Kaupthing British unit put in administration

REYKJAVIK/LONDON (Reuters) - The British Treasury said on Wednesday that a Kaupthing division in Britain had been put into administration.

The Treasury said action had been taken to protect the retail depositors in Kaupthing Singer & Friedlander, a UK-based banking subsidiary of Kaupthing Bank.

It said the Financial Supervisory Authority in Britain had determined Kaupthing Singer & Friedlander was likely to be unable to continue to meet its obligations to depositors.

"The FSA concluded that KSF is in default for the purposes of the Financial Services Compensation Scheme."

The Treasury noted the unit's Kaupthing Edge deposit business had been transferred to ING Direct, a subsidiary of ING Group.

"The remainder of Kaupthing Singer & Friedlander business has been put into administration," it said.

The news confirmed reports in Iceland that British authorities had made the move.