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Banking: Iceland

House of Lords written question – answered on 20th July 2011.

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Photo of Lord Laird Lord Laird UUP

To ask Her Majesty's Government, further to the Written Answer by Lord Sassoon on 7 July (WA 90), whether they will ask the Financial Services Compensation Scheme (FSCS) to cease pressing those with unclaimed deposits from failed Icelandic banks to reclaim their money; how much in each of the failed banks has been deemed ineligible for compensation by the FSCS; and whether the Chancellor of the Exchequer has the power to withdraw the offer of repayment to those with deposits of over £50,000 that have not sought recompense.

Photo of Lord Sassoon Lord Sassoon The Commercial Secretary to the Treasury

Contacting potential claimants in a failed institution is a matter for the Financial Services Compensation Scheme (FSCS), which operates independently from Government.

The Government do not hold information on ineligible deposits, which is also a matter for the FSCS.

The previous Chancellor of the Exchequer announced that retail deposit holders in the failed Icelandic banks would be compensated in full. The Government intend to review this position once the banks' legal liability to customers ends.

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