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Iceland says it was "bullied" over bank debt

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posted on Sep, 6 2011 @ 01:32 AM
Yet another example of why not to trust your Gov't. and here is Iceland a tiny
little place compared to many much larger Countries standing up to the
bullies and saying No. I like this.

REYKJAVIK | Sun Sep 4, 2011 3:46pm EDT
(Reuters) - Iceland's president accused European countries on Sunday of having bullied it into agreeing to guarantee repayment of the debts of a failed bank, reviving a dispute with Britain and the Netherlands whose citizens are owed billions.

When Iceland's banking sector collapsed in the 2008 global financial crisis, accounts were frozen at the bank Landsbanki, which had accepted deposits from British and Dutch savers through online funds called Icesave.

Iceland says the estate of the failed bank will be enough to repay about $5 billion of debt to the British and the Dutch. The two countries had wanted the government in Reykjavik to give a state guarantee to the repayment.

In a referendum earlier this year, Icelanders rejected for a second time giving a guarantee.

"People (in the government) bowed to the bullying of the Europeans ...," President Olafur Ragnar Grimsson told RUV public radio. He said the British and Dutch demand that the government guarantee the debt had been "absurd."

"So, what is happening now is proving that if the issue had been handled sensibly here from the beginning, it would have been totally unnecessary to put the people of Iceland and our cooperation with Europe into this straightjacket," he said.

"The EU should investigate and face up to how in the world it was possible that EU member states agreed to support this absurd claim against Iceland," he said.

The British and Dutch, with the support of other EU nations, had also persuaded the International Monetary Fund to pressure Iceland, Grimsson said, adding that former IMF managing director Dominique Strauss-Kahn told him in January 2010 he was unhappy that the Fund was being used as a "fist" against Iceland.

Since the 2008 global financial crisis, Iceland had to accept a bailout led by the IMF, accompanied by a programme of economic reforms which have just been completed.

The administrators of Landsbanki have said the estate of the bank can more than repay the British and Dutch. They have said the payments can begin later this year after final domestic legal action is out of the way.

(Reporting by Omar Valdimarsson; Editing by Patrick Lannin and Peter Graff)

posted on Sep, 6 2011 @ 02:30 AM
Rather than trying to divert away the attention of accusing Europe of pressuring them into something perhaps they should look at WHY their government was allowing an obviously failing bank to continue doing business.

Once that's settled they can look into this whole thing but I feel they aren't taking responsibility enough for their own actions.

posted on Sep, 6 2011 @ 02:49 AM
reply to post by awareness10

This came up a fair bit a few months ago.
I applaud Iceland! Two referendums (is one not enough?) giving a clear message from the people saying-
'Why should the tax payer foot the bill of a failed private company?'

What exactly has a private company got to do with normal people on the street?
By that rationale then if McDonalds goes down the tubes in my country I should be taxed to bail it out or at least get my government to 'guarantee' its return to profitability?

THATS whats wrong with the world!
The fact that Iceland could be bullied in this situation is appalling!

posted on Sep, 6 2011 @ 02:53 AM
I have a good idea.

Why don't those ultra-rich owners of these private banking institutions pay back the people they ripped off ?

This is essentially a case of the people being liable to repay the victims of a mass Ponzi scheme.

The 2008–2011 Icelandic financial crisis is a major ongoing economic and political crisis in Iceland that involves the collapse of all three of the country's major commercial banks following their difficulties in refinancing their short-term debt and a run on deposits in the United Kingdom.


Ok let me get this straight. If I start a bank, and loan out 10 times the amount of money that I have cash on hand, and people start asking for cash and I get exposed and go under....than the citizens will repay the debt and I can keep all the loot I collected in the process?

I should have aimed for becoming a banker when I was a kid. This sounds like the best gig ever.

posted on Sep, 6 2011 @ 05:42 AM
Iceland was the testing grounds for the recession.... They were one of the fastest growing economies in the world, everyone there was wealthy....

All of you people who blame the Banks, Houseing, Big Oil etc.... are not in touch with reality...

Quick question who regulates all those things i just mentioned???? anybody???

THE FEDERAL RESERVE... Growing up I always believed that was a place they just keep all the gold bricks....

The Reserve is what loans money to the banks, houseing, etc..... They are the ones who set the interest rates that was the main cause of the collapse... they have the ability to print money as long as it is a good investment for them, not what will benifit the people..

If something goes wrong what should you do? Go over the situation from block 1 THE FEDERAL RESERVE!!!!!!!!!
what did the US do? skipped them completley because they are who prints the money for the Government instead they went after the Banks and Houseing, but they cant stand up for them selves, WHY? again the Reserve controlls their interest rates and what loans they get...

Dont bite the hand that feeds ya!!!
but put that hand in my face and ill chop that # off...

posted on Sep, 6 2011 @ 06:01 AM
reply to post by lyrc07

All of you people who blame the Banks, Houseing, Big Oil etc.... are not in touch with reality...

o really?

THE FEDERAL RESERVE... Growing up I always believed that was a place they just keep all the gold bricks....

so the Federeal Reserve isn't a bank? hmm....

Dont bite the hand that feeds ya!!!

nope, you chew it off at the wrist

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