Steingrimur J. Sigfusson minister of finance claimed in the first discussions about the government responsibility of the Icesave contracts, that the eleven billion króna which the Landsbanki was sold for way back are the most expensive billion króna of the history.

Steingrimur reviewed the prehistory of the case and pointed out that Landsbanki had collected into the accounts in its neighbor countries through branches, but subsidiaries.

"It would have changed everything if Landsbanki had used the subsidiary in England," said Steingrimur and added that there is no difference in those branches and the branch in Breidholt.

"The banks themselves amongst other with advertisements assured the clients that there was nothing to be afraid of, the Icelandic government did the same amongst other with writing letters and holding introduction meetings."

The minister said the last months before the bank collapse had been expensive for the Icelandic economy as the Landsbanki had started its Icesave operations in the Netherlands in May last year. Close to a billion euro had been deposited into Icesave during that time.

Steingrimur has not finished his starting speech but in the list of speakers are already 24 parliamentarians. It is clear that the discussions are going to continue into the night.

All documents regarding the contract between Iceland and England and the Netherlands because of the responsibilities of the Icesave accounts of Landsbanki Islands are accessible in the information website of the government.

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Its wasn't a mistake, just a desperate gamblers last roll of the dice.
written by Peter, July 06, 2009

"It would have changed everything if Landsbanki had used the subsidiary in England," said Steingrimur and added that there is no difference in those branches and the branch in Breidholt."

The only difference being that the UK, Dutch and German regulators would have stopped the Icelandic banks opening in their countries.

What is little discussed is how the Icelandic government connived with the bank to by pass the local regulators in a desperate attempt to shore up its banks which were already doomed. Even after stealing billions of euro's the banks still failed, but those billions have to be repaid.

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