Saturday, January 7, 2012
Is Iceland being singled out?
Why is Iceland being asked to pay the UK and Holland back for their payments to individuals who invested in Icelandic banks that collapsed? It is my understanding that any investment vehicle allowed to operate in the UK is regulated by the FSA. If the Icelandic companies were allowed to operate in the UK and failed than the UK should take responsibility. I wonder why aren't there similar claims against other multinational financial firms from around the world that have gone bankrupt and lost money for customers located in countries other than the country of their origin? I'm not completely sure what I'm talking about, which is why I'm posting this as a question, but it seems that even Britain themselves have such examples such as RBS. But I'm sure that Lehman Brothers, from the US, lost a lot of money for a lot of people outside of the US, but I have not heard of any demands for compensation from the US government. I'm sure there are many more such examples but I only heard about demands for repayments from Iceland. What is the reason or this? is it simply because it is a small country, and in recent financial vulnerability, and thus easily pressured? Or is there something that I am missing? Thanks.
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