Banking Crisis: The Impact of the Failure of the Icelandic Banks; Fifth Report of Session 2008-09; Report, Together with Formal Minutes

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The Stationery Office, 2009 - Political Science - 52 pages
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In this report, the first in a series on the banking crisis, the Treasury Committee considers the impact of the failure of the Icelandic banks on three sets of depositors: local authorities, charities and UK citizens who deposited in the Isle of Man and Guernsey subsidiaries of the Icelandic banks. It considers the case for the provision of assistance by the UK Government to each of these depositors. The Committee does not accept that there is a need to provide assistance to the local authorities. It does however recommend that, on this occasion only, all charities should be compensated for losses incurred as a consequence of the failures of the Icelandic banks. Finally, it agrees that the overarching principle should be that the UK Government cannot provide cover for deposits held by British citizens in jurisdictions outside the direct control of the United Kingdom. As such, while acknowledging the severe distress of those UK citizens suffering due to the Icelandic banking failure, the Committee can only recommend that the UK authorities work with the Isle of Man and Guernsey authorities to resolve these issues. This aspect of the Committee's Banking Crisis inquiry has also raised many new questions about issues such as consumer advice and cross-border regulation of financial institutions. Considerable taxpayer support has been required to provide rapid compensation to onshore UK depositors in Icelandic banks that were 'passported' into the UK regulatory system. This area of European law requires further consideration, and the Committee intends to return to it in a future inquiry into the banking crisis within its international context.
 

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I was an ordinary depositor living in the UK putting what I thought and lead to believe a solvent Bank KSFIOM. Using this bank to take advantage of Interest rates advertised by money supermarket @7%.. My funds fairly substantial sum from the sale of my property.. Was wiped over night. This left my daughter of 16 and myself homeless.
Treated appallingly by Southampton City Council when asking for help to be rehoused. Treated me unfairly and would not help when I pleaded, in our time of dire need. So I went to the BBC radio South and they confirmed my plea to SCC ..the actions of the British Government caused me great hardship over the last 6 3/4 yrs, and my health has suffered people have committed suicide over the financial losses.This is a situation I will never forget and the fact I was insulted by the staff at Southampton City Council in the Town where I was born.. The Fault lay purely at the door of the British Treasury.
 

Contents

Report Page
3
What happened in October 2008?
17
Charities and local authorities
27
Protecting British citizens
33
Conclusions and recommendations
45

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