Bondholders challenge councils and FSCS over Icelandic cash

Under current arrangements, bondholders, including hedge funds Arrowgrass, GLG and Varde, will get nothing and the UK public bodies will get almost all of their money back when Landsbanki's assets are fully liquidated. However, in a test case starting today in the Supreme Court of Iceland, bondholders are arguing everyone should get around a third of their money back, the Telegraph reports. The FSCS borrowed money from the Treasury to bail out 200,000 savers who had money in collapsed bank Icesave, owned by Landsbanki, and is owed £4.2bn. Meanwhile, local authorities lost around £1...