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Written question asked by Lord Laird (Ulster Unionist Party), in the House of Lords. It was answered by Lord Sassoon (Conservative) on Monday, 14 February 2011.

Banking: Iceland

Question
To ask Her Majesty’s Government, further to the Written Answer by Lord Sassoon on 15 December 2010 (WA 182–3), whether money has been recovered from the three failed Icelandic banks' administration processes; if so, how much; and what are the time spans estimated by Ernst & Young for recovering money from Heritable Bank Plc, Kaupthing Singer & Friedlander, and the Landsbanki Resolution Committee.
Answer

Details of dividends received in the 2009-10 financial year from the Icelandic bank administration processes are set out in the Treasury’s Resource Accounts for 2009-10 (HC261). In the 2009-10 financial year, about £194 million was received from the Heritable administration. Ernst & Young does not anticipate the residential mortgage book to be realised prior to October 2011 when the period of administration ends. To date, 50p in the pound has been paid. In order to recover the remainder of the forecast estimated outcome, the administrators will continue to discuss the strategy for maximizing the realisation of the remaining assets with the creditors’ committee. It has not yet been possible for them to forecast a date for the final return to creditors. In the 2009-2010 financial year, about £1 billion was received from the Kaupthing Singer & Friedlander administration. Ernst & Young expects that a significant proportion of the forecast dividends will be paid by October 2012. 53p in the pound has been recovered to date. Certain longer-term assets are not expected to be fully realised by October 2012. Ernst & Young will continue to work with the creditors’ committee on a strategy for the realisation of these assets. The company has stated that, consequently, it is not possible at the current time to forecast a date for the final return to creditors. Recoveries are yet to be received from the Icesave administration. The Financial Services Compensation Scheme has made a claim in the winding up in Iceland which is subject to litigation there. Details of dividends received in the 2010-11 financial year will be published in the Treasury’s Resource Accounts for 2010-11 later this year.

Secondary information

Type
Written question
Reference
6592; 725 c101-2WA
Session
2010-12
Related items
Banking: Iceland
Wednesday, 15 December 2010
Written questions
House of Lords
Banking: Iceland
Monday, 11 July 2011
Written questions
House of Lords
Subjects
Compensation Banks Insolvency Iceland Landsbanki Kaupthing Singer and Friedlander Heritable Bank
Link
View this Written question on www.publications.parliament.uk