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The Darling-Mathiesen Conversationbefore
Britain Used the Anti-Terrorism Legislation against Iceland
The day after this conversation British authorities froze the assets of Icelandic banks in the UK by invoking an anti-terrorism legislation. According to Icelandic newspaper Morgunbladid on October 9, this conversation is what sparked the actions of the British authorities, based on information from their sources in the British Chancellery.
From Icelandic Sources!
Mathiesen: Hello.
Darling: Hello.
Mathiesen: This is Árni Mathiesen, Minister of Finance.
Darling: Hello, we met a few months ago, weeks ago.
Mathiesen: No, we have never met. You met the Minister of Trade.
Darling: Alright, sorry.
Mathiesen: No problem.
Darling: Thank you for taking the call. As you know, we have a huge problem with Landsbanki, we have a branch here, which has got four billion pounds worth of deposits and it has now been shut and I need to know exactly what you are doing in relation to it. Could you explain that to me?
Mathiesen: Yes, this was explained in a letter we sent the night before last from the Trade Ministry. Since then, we have set out a new legislation where we are prioritizing the deposits and where we are giving the FME, the Icelandic FSA authorities, the authority to go into banks, similar legislation to what you have in England, and the Landsbanki is now under the control of the FME, and they are in the process of working out how to do these things, but I think this legislation will help in solving this problem.
Darling: What about the depositors you have got who have got deposits in London branches?
Mathiesen: We have the insurance fund according to the Directive and how that works is explained in this letter and the pledge of support from the government to the fund.
Darling: So the entitlements the people have, which I think is about sixteen thousand pounds, they will be paid that?
Mathiesen: Well, I hope that will be the case. I cannot visibly state that or guarantee that now, but we are certainly working to solve this issue. This is something we really don’t want to have hanging over us.
Darling: People are asking us already, what is happening there? When will you work that through?
Mathiesen: Well, I really can’t say. But I think it is the best thing that the FSA be in close touch with the FME about this to see how the timeline works out in this.
Darling: Do I understand that you guarantee the deposits of Icelandic depositors?
Mathiesen: Yes, we guarantee the deposits in the banks and branches here in Iceland.
Darling: But not the branches outside Iceland?
Mathiesen: No, not outside of what was already in the letter that we sent.
Darling: But is that not in breach of the EEA-treaty?
Mathiesen: No, we don’t think so and think this is actually in line with what other countries have been doing over recent days.
Darling: Well, we didn’t when we had the problem with Northern Rock. It didn’t matter where you saved money, we guaranteed your savings.
Mathiesen: Well, yes, that was actually in the beginning at least debated. I am sure you cleared that up in the end.
Darling: The problem, I do understand your problem, the problem is that you have people who put their money into a bank here and they are finding that you have decided not to look after their interests. This would be extremely damaging to Iceland in the future.
Mathiesen: Yes, we realize that and we will be trying as we possibly can to make this not a problem. We are in a very, very difficult situation ...
Darling: I can see that ...
Mathiesen: ... and just this week, since we can’t cure the domestic situation we can’t really do anything about things that are abroad. So we must first deal with the domestic situation, and then we will certainly try to do what we possibly can, and I am personally optimistic that the legislation that we passed last night will strengthen this part of it. And we, of course, realize what could happen and don’t want to be in ...
Darling: yes ...
Mathiesen: but the point is also, Chancellor, that we have for months been trying to talk to everybody around us and trying to tell them that we were in trouble and ask them for support and we have actually gotten very little support.
Darling: I understand that, but I have to say that when I met your colleague and these others, basically, what we were told turns out not to have been right. I was very concerned about the London banking position and the kept saying there was nothing to worry about. And you know, with the position we are now in, there will be a lot of people in this country who put money in and who stand to lose an awful lot of money and they will find it difficult to understand how that has happened.
Mathiesen: Well, I hope that won’t be the case. I wasn’t at the meeting, so I can’t say ...
Darling: Well, I know that. Can you tell me this, if the insurance fund you refer to, does it have money to pay out?
Mathiesen: They have some money, but as is with most of these funds, it is very limited compared to the exposure.
Darling: Yeah, so you don’t know. See, I need to know this, in terms of what I tell people. It is quite possible that there is not enough money in that fund. Is that right?
Mathiesen: Well, yes, that is quite possible.
Speaking generally about Iceland's financial system, S&P wrote:
"Due in part to banks' financing of their own rapid expansion abroad as well as that of several local entrepreneurs, net external debt of the financial system has risen to 362 percent of current account receipts in 2007, from 161 percent in 2003."
"Domestic credit to GDP, meanwhile, has risen to over 384 percent from 130 percent in the same period. These are among the highest ratios for rated sovereigns," S&P said.
Originally posted by Lastone
reply to post by full997
You are forgetting one think...
Snip
Originally posted by full997
If economic pressure really is a war then i make no appologies for hoping that my country wins.
As far as remembering what i wrote today, well if things turn bad then i will fall back on the old saying - "if you can't beat them, join them".
I am an Englishman in that i was born and raised in England and i am also a Britishman in that England is a part of Britain.
So i am both English and British.
Back on topic no matter what happens i hope that things work out for the best for both Britain and Iceland, but if it comes down to a choice of either Britain or Iceland come out on top and only one country can 'win' then i hope that it is Britain.
Originally posted by Lastone
reply to post by FIFIGI
Sorry...
But think...
Do you think that in England they didn't know that by taking down the Iceland maket ... banks.. economy ... it would cause the problems it did ???
They did... and that was the intention. If they need to take the Englishman money ... taxe payers money, what a better way to do it if not by blaming it on another country ?? Ask yourself this... who is going to pay for all the money they are giving to banks ?? Who is loosing money ..banks??
No..... the English people is... and that was what they wanted.
They cause the problem.... they blame it to another one (terrorist) or (Iceland) ... they give you the solution (as the only think to do after what those bastards did )...... and YOU go for it.
Open your eyes people... over and over again the same play and you still not se it ??
Originally posted by FIFIGI
reply to post by Man_Versus_AntiMan
Oah, I see. You think this all happened by accident or mismanagement and there was a decision made because of this "serious situation" to win polls....Trust me there are very few dumb people at the top of the power pyramid. You have to look beyond your "eye opening" statement. You have probably gathered that Mr Brown is at the very bottom of it - a puppet.....All this was planned looong time ago.
Originally posted by Man_Versus_AntiMan
Originally posted by FIFIGI
reply to post by Man_Versus_AntiMan
Oah, I see. You think this all happened by accident or mismanagement and there was a decision made because of this "serious situation" to win polls....Trust me there are very few dumb people at the top of the power pyramid. You have to look beyond your "eye opening" statement. You have probably gathered that Mr Brown is at the very bottom of it - a puppet.....All this was planned looong time ago.
Anyone who believes this was premeditated a long time ago, or believes this is a precursor to some global genocide, or a mineral grab for arctic oil, is frankly not a passenger on HMS Reality.