Posted on 02/22/2011 5:50:53 AM PST by Chunga85
When Iceland’s online bank, Icesave, failed, the British government stepped in and covered $3.8 billion in deposits that its citizens were owed by the bank. The Dutch government did the same to the tune of another $1.8 billion. Iceland’s three largest banks collapsed as a result of the meltdown in the global financial markets and the result was that the country’s deposit-insurance, like our FDIC, was overwhelmed.
Now, the British and Dutch governments want their money back, but Iceland’s people are saying, well… no, not to put too fine a point on it. You might even say that the Icelanders are saying: “Hell no!”
The BBC is reporting that the British and Dutch governments say they’re disappointed that after over a year and a half trying to reach an agreement, their best offers continue to be rejected.
Most recently, Iceland’s President Olaf Ragnar Grimsson vetoed the latest repayment plan proposed by London, saying that the people along with the Althingi, the name of Iceland’s thousand-year-old Parliament, will decide this matter. The latest deal offered allows for repayment by 2046 at about a 3% APR, which many in Iceland say are egregious terms.
The country’s parliament voted for a referendum on the Icesave bill that is scheduled for March 6th, but the BBC’s story says that Iceland’s government hopes that a deal can be reached before that date, presumably because the people are expected to vote no… again.
cont'd
(Excerpt) Read more at mandelman.ml-implode.com ...
Last time out, back in 2009, 93.2% of Iceland’s voters rejected the bill, and ‘yes’ votes came in third at only 2,599, because 6,744 voters turned in blank ballots. The Icelanders are not happy. Many blame the EU for failing to regulate the bank, and workers interviewed responded by saying things like, and I’m paraphrasing here… “Why should we have to pay for the reckless acts of a handful of greedy bankers?”
Click through...
Only in America ping.
So the British and the Dutch have been burned by Iceland?
A precedent we should remember when other countries or even our own states come begging Uncle Sucker for a bailout.
The Icelandic people should insist that the involved bankers be indicted & tried before repayment is made.
I suspect the Brits & Dutch insisting on repayment will then quietly go away.
People who commit fraud or who drive their business to failure should be punished, not rewarded. Bailouts are rewarding bad behavior. Bailouts are a no-no.
Iceland the soon to be known as ‘Dead Beat Island’! (sarc)
Well it was the depositors who were bailed out i.e. many Icelanders. Now they don’t want to repay the bailout? Tough call but shouldn’t the repayment terms been written into the bailout?
There are other solutions if they don’t want to agree to a bailout. As in the British navy could patrol Icelandic waters permitting British and Dutch vessels to harvest.
Did the voters of Iceland sign a note? Or did some banker or government bureaucrat indicate that the voters would probably repay a loan for which the voters were not actually a party?
The ruling class have become looters as far as I'm concerned.
The people that the British and Dutch governments bailed out where their own citizens who had deposits in the Icelandic banks, not Icelandic depositors themselves (not directly, anyway). But of course, their propping up of the banks indirectly helped the Icelanders.
Iceland is a very feisty, ornery, and independent little country. Should be interesting to watch.
}:-)4
who they gonna call when the borrowed money runs out and the next time their financial system collapses?
People don’t see why they have to pay for rich people’s mistakes. If I ran out of money, would the bank bail me out? They’d throw me out on the street.
Its time the banks lesson that lesson.
Actually, I don't blame them for not wanting to pay the tab.
When one considers that the prospect of having one's house, goods, and chattel sold off and living one's life in bondage, sold (along with their issue) to pay their debts, once served as a deterrent to financial recklessness, the absence of such servitude in our modern times and the bondage of an entire nation for the actions of a few individuals is indeed an unsavory prospect.
If the few will be rewarded, the few should take the risks.
If they merely take the rewards and stick the country with the tab, they should be faced with the very real prospect of being hunted to the ends of the earth.
I know they won’t be calling American accounting firms or Moody who both declared everything peaches and cream until it all fell apart.
>>So the British and the Dutch have been burned by Iceland?<<
No, they were burned by investing in banks that failed. Their beef is with the banks.
>>I would feel morally obligated to repay any debt for which I signed a note.<<
I’m the same way. After my divorce in the late 90’s and some financial difficulty that naturally followed, an attorney recommended filing for bankruptcy, but we felt obligated.
However, if I had a secured loan, I’d either sell the security and pay back the loan or simply give back the security and be done with it. That is why banks ask for 20% down on a home loan - to ensure you have skin in the game. Giving people a 100% (or more) loan for a piece of real estate is rather risky. As many banks have learned.
Why? Iceland is not part of the EU.
I think the arrogance is what makes me most angry.
Big download. I’ll better try this from home tonight.
Privatize the gains, socialize the losses. What a plan!
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.