Call for FSA report on Icelandic bank collapse

The former chief executive of Singer & Friedlander, the City investment bank bought by Kaupthing, has called for the FSA to publish a report into the Icelandic banks' collapse.

Tony Shearer, who was leading the 100-year-old Singer & Friedlander when it was acquired in 2005, said the UK government has "learnt none of the lessons" from the failure of Kaupthing and Landsbanki, reports the Telegraph.

His comments, made in a letter to The Daily Telegraph, come days after property tycoons Robert and Vincent Tchenguiz were arrested by the Serious Fraud Office as part of their investigations into the collapse of Kaupthing.

The SFO arrested nine men, including two in Iceland, in an operation that involved 135 police officers in London.

The downfall of Kaupthing cost the UK Treasury £2.5bn, after it bailed out 160,000 UK customers in its deposit arm Edge. Councils are thought to be still owed around £750m from the bank's demise.

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