Kaupthing Bank can apply for a judicial review of the UK government’s decision to transfer Kaupthing Edge’s UK deposit accounts to a third party, the High Court ruled today.
The Icelandic Bank believes that the actions of the UK government when it intervened in its UK subsidiary Kaupthing Singer & Friedlander in October last year were illegal and unjust.
UK deposit accounts from Kaupthing Edge, held by Kaupthing Singer & Friedlander, were transferred to Dutch ING Direct in order to protect UK savers.
At the time the Financial Services Authority said it was entitled to transfer the funds because Kaupthing Edge was in default.
In a statement today Kaupthing Bank said it welcomed the decision and hopes that ‘promised financial support will be forthcoming from the Icelandic government to ensure that legal proceedings can be continued.’
The High Court will now set a date for a hearing at which evidence and arguments from both sides will be considered.