Scene set for court battle over deposits

Article reports that London and Reykjavik have appointed lawyers, October 2008, as the Nato allies threaten to sue each other over Iceland's banking collapse. In an angry speech to Iceland's parliament, Mr Haarde said the UK's decision to put Kaupthing's main UK division into administration and the use of antiterrorist laws to freeze Landsbanki assets, 'wreaked enormous damage'.

Iceland: Central Bank of Iceland: Press Release, 16.10.08: Payments to Icelandic banks http://www.sedlabanki.is/?PageID=287&NewsID=1918

Iceland: Central Bank of Iceland: Press Release, 16.10.08: Status of domestic and international payment intermediation http://www.sedlabanki.is/?PageID=287&NewsID=1920

Iceland: Prime Minister's Office: News and articles, 16.10.08: Address to the Althing on the economic situation in Iceland by His Excellency the Prime Minister, Mr. Geir H. Haarde http://eng.forsaetisraduneyti.is/news-and-articles/nr/3075

BBC News, 15.10.08: Iceland: Britain's unlikely new enemy http://news.bbc.co.uk/1/hi/magazine/7667920.stm

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