From The BBC:
Prime minister Geir Haarde on the Icesave crisis
Chancellor Alistair Darling has said he will ensure all UK savers with accounts in the closed Icelandic internet bank Icesave get all their money back.
He told the BBC he was doing this because the Icelandic authorities had reneged on their obligations to ensure compensation could be paid.
But the Prime Minister of Iceland said later that they were searching for a “mutually satisfactory” solution.
Customers of other Icelandic banks have also had their savings protected.
Iceland took control of Icesave’s parent bank, Landsbanki, on Tuesday.
The internet bank has about 300,000 customers in the UK and their accounts have been frozen.
“We guarantee that no depositor will lose any money as a result of the closure of Icesave,” said a Treasury spokesman.
Dutch bank ING Direct has agreed to take over the £2.5bn of deposits of 160,000 UK customers of Kaupthing Edge…