The European Tribune is a forum for thoughtful dialogue of European and international issues. You are invited to post comments and your own articles.
Please REGISTER to post.
Eu-member or in this case EEA member and your banks can operate everywhere. meanwhile they are still regulated and deposit-insured by their national states.
As Iceland demonstrates, that is a bad rule.
and up to a point Ireland shows, is a problem.
No depositors have so far been in danger in Ireland - only bondholders who should lose their shirts.
And once you have opened for savers out of other EU-countries, they are as senior as your domestic savers and you have to treat both the same way.
No, they really shouldn't.
The British depositors can still petition their own government for restitution. Since the British government is more likely to cover British depositors than Icelandic depositors, the Icelandic government is justified in giving domestic depositors preferential treatment.
Management and bondholders should, of course, lose their shirts no matter their nationality.
Austerity can only be implemented in the shadow of a concentration camp.
The Directive imposes a minimum guarantee of 20,000 per depositor; moves to increase this minimum to 50,000 or even higher had been agreed politically before the Icelandic crisis, but had not been incorporated into EU law, much less into EEA law. The Tryggingarsjóður guarantees 1.7 million krónur on the basis of a fixed euro-króna exchange rate, equivalent to 20,887. The Netherlands and the UK have higher guarantee levels, 100,000 and £50,000 (approx. 60,000) respectively; Landsbanki was a member of the Dutch and British compensation schemes for the purposes of guaranteeing this difference in cover, an arrangement known in Britain as the "passport system", and commonly used by banks throughout the EEA. In addition, the UK Treasury has exceptionally guaranteed retail deposits in excess of £50,000 which were held in Icelandic-owned banks in the UK at the time of the crisis, at a cost of some £1.4 billion (1.7bn).
by Migeru - Jun 15 39 comments
by Frank Schnittger - Jun 17 20 comments
by Katrin - Jun 12 88 comments
by Jerome a Paris - Jun 9 68 comments
by DoDo - Jun 9 22 comments
by Zwackus - Jun 11 64 comments
by Metatone - Jun 8 4 comments
by Ted Welch - Jun 3 1 comment
by Frank Schnittger - Jun 1720 comments
by Migeru - Jun 1539 comments
by Katrin - Jun 1288 comments
by DoDo - Jun 1126 comments
by Zwackus - Jun 1164 comments
by Jerome a Paris - Jun 968 comments
by DoDo - Jun 922 comments
by Metatone - Jun 84 comments
by DoDo - Jun 671 comments
by DoDo - Jun 417 comments
by Ted Welch - Jun 31 comment
by gmoke - Jun 211 comments
by Frank Schnittger - May 3113 comments
by A swedish kind of death - May 3113 comments
by ceebs - May 2927 comments
by ARGeezer - May 2915 comments
by Zwackus - May 271 comment
by DoDo - May 2631 comments
by DoDo - May 2346 comments
by Metatone - May 1490 comments