The judgment obliterates any hopes the UK government had of pursuing Reykjavik for interest on the £2.35bn bail-out. It also raises grave questions about Europe’s cross-border banking arrangements, which allow overseas lenders to “passport” into a country without being subjected to local financial regulation.
In a key ruling that will set a precedent for future cross-border depositor guarantees, the EFTA court dismissed all three claims brought against Iceland and said the compensation rules did not mean the government had to fund the scheme.
Oops! Sounds like that scam didn't work out for them. That's a shame. Of course, the scammers who ripped us off got paid in full. With taxpayer cash. Our Congress made sure of it.