View Full Version : Icelandic banks and airlines.

10th Oct 2008, 11:25
I'm interested to know how the current Icelandic banking situation will affect our industry. With the XL collapse last month and the Icelandic financial/banking involvement in that company, the time has come for an urgent government investigation into the XL failure in particular.

Load Toad
10th Oct 2008, 11:39
To be quite honest I've gone past caring. Six years or so of talking heads telling us how clever they are and how clever we should be in levering our assets, investing P/E ratios and market sentiment and it turns out they were no more reliable than a spiv used car salesman. I no longer can be bothered what 'they' did.

Government investigation into big finance? There's a misnomer.

bar none
10th Oct 2008, 12:41
Did the Icelandics buy a big wodge of Easyjet shares not so long ago? Do they still have a large stake and if so, are there any consequences?

10th Oct 2008, 12:42
...and still these so called "analysts" who helped mark the markets upwards and thought these fancy finance deals were the future, keep talking carp and their words are taken seriously, especially by the media.

No more than a set of fairground crystal ball gazers, still on fancy salaries no doubt. :mad:

Time to bring back the stocks for these clowns and the people who employ them as well as the journalists who report their every word..

10th Oct 2008, 13:00
Birmingham Daily Post December 18 2007
A multi-million pound investment backed by the Birmingham office of Kaupthing Singer & Friedlander has given a major boost to regional airline Eastern Airways.

Times Online October 9 2008
Iceland seizes Kaupthing as meltdown continues
Crisis-hit Iceland has taken control of Kaupthing, its biggest bank, and suspended trading on its stock exchange for two days.
Yesterday, the British authorities seized control of Kaupthing Singer & Friedlander, the UK arm of Kaupthing, which employs almost 700 people in the City.

10th Oct 2008, 13:09
What about that relic Air Atlanta Icelandic? Any have any news on how they are weathering the storm. I do realise they are ACMI but that is no safe guard in this age. Well they are burning someone's fuel are they not?

10th Oct 2008, 13:18
@ Bar None. Yes the Icelanders did start to aquire a significant stake in EZY but bailed out having made a tidy profit.... mind you if they had held on for a few more months they would have made twice as much when the share price hit £7....... today £2.80ish :eek:

So, no major holding (if any) as far as I'm aware.


barry lloyd
10th Oct 2008, 13:19
Perhaps the real question is: Where did the Icelandic banks get their money from in the first place?
I mean it's not a country with natural assets, and there isn't much cod (or anything else) left in their waters. There's only 320,000 of them, so how did they manage to spawn so many banks?

10th Oct 2008, 13:21
Astraeus has Icelandic owners - which is a fact rather than knowing whether the holding company has any deposits in Icelandic Banks. In all honesty, the financial services industry is so international that it doesn't really matter where a company is from, it could still have detrimental implications.

After all, Local Councils and Charities have got themselves tied up in all of this and they certainly have no Icelandic owners :rolleyes:

10th Oct 2008, 13:39
Government investigation into big finance? There's a misnomer.

Yes agreed, but certainly should be looked at and investigated by the FSA.

10th Oct 2008, 13:46
This is really thread drift, but the Icelandic banks got their money from borrowing. What effectively appears to have happened is that Bank A was not prepared to lend to Borrower B because the covenant was not strong enough. However they were prepared to lend to Bank C. Bank C then lends to Borrower B. B defaults, and now C can't pay A. I think this is a simplistic approach as there were a lot more stages in the chain. but that appears to be what has effectively happened.

Someone somewhere though must be sitting on a lot of money, or alternatively the money never existed, which I suspect is the issue.

10th Oct 2008, 13:56
Even more thread drift...

The former name of Zimbabwe was Rhodesia...

The former name of Iceland was?


10th Oct 2008, 14:04
Belgium? Congo? Go on, tell us.

Oh I know, it was Atlantis!

10th Oct 2008, 14:05
Iceland (official English name), Republic of Iceland (official English description), Ísland (http://en.wikipedia.org/wiki/%C3%8Dsland) (official Icelandic name), Lýðveldið Ísland (official Icelandic description), Fold (poetic name), Thule (Latin name, also poetic), Frón, Ísafold (both poetic),"Izland" (Hungarian)


Load Toad
10th Oct 2008, 14:09

10th Oct 2008, 14:11
The former name of Iceland...

(Warned you it was thread drift!)



Runs for cover...

barry lloyd
10th Oct 2008, 14:14
Thanks Chris.

Hmm, I feel that it's part of the answer, but I reckon there's more to this than meets the eye. Why were the Russkies so keen to help bail them out?
Not much of a thread drift by the way. The title says Icelandic Banks and Airlines, and without one, there wouldn't be the other!

Matt 35 - I'm old enough to remember it was Bejam - got it in a pub quiz once!

10th Oct 2008, 14:16

""In 1989, Bejam was bought by its rival Iceland (http://en.wikipedia.org/wiki/Iceland_(supermarket)), despite still being a success and being three times bigger than Iceland."

Looks like history repeating itself...


PS - Another one for the pub quiz...What is DNA?
National Dyslexics Association

10th Oct 2008, 14:26
Matt 35, I have the idea that you're not taking this seriously!! :D

10th Oct 2008, 14:26
Matt 35, Maybe you'd be better off taking your useless information back to the pub where it belongs.

Thanks to you, this thread has degenerated into a farce.
Can I request that the mods delete these posts by matt 35 and reinstate this thread in the rumours and news forum where it belongs ? After all this is a news worthy topic at the moment !

10th Oct 2008, 15:05
Whilst the thread was and is important to those in the aviation industry, once the mods had moved it to JetBlast, then humour and banter were inevitable....

That's the way it goes.



10th Oct 2008, 22:32
"Why were the Russkies so keen to help bail them out?"

Ever heard of the concept "strategic position" ?

Rice, lawn chairs, electronics, Japanese cars and billions £ of other goods still arrive by ship. We've been there before. Twice to be precise. Some people remember that. Yes I am an alarmist.

11th Oct 2008, 20:48

Please excuse my attempts at humour on your post about Iceland and XL.

Having lost just under £1800 the day before my post, and a smaller sum on the day of my post, I was trying to grin and bear it, as a pensioner of limited means.

I did not intend to divert your question...Sorry.