How will of British terrorist law effect on banks?

Iceland said it was considering asking the European Court of Human Rights to investigate the British government's use of anti-terrorist legislation to freeze the assets of Icelandic bank last autumn. Britain has defined its actions as an effort to protect British bank deposits as the Icelandic banks faced collapse. However, Iceland argues this only made the situation worse for the North Atlantic nation's banks. 

Icelanders had even set up a web site to protest the British government's actions. The web site contained photos with texts stating they were not terrorists. 

The committee running Kaupthing bank decided to sue the British government over the decision to force Kaupthing's British subsidiary Kaupthing Singer & Friedlander into administration. 

However, the government decided not to sue the British government in a British court, as it had had been identified that it had very little chances of winning. 

On the other hand the government of Prime Minister Geir Haarde said it was going to support the Icelandic banking groups in actions against the British government. 

Iceland had agreed with Britain and the Netherlands to compensate British and Dutch who had deposits in Icelandic banks.