Telegraph: Icesave Ruling Costs U.K. Taxpayers GBP 100m

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Telegraph: Icesave Ruling Costs U.K. Taxpayers GBP 100m

The international media continue to report on yesterday’s verdict by the EFTA Court that Iceland had won both its cases in the Icesave trial.

telegraph_icesave

While the news was widely celebrated in Iceland, reactions were different among some abroad.

Below is an extract from the Telegraph:

“UK taxpayers have been left more than GBP 100m out of pocket after a European court ruled that the Icelandic government had no obligation to repay Britain and the Netherlands for rescuing depositors in failed bank Icesave.”

The article goes on to say that a bank’s host nation has no responsibility for foreign depositors.

“The ruling also makes a mockery of the cross-border European banking rules. Governments are currently prohibited from stopping a bank operating in the country while remaining subject to the host nation’s regulator. The court ruling means that host nations have no responsibility for foreign depositors in the event of a collapse.”

Click here for more on the Icesave verdict.

PS