UK Banks pay £1 billion to compensate Icelandic savers

[Legal Beagles]

On 1st September the UK’s banks will make the first of three multimillion pound payments to cover the costs of the Icelandic banking crisis.

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[labman]

Re: UK Banks pay £1 billion to compensate Icelandic savers

I've very mixed feelings about this. Investments are just that, like stocks or shares they can increase in value or decrease, and it is a risk investors take. However, on the whole I'm pleased people are getting their money back, despite not being able entirely to think how else that money could have been spent.

There were also a good few councils who had substantial savings in the Icelandic banks. Are they, too, protected by this scheme and being bailed out by the government? I know councils need reserves, but the size of some of the deposits held purely in Iceland beggars belief, often from councils who claim to be cash strapped. I wonder how much is invested in other countries financial systems that we don't know about?