Oct. 10, 2008 (LPAC)-- It was revealed in all the British press that British Prime Minister Gordon Brown used anti-terror laws to authorize his seizure of the British subsidiaries of the Icelandic bank. This demonstrates that it was in fact an illegal move by the British government to seize the banks assets without due process. It was this move which forced Iceland to put Kaupthing bank into receivership.

Iceland's Prime Minister Geir Haarde blamed Britain saying,"Action taken against Kaupthing Bank by the British government, was to blame." He also denounced the use of terror laws, saying, "Not many governments would have taken that very kindly."

Sigurder Einarson, former Kaupthing Bank Charmian said, "Our belief is that really high up in the UK hierarchy there was the decision to close down everything Icelandic," he told the Financial Times. He also said that the British refused to allow Kaupthing to have access to Brown's bailout package even though it was the twelfth largest bank in the UK. According to The Daily Telegraph, "We are not Barclays, HBOS or Lloyds, but I believe we are the twelfth largest bank in the UK and we were not allowed to participate in the rescue plan. We asked, and the answer was a firm no."

Meanwhile 127 British public institutions had over one billion pounds deposited in Icelandic banks. This included the Metropolitan Police Authority which had 30 million in deposits. While much blame is being leveled at the institutions for placing money into Icelandic banks, Eric Pickles, the Conservative parties' shadow Communities Secretary said the councils were operating on guidance issued by former deputy prime minister and Tony Blair lackey John Prescott back in 2004.