From the BBC:
"Customers of the Icesave internet bank have been warned they will probably have to claim compensation for money held in their savings accounts. The authorities in the UK are preparing for the bank's parent in Iceland, Landsbanki, to be declared insolvent.
The Icelandic government took control of the country's second biggest bank on Tuesday to keep it afloat. Claims from Icesave's UK customers will be handled by the Financial Services Compensation Scheme (FSCS).
Halldor J Kristjansson, the new manager of Landsbanki, said it had not helped that customers in Britain wanted to take out a large chunk of money after the news broke about the nationalisation of Glitnir, the third largest Icelandic bank last week."
So this is globalization; a failed Icelandic bank dumps its liabilities onto the UK taxpaper.