Protecting UK financial interests in Iceland: Landsbanki, Heritable, and Kaupthing Singer and Friedlander

Following the collapse of Iceland’s major banks the Treasury took decisive action to ensure the stability of the UK financial system and to protect the interests of depositors and taxpayers.

In October 2008, The Chancellor put in place arrangements to ensure that all retail depositors in the Icelandic banks of Landsbanki (including their “Icesave” products), Heritable, and Kaupthing Singer and Friedlander (including their “Edge” products) receive their money in full.

To protect UK economic concerns, the Treasury instigated a freeze on the UK funds of Landsbanki ensuring that the interests of individual depositors are safeguarded and UK creditors of Landsbanki are treated fairly. No other Icelandic banks were affected by the Landsbanki freezing order.

Full details of the announcement can be found in these HM Treasury Press Notices:

Full details of the Landsbanki Freezing Order 2008.

Explanatory Memorandum and to the Landsbanki Freezing (Amendment) Order and Impact Assessment to the Landsbanki Freezing Order. Download from the OPSI website. (PDF)

Information for creditors

The UK Government continues to work closely with the Icelandic authorities to ensure fair treatment for UK depositors and creditors.

Icesave

The Financial Services Compensation Scheme (FSCS) announced on 10 November 2008 that it had made initial contact with UK retail depositors in Icesave, explaining how the payout process will work. The FSCS will then be contacting customers in phases with a view to starting compensation payments in the second week of November as planned.

Additional information on the Icesave payout can be found on the FSCS website.

Heritable and Kaupthing Singer and Friedlander

Heritable, the UK subsidiary of Landsbanki is in administration in the UK.
Kaupthing Singer & Friedlander, the UK subsidiary of Kaupthing also in administration in the UK.
Ernst & Young LLP have been appointed as the administrators for both Heritable and Kaupthing Singer & Friedlander.

Resolution Committees

In accordance with Icelandic law, the Icelandic Financial Supervisory Authority established “Resolution Committees”, sometimes referred to as “Receivership Committees”, for each of the Icelandic banks.
In each case the role of the Committee is to take on all powers of the former directors of the bank and to oversee realisation and protection of assets. The Committee enjoys exclusive power to commence a formal winding-up process for the relevant bank.
The Committees to administer Landsbanki and Glitnir were appointed on the 7th of October 2008 and the Committee to administer Kaupthing was appointed on the 9th of October 2008.
Deloitte & Touche LLP was appointed by each of the Committees, in each case to aid with consultation and communication with creditors.

For further information please use the links below to the respective banks’ websites:

Additional information can be found on the following external websites:

Contact details

Iceland

Resolution Committees

Landsbanki - Landsbanka Íslands hf.

E-mail: creditor.info@landsbanki.is

Lárus Finnbogason, CPA.

Ársæll Hafsteinsson, Solicitor

Einar Jónsson, Solicitor

Lárentsínus Kristjánsson, Barrister

Sigurjón Geirsson, CPA

Glitnir - Glitni banka hf.

E-mail: creditorcontact@glitnirbank.com

Árni Tómasson, CPA.

Heimir Haraldsson,CPA

Steinunn Guðbjartsdóttir, Barrister

Sverrir Örn Þorvaldsson

Ágúst Hrafnkelsson, Internal Auditor

Kaupthing - Kaupþing banka hf.

E-mail: committee@kaupthing.com

Steinar Þór Guðgeirsson, Barrister.

Guðný Arna Sveinsdóttir, BA

Knútur Þórhallsson, CPA

Finnur Sveinbjörnsson, Economist

Bjarki H. Diego, Barrister.

UK

Administrators – Ernst & Young LLP

Heritable 020 7493 6621

Kaupthing Singer & Friedlander UK 020 3205 6800