Written question asked by Lord Laird (Ulster Unionist Party), in the House of Lords. It was answered by Lord Sassoon (Conservative) on Monday, 21 November 2011.
Banking: Iceland
- Question
- To ask Her Majesty’s Government, further to the Written Answer by Lord Sassoon on 31 October (WA 192), whether and how they intend to levy on the United Kingdom financial services sector the shortfall of the unrecovered amount of compensationpaid to Landsbanki depositors; when they estimate the levy would be imposed; and what proportion and amount the United Kingdom's claim to the Landsbanki estate represents.
- Answer
-
In November 2008, following the Financial Services Authority's announcement that the UK branch of Landsbanki was in default, the Financial Services Compensation Scheme (FSCS) began payouts to UK depositors with Icesave. The FSCS made payments of approx. £4.5 billion to UK depositors in Icesave. These payments were made up of three different tranches: £2.3 billion for deposit balances up to €20,887 (£16,872) which should have been paid by the Icelandic Depositors and Investor Guarantee Fund (DIGF); £1.4 billion for deposit balances above £16,872 and below £50,000, for which the FSCS is liable; and £0.8 billion for deposit balances above £50,000, for which HM Treasury is liable. We expect full recovery of the £2.3 billion for which Iceland is liable. The FSCS will levy the financial services industry for any shortfall in recoveries of the £1.4 billion, for which the FSCS is liable. Recoveries on the £0.8 billion payment for deposit balances above £50,000 will be determined by the returns from the Landsbanki administration. HM Treasury does not have the power to levy the financial services industry for any shortfall between what may be recovered from the Landsbanki administration and the £0.8 billion owed to HM Treasury. HM Treasury will be liable for any shortfall. The FSCS has a claim of approximately £4.5 billion in the Landsbanki estate. This includes Iceland's liability. Further information on the Landsbanki administration can be found via the following web link: http://www.lbi.is/.
Secondary information
- Type
- Written question
- Reference
- 13220; 732 c176-7WA
- Session
- 2010-12
- Related items
- Subjects
- Compensation Banks Fees and charges Financial institutions Insolvency Iceland Financial Services Compensation Scheme Landsbanki
- Link
- View this Written question on www.publications.parliament.uk
Librarians' tools
- Timestamp
- 2013-11-20 01:51:47 +0000
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