UK Court Rules Kaupthing Asset Seizure as Legal Skip to content

UK Court Rules Kaupthing Asset Seizure as Legal

By Iceland Review

Britain’s High Court ruled yesterday that the UK Treasury had operated within the frame of law as it used emergency powers to seize the UK assets of Icelandic bank Kaupthing last fall and transfer the bank’s online unit, Kaupthing Edge, to ING Direct.

The headquarters of Kaupthing in Reykjavík. Copyright: Icelandic Photo Agency.

“The Court considered contemporaneous documents as well as witness statements submitted by the UK Treasury and the Bank,” the resolution committee representing creditors of the collapsed Kaupthing said in a statement, according to reuters.com.

“The Court concluded that, although the contemporaneous documents provided only an incomplete statement of the UK Treasury’s reasoning process, it was satisfied that a proper process had been followed,” the statement continued.

The resolution committee of Kaupthing decided in January to sue British authorities with support from then Prime Minister of Iceland Geir H. Haarde. Some economists believe that the drastic measure of seizing Kaupthing’s UK assets led to the bank’s collapse.

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