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But they did, this is due to rules pertaining to the European Economic Area. Whose fault those rules are is a different question - and I can understand that it is hard to feel sympathy for the Brits who are simultaneously working against meaningful forms of regulation on banks and hedge funds.

The fact that Icelandic citizens have to pay up has to do with the actions of the previous Icelandic government, which decided to nationalise the banks and apply for an IMF credit rather than letting the banks and the country simply go bankrupt and wipe out the savings of Icelanders and foreigners alike.

The main principle here is discrimination. The Icelandic government saw fit to protect savers in Iceland itself but not foreign savers. This is not something you can do in an 'economic area' where your companies can operate abroad without subjecting themselves to the protection regimes abroad.

The British and Dutch are already letting Iceland off the hook for pragmatic purposes, they would be in a good legal position to ask for than what they are getting.

by nanne (zwaerdenmaecker@gmail.com) on Tue Aug 18th, 2009 at 07:34:04 AM EST
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