Icelandic bank to sue government over administration
Kaupthing lawyers to launch legal challenge against government's handling of the administration of bank's UK subisidiary.
Kaupthing is suing the government over its handling of the stricken Icelandic
bank’s UK subsidiary in a legal action bankrolled by the Icelandic government,
The Times reported.
Lawyers for Kaupthing, formerly Iceland’s largest bank, will file a lawsuit
at the High Court in London today attacking the way in which Britain forced
Kaupthing
Singer & Friedlander into administration on October 8 last year,
according to the newspaper.
The lawsuit, which has the ‘full support’ of the Icelandic authorities,
including financial backing, comes after weeks of threats from Reykjavik.
Iceland took control of Kaupthing on October 9, the day after Kaupthing
Singer & Friedlander was put into administration, and Reykjavik blames
Britain for the collapse of the group.
The action, prepared by Weil, Gotshal & Manges, an American law firm,
will take the form of a judicial review, which allows individuals or businesses
to challenge government decisions. Northern Rock shareholders are using the same
process to question the government over its nationalisation of the mortgage
lender.
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Kaupthing
Singer & Friedlander sues Britain over UK subsidiary