British govt claws back £1.36bn from Iceland after Landsbanki bank collapse

The UK Treasury has recovered a further £1.36bn from Iceland after its Landsbanki bank collapsed at the height of the financial crisis, forcing a taxpayer bailout for 230,000 savers in the UK.

The British government through the Financial Services Compensation Scheme paid out £4.5bn after the collapse in October 2008 of Landsbanki , which operated high-interest internet accounts in Britain through the Icesave brand.