to take over assets of other Icelandic companies in Britain. Heir H. Haarde, Prime Minister of Iceland said Mr Brown’s comments were ‘disconcerting’. Now there’s an understatement.

“We will honour our obligations, but we need some support from the U.K. authorities to do this in a proper way,” Mr. Haarde said. “Clearly, everyone needs to be a little bit flexible.”

Good luck mate.