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Icelandic Banks 'broke The Rules' Before Uk Deposits

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http://www.telegraph.co.uk/finance/financetopics/financialcrisis/8196161/Icelandic-banks-broke-the-rules-before-UK-deposits.html

Glitnir and Landsbanki were breaching banking regulations by the time 64 British local authorities deposited most of their £800m into the Icelandic lenders, according to two secret reports on the collapse.

Documents commissioned by Iceland’s special prosecutor and seen by The Sunday Telegraph suggest Glitnir was operating below the legal limits of its capital adequacy ratios by the end of 2007. A second report for the prosecutor’s office claims Landsbanki also breached the conditions of its banking licence at the end of 2007.

At least 12 British councils deposited sums between £5m and £1m in Glitnir after this point and at least 52 British councils put their money in Landsbanki during 2008.

.....

Both reports are critical of Landsbanki’s and Glitnir’s auditors, the Icelandic branch of PricewaterhouseCoopers (PwC), arguing that it should have spotted mis-statements.

Excellent I assume that no UK agency which has oversight on the banks was meant to pick up on these problems then?

As long as the accounts kept getting signed off happy days?

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Not often I take off my hat to Brighton & Hove "City" Council but long before the Icelandics went brjóst upp the finance dept pulled all its (our) money out.

Makes you wonder about the other local authorities. What were they thinking? (Answer: nothing.)

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http://www.telegraph.co.uk/finance/financetopics/financialcrisis/8196161/Icelandic-banks-broke-the-rules-before-UK-deposits.html

Excellent I assume that no UK agency which has oversight on the banks was meant to pick up on these problems then?

As long as the accounts kept getting signed off happy days?

Problem is that the companies (banks, auditors and regulators) were in Iceland, Icelandic companies don't employ Untermensch, its the master race only who, aside being thick, can be bribed, persuaded to do what is good for the country first. What was good for Iceland was allow the Outvaders (contrast to invaders) to pillage from foreigners. The Viking Outvaders were always admired for getting treasure and slaves during their pillaging and the same admiration was applied to the modern Outvaders.

The country presented a common front to allow this pillaging, difficult, impossible to penetrate.

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It would be interesting to know, or where they haemorrhaging money so fast that money made no difference?

It was be stolen by the banks owners or given/lent to friends. In one instance 500million euro was sent to the Caymen Islands by the bank owner (money that was given by the Icelandic central bank to prevent a collapse).

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Auditing is BS, I've been an auditor before.

Simply the audit comes a distant second what the client asks for you give them no matter what.

I've audited some incredibly dodgy companies and would easily give them adverse audit opinions. However my bosses are looking at the fat £8000 in fees audits generate and therefore overides my decision and adjusts the audit to make it look all ok.

Such things have the ability to spectacularly blow up in their faces though. My old boss got dobbed in by N. He is currently over a barrel with HMRC. Either way he loses his career and ability to practice. I was incredibly tempted to go to the hearings and gloat.

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Auditing is BS, I've been an auditor before.

Simply the audit comes a distant second what the client asks for you give them no matter what.

I've audited some incredibly dodgy companies and would easily give them adverse audit opinions. However my bosses are looking at the fat £8000 in fees audits generate and therefore overides my decision and adjusts the audit to make it look all ok.

Such things have the ability to spectacularly blow up in their faces though. My old boss got dobbed in by N. He is currently over a barrel with HMRC. Either way he loses his career and ability to practice. I was incredibly tempted to go to the hearings and gloat.

PWC Iceland probably depended on half its income from one bank. If they had flagged the company it would have resulted in national bankruptcy, just as eventually happened. Destroying the entire town/country's economy was simply not an option.

Foreigners (Barclays for instance) were repeatedly warning about these banks; walking dead in 2006 apparently. Any criticism was was angrily rejected as jealously by foreigners.

Simply looking at the management, books and accounts of the banks and large Icelandic companies was sufficient to show they were empty shells.

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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