Ordinary savers who had received a solemn assurance that deposits up to 100, 000 euros were safe are now being asked to take a haircut.

FORBES: The Botching of the Cyprus Bailout: Worse Than Lehman Brothers

REYKJAVIK, Iceland - Iceland's biggest bank received an emergency loan from Sweden on Wednesday, and Britain said it would guarantee deposits in an Icelandic bank's online unit as the financial crisis engulfing this tiny Nordic nation showed no sign of easing.

NPR: Iceland Shivers From Financial Crisis

Or to put it another way, the interest received on the mortgage book is dwarfed by all the other costs, including interest paid on deposits.

BBC: Have taxpayers got a decent deal on the Northern Rock sale?