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Banking: Iceland

Volume 718: debated on Thursday 8 April 2010


Asked by

To ask Her Majesty's Government further to the Written Answer by Lord Myners on 22 February (WA 174–5), whether they will apply the common law powers permitted by the Ram doctrine to enable Treasury Ministers to repay those retail deposits in the Presbyterian Mutual Society not protected by the Financial Services Compensation Scheme; and what is the total amount paid under the Ram doctrine to United Kingdom depositors in Icelandic banks. [HL2426]

The ministerial working group continues to explore all options in pursuit of mitigating the effects of the collapse of the Presbyterian Mutual Society on its members. Details of the financial support provided to UK banks, including support for retail depositor compensation payouts in Icelandic banks, for the years 2007-08 and 2008-09, are set out in the Treasury's Resource Accounts for 2007-08 (HC 539) and 2008-09 (HC61 1) respectively. Total support to Icelandic banks at 31 March 2009 amounted, at latest estimates subsequently to be revised, to £8.1 billion.