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March 07, 2010

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Noel, how is it that the Icelandic taxpayer is on the hook for the bank collapses? Did their version of the FDIC insure foreign-currency deposits in foreign currencies? Just saying, if it was the US that had the banking crisis, I don't think depositors would get repaid in euros, I think they would get repaid in dollars, at whatever value they had deflated to. Please shed more light on this for me.

Nationalist. :^)

Jonathan, I believe that's part of the problem. The overseas Icesave accounts were denominated in local currency and, I believe, the pertinent EEA directive specifies minimum deposit coverage in terms of 20K euros.

That's pretty much what I was trying to explain in the next post. Was I too clever by half in my phrasing?

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