YES IT'S 77 PERCENT!
Holy Cow!
The iceman plummets!
Posted on the UK Guardian.
- Iceland's blue-chip stock exchange plummeted 76% when it resumed trading today.
Icelandic stockmarkets had been suspended since Thursday. The OMX 15 fell 76% to 716.27 points, while the all-share index dropped 66% to 953.14 points. Six financial stocks — Kaupthing, Landsbanki, Glitnir, Straumur-Burdaras, Reykjavik Savings Bank and Exista — remained suspended.
Last week Iceland took control of Kaupthing, Landsbanki and Glitnir, a move that brought much of the country's banking sector under state control.
Britain and Iceland are working together to help the creditors of failed Icelandic banks, which include many British savers, local authorities and charities.
British retail tycoon Sir Philip Green jetted to Iceland at the weekend to negotiate a deal with the troubled investment group Baugur to buy up to £1bn of its debts. A deal could give him huge influence over Baugur's retail investments, which include Oasis, Karen Millen, Debenhams and Moss Bros.
Toy shop Hamleys and department store House of Fraser, which are partially owned by Baugur, rushed out statements yesterday stressing their independence.
In a statement today, Baugur said that, despite media speculation, it had not appointed any advisers. "We continue to monitor the situation in Iceland, where possible maintain a dialogue with the banks and manage and plan our business accordingly," said chief executive Gunnar Sigurdsson. "We have no plans to place our UK business into administration."
Source: http://www.guardian.co.uk/business/2008/oct/14/iceland-marketturmoil
And Iceland problem is also a problem to Britian!!!!!!!!!
Take the following BBC report!
- The government has defended its investment advice to councils who deposited £858.3m in Icelandic banks which later failed.
Communities secretary Hazel Blears said the guidance had been "prudent and sensible" and that none of those affected would "struggle" to pay staff.
The Local Government Association has demanded an inquiry into the investments made by 116 councils.
Ministers have revealed universities also have £77m in Icelandic banks.
'Strong ratings'
LGA chairman Margaret Eaton said: "This isn't the time for a blame game. This is an unprecedented situation, the extent of which could not have been foreseen.
"However, at the appropriate moment, there needs to be a full and independent inquiry to find out just how these banks continued to get relatively strong credit ratings until a few days before they went under."
The government and the LGA have set up a joint "rapid response unit" to provide financial advice to councils affected by the banking crisis.
Ms Blears said: "The government's first priority has been to do everything we can to help local authorities, along with other creditors, get back the money which they had deposited in the banks."
But for the Conservatives, shadow communities secretary Eric Pickles said: "There is a difference between light touch regulation and neglect."
In a ministerial statement, the government revealed that 12 UK universities have total deposits worth £77m in failed Icelandic banks.
But the Department for Innovation, Universities and Skills said the figure should be viewed in the context of annual turnover of £18bn.
In a separate statement, Cabinet Office Minister Liam Byrne, said charities accounted for "an extremely small fraction" of the total of £56bn invested in Icelandic banks.
'Complacency'
Government ministers were warned about the possible collapse of Iceland's banks and the threat to depositors' cash in July, when credit rating agencies downgraded them.
Lib Dem Treasury spokesman Lord Oakeshott and Tory MP Michael Fallon, deputy chairman of the influential Commons Treasury committee, both raised the issue with ministers.
But they were told depositors would be protected by law.
Speaking to BBC News on Friday, Lord Oakeshott accused ministers of "complacency" for apparently ignoring warnings from the City.
"Alarm bells were ringing all over about the Icelandic banks and the Treasury must have been blind and deaf not to hear them," he said.
In a statement, the Treasury said it was not the government's role to advise savers and ministers had stressed Iceland had a legal obligation to pay compensation.
Source: http://news.bbc.co.uk/2/hi/uk_news/politics/7669918.stm
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