Iceland freeze not over

See - Thursday, March 27, 2008Iceland - funds freezing up.

The Iceland Government in Reykjavik has bought a 75% stake in the Glitnir bank for €600m (£478m) to prevent it from going bust."The government does not plan to hold its share in the bank for an extended period. The purpose of this action is to enhance stability within the financial system," it said in a statement.

Glitnir is the third largest bank in Iceland, behind Kaupthing and Landsbanki.

After the de-regulation of financial markets in 2003, Icelandic companies that previously had only meagre access to funds were able to expand rapidly.

They did...with some alarming conequences.

The banks have moved into foreign markets with their clients, investing alongside them and building investment bank capabilities.

Landsbanki bought stockbrokers Teather & Greenwood and Bridgewell in London .

Kaupthing bought Singer & Friedlander.

At the time of the post we note above the Daily Telegraph was telling us ..."As Iceland goes, so go the Baltics, the Balkans, Hungary, Turkey, and perhaps South Africa.

All are living far beyond their means, plugging the gaping holes in their accounts with fickle flows of foreign finance. All have let credit grow far above the safe "speed limit", some exceeding 50pc a year."

Icelandic Investment groups in the Uk to watch (very carefully) are

Baugur (investment company) - see Wednesday, April 05, 2006 Arctic warms ? Iceland market cools down ? Baugur CEO faces further charges - they own Mosaic Fashions, Coast, Karen Millen, Oasis, Odille, Principles, Shoe Studio Group, Warehouse, Whistles, Jane Norman, MK One, All Saints, House of Fraser, Booker, Iceland, Woodward Foodservice, Julian Graves and Whittard of Chelsea, Hamleys, Aurum, Goldsmiths, Mappin & Webb, Wyevale Garden Centres, Watches of Switzerland, Debenhams, Woolworths, French Connection, Moss Bros

Arev (investment company)Aspinal of London, Blooming Marvellous, Cruise, Duchamp, Hardy Amies, *** GHOST, Jones Bootmaker, Limeys, Linens 'n Things, Mountain Warehouse, Unisport

Hard Amies .... TODAY "The company recently requested further funding from major shareholder (49%) Arev Brands, which has provided significant financial support for the business. " Andrew Manders, the chairman, is also listed as a director of the privately owned Arev Brands

However, a statement from Hardy Amies this morning said that Arev informed the company late yesterday afternoon that it was unable to provide the required finance.

Directors are considering the options for the company which could involved putting the business into administration.