UK savers hit as Iceland nationalises Landsbanki

Earlier today, the Icelandic Financial Supervisory Authority (IFSA) took over the bank, having previously taken control of Glitnir last week. Landsbanki owns the Icesave internet bank, which provides savings accounts and ISAs to UK consumers, and customers are unable to use their accounts at present. Iceland’s government has given savers a 100% savings guarantee, but says £4.5bn worth of investments in 300,000 UK accounts will not be covered by the scheme. Icesave customers are covered by the FSA’s new compensation limit of £50,000, but would need to claim the first £16,000 from the Icel...