It was the bank that liked to say yes to some of the UK's most colourful entrepreneurs. Kaupthing, the stricken Icelandic bank with a strong presence in the City, lent money to Gordon Ramsay, the Candy brothers, Karen Millen, Sir Tom Hunter and Robbie Tchenguiz.
It played a significant role in the debt-fuelled property boom in the UK.
Many of its high profile customers placed a tiny slab of their own money in their ventures. When valuations plummeted, that equity was rubbed out.
For Kaupthing, the situation was worse. They shouldered most of the risk. It is a situation that risks bankrupting a whole country.
Already it is clear that the collapse of Landsbanki, another Icelandic institution, could create massive problems for UK public authorities. Westminster Council has £17m deposited with two Icelandic banks – one of them is Landsbanki. Transport for London has £40m of cash with Icelandic banks. There are 20 local authorities around the country in a similar position.
So far, the Treasury, which is suing Iceland over its failure to guarantee UK savers' deposits, has shown no inclination to come to the aid of councils . If it does not, key public services will be at risk.
Iceland's travails could blow a hole in the UK high street. Baugur, an Icelandic investment fund, owns or has stakes in a huge number of UK high street retailers. It is unclear what relation it has to stricken Icelandic bank institutions.
If it is funded by Icelandic banks, it may be forced to sell some of its assets at a disastrous moment.
Now Iceland is asking Russian for a multibillion dollar loan to save it from bankruptcy. Effectively it could be the first country to be sold and leased back to another sovereign state. A case of Vikings being pillaged.
