Icesave: UK government vowed British depositors are safe

As British Savers of Icesave fear the loss of their savings Gordon Brown the British Prime Minister vowed to protect the British savers of troubled Icelandic banks by announcing that he would sue Reykjavik to recoup the money.

As Icesave on online arm of Landsbanki Iceland’s second biggest bank was frozen yesterday after the nationalization of Landsbanki leaving hundreds of thousands of British savers in a state of panic over the safety of their money, Gordon Brown repeated in a news conference that he will take action against Iceland for not honoring its obligations. Brown said “We are showing by our action that we stand by people who save”.

Iceland’s banking systems has been under tremendous strain the last few weeks, now the Icelandic government are frantically trying to keep its economy from collapsing by fixing the exchange rate of its tumbling currency, they have also asked for a 4 billion Euro loan from Russia.

Read the full article: Guardian