To get Icelandic assets, after the banking collapse, the UK gov't used special anti-terrorist laws. This is pretty bloody outrageous - special laws are passed to deal with the terrorist threat, and they end up being used to deal with a banking failure?!?
Well, I gather it includes a lot of provisions about criminal assets. DH is thoroughly that it was misused this way, but I'm used to the RICO thing back home, that gets used however the gov't feels it can ...
The prime minister inferred that they wouldn't; that they would of course attempt to secure the money of Icelandic investors, but that they would not be able to honour the guarantee for UK investors (which would have been the first £16k of any deposit per person).
Is all a bit blurry in my mind (because was a bit fraught at the time) but that was the gist of it.
Irishird right about the wide coverage of the act - not just anti-terrorism.
Icleandic banks are not considered to be terrorists. The Govt have invoked powers granted under a bill which includes the words terrorism. However, one could argue that the Icelandic authorities ARE financial terrorists having just thrown 2 fingers at their equivalent of the FSCC and said "tough, we're keeping your millions of pounds" to all the investors who trusted the Icelandic authorities to keep their legally obligated promise.