This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/uk_politics/7664853.stm
The article has changed 5 times. There is an RSS feed of changes available.
Version 1 | Version 2 |
---|---|
Deal sought for UK-Iceland funds | Deal sought for UK-Iceland funds |
(about 3 hours later) | |
A Treasury delegation is in Reykjavik for talks to resolve the dispute over frozen UK investments held in failed Icelandic banks. | |
The group wants to establish a claims procedure for British depositors to get their money back as soon as possible. | The group wants to establish a claims procedure for British depositors to get their money back as soon as possible. |
A cancer hospital in Manchester has announced it is the latest victim of the Icelandic bank collapse. | A cancer hospital in Manchester has announced it is the latest victim of the Icelandic bank collapse. |
Meanwhile, Chancellor Alistair Darling is continuing talks with the G7 finance ministers in Washington. | Meanwhile, Chancellor Alistair Darling is continuing talks with the G7 finance ministers in Washington. |
The Treasury delegation in Reykjavik includes officials from the Bank of England and the Financial Services Authority. The talks are expected to last all weekend. | |
Britain is demanding the recovery of funds deposited by local councils, as well as other public bodies, companies and charities in collapsed Icelandic banks. | Britain is demanding the recovery of funds deposited by local councils, as well as other public bodies, companies and charities in collapsed Icelandic banks. |
After the Icelandic government took control of three of its leading banks, Prime Minister Gordon Brown strongly condemned Iceland's failure to guarantee British deposits. | After the Icelandic government took control of three of its leading banks, Prime Minister Gordon Brown strongly condemned Iceland's failure to guarantee British deposits. |
Under Iceland's financial regulations, the government is supposed to pay up to £16,000 compensation per account at a total cost of £2.2bn. | |
More casualties | More casualties |
Sharp exchanges ensued between Mr Brown and his Icelandic counterpart Geir Haarde but the countries now say they will work together for a solution. | Sharp exchanges ensued between Mr Brown and his Icelandic counterpart Geir Haarde but the countries now say they will work together for a solution. |
Mr Haarde said the government had introduced legislation, making the claims of depositors a high priority in apportioning the nationalised bank's assets. | Mr Haarde said the government had introduced legislation, making the claims of depositors a high priority in apportioning the nationalised bank's assets. |
However, Iceland is crippled with debt and giving UK depositors their funds may depend on the country securing emergency loans from other countries or the International Monetary Fund (IMF). | However, Iceland is crippled with debt and giving UK depositors their funds may depend on the country securing emergency loans from other countries or the International Monetary Fund (IMF). |
The Treasury said it wanted to "find a solution" to the crisis to protect UK depositors and enable councils and other bodies with money at stake to recover it as "quickly as possible". | The Treasury said it wanted to "find a solution" to the crisis to protect UK depositors and enable councils and other bodies with money at stake to recover it as "quickly as possible". |
Private deposits with collapsed banks Kaupthing Singer and Friedlander (KSF) and Heritable have been sold to ING Direct, where the accounts should continue to operate normally. | |
Private customers with Icesave are protected by the UK's Financial Services Compensation Scheme, with Mr Darling promising compensation above the usual £50,000 limit to cover all deposits. | |
Charity fears | Charity fears |
The Christie NHS Foundation Trust, based in Withington, Manchester, has revealed it could lose £7.5 million. | The Christie NHS Foundation Trust, based in Withington, Manchester, has revealed it could lose £7.5 million. |
It said the bulk of the money - £6.5 million - was made up of charity donations while the remainder deposited with Icelandic banks Kaupthing Singer and Friedlander had come from the NHS. | It said the bulk of the money - £6.5 million - was made up of charity donations while the remainder deposited with Icelandic banks Kaupthing Singer and Friedlander had come from the NHS. |
So far more than 100 local authorities in England, Wales and Scotland have revealed they have deposits worth £842.5m in total. | So far more than 100 local authorities in England, Wales and Scotland have revealed they have deposits worth £842.5m in total. |
And at least 60 UK charities fear they may have lost up to £120m of funds invested in failed Icelandic banks. | And at least 60 UK charities fear they may have lost up to £120m of funds invested in failed Icelandic banks. |
Meanwhile, finance ministers from the G7 group of leading industrialised nations have pledged action to tackle the financial crisis. | Meanwhile, finance ministers from the G7 group of leading industrialised nations have pledged action to tackle the financial crisis. |
They issued a five-point plan of "decisive action" to unfreeze credit markets. | They issued a five-point plan of "decisive action" to unfreeze credit markets. |