The allegation includes the view that the Treasury acted outside its powers under the Banking (Special Provisions) Act 2008. This act had been put in force only a few months ago to enable the nationalisation of Northern Rock. Kaupthing also thinks, that the Treasury was unjustified in treatin it like the other icelandic Banks and that this may have caused or contributed to the collapse
As one of the first acts the deposits of some 160,000 UK clients had been transferred from Kaupthing to ING Direct Bank. The fact that only a few days later ING received a EUR 10bn capital injection from the Dutch state casts a particular light on this decision.