[IWE] iceland may go bankrupt

Tue, 07 Oct 2008 13:43:13 -0400

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ouch!

http://www.telegraph.co.uk/finance/financetopics/financialcrisis/3147866/Fin=
ancial-crisis-Icelands-dreams-go-up-in-smoke.html

Iceland had also presided over the fastest expansion of a banking system=20
  anywhere in the world. Little did anyone know that the expansion once so=20
  admired would go on to saddle the country with liabilities in excess of $1=
00=20
  billion =E2=80=93 liabilities that now dwarf its gross domestic product of=
 $14=20
  billion.=20

Iceland overreached itself in spectacular fashion, and the party is coming t=
o=20
  a messy end.=20

Yesterday, trading in the shares of six major financial institutions was=20
  suspended as the government sought to avert meltdown.

Sigurdur Einarsson, Chairman, Kaupthing Bank, warned against people being to=
o=20
  alarmist.=20

"Over the years we have built a strong and well-diversified bank. We have=20
  some of the strongest capital ratios in the European bank sector. We've go=
t=20
  good asset quality and a highly diversified loan portfolio.=20

Kaupthing has and continues to manage its business prudently and, with our=20
  strong fundamentals, we are naturally concerned when we hear malicious=20
  rumours and sensationalism about Kaupthing being reflected irresponsibly.=20=
We=20
  ask people to look at the facts, not rumour and inuendo."=20

Meanwhile, Icelandic interest rates have been catapulted to 15.5 per cent,=20
  peaks not seen in Britain since Black Wednesday, in an attempt to rein in=20
  inflation. The krona's fr
eefall on the international currency markets is=20
  surpassed only by the catastrophic failure of Zimbabwean currency.

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<font face=3D"Arial, Helvetica, sans-serif">ouch!<br>
<br>
</font>http://www.telegraph.co.uk/finance/financetopics/financialcrisis/3147=
866/Financial-crisis-Icelands-dreams-go-up-in-smoke.html<font face=3D"Arial,=
 Helvetica, sans-serif"><br>
<br>
</font>
<div>
Iceland had also presided over the fastest expansion of a banking system=20
  anywhere in the world. Little did anyone know that the expansion once so=20
  admired would go on to saddle the country with liabilities in excess of $1=
00=20
  billion =E2=80=93 liabilities that now dwarf its gross domestic product of=
 $14=20
  billion.=20
</div>

<div>
Iceland overreached itself in spectacular fashion, and the party is coming t=
o=20
  a messy end.=20
</div>

<div>
Yesterday, trading in the shares of six major financial institutions was=20
  suspended as the government sought to avert meltdown.
</div>

<div>
Sigurdur Einarsson, Chairman, Kaupthing Bank, warned against people being to=
o=20
  alarmist.=20
</div>

<div>
"Over the years we have built a strong and well-diversified bank. We have=20
  some of the strongest capital ratios in the European bank sector. We've go=
t=20
  good asset quality and a highly diversified loan portfolio.=20
</div>

<div>
Kaupthing has and continues to manage its business prudently and, with our=20
  strong fundamentals, we are naturally concerned when we hear malicious=20
  rumours and sensationalism about Kaupthing being reflected irresponsibly.=20=
We=20
  ask people to look at the facts, not rumour and inuendo."=20
</div>

<div>
Meanwhile, Icelandic interest rates hav
e been catapulted to 15.5 per cent,=20
  peaks not seen in Britain since Black Wednesday, in an attempt to rein in=20
  inflation. The krona's freefall on the international currency markets is=20
  surpassed only by the catastrophic failure of Zimbabwean currency.
</div>

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