"Why then, you might ask, are the UK authorities not investigating? The answer is that both the FSA and SFO have indeed examined the case – very closely, in fact – but, after a lot of hand-wringing, have ruled out a criminal prosecution. The reason given is that it would be costly and 'untriable' in front of a jury in a British court because of the complex financial instruments involved. The FSA, meanwhile, is limited by the fact that the multitrillion-pound market in CDS trades falls outside its power to prosecute for market abuse. So all UK criminal investigations into a suspected €500m scandal at the heart of the City, involving some of the most controversial financial instruments invented in recent years, have been ditched because the British framework for dealing with financial fraud cannot cope."
The Observer i en ledare om den isländska utredningen av Kaupþings handel med kreditswappar.