Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Report on Icelandic crisis - authorities negligent

On the BBC the first news of the investigation have been translated into English.
We should be so lucky in the UK and US to see those responsible held to account:

Leading Icelandic figures, including ex-Prime Minister Geir Haarde, are guilty of "negligence", a report into the Icelandic banking crisis has said.

More should have been done to limit the damage to Iceland of the collapse of its biggest banks in 2008, it said.

Authorities should also have made sure UK Icesave depositors were insured by the UK, saving Iceland nearly £5bn.

The scathing 2000-page report also cited evidence of possible insider trading by key Icelandic investors. .....

If the Icelandic authorities had intervened in the summer of 2008 to ensure that Icesave was turned into a subsidiary, it would have meant that Iceland was no longer liable for its nearly £5 billion in deposits, the report said. ......
 

"It seems like the authorities sat back [during the summer of 2008] while Landsbanki and the FSA went back and forth and back and forth, without anything coming from it."

Negligence

The report goes onto accuse leading Icelandic figures of negligence in failing to appreciate the systemic risk posed by Icesave to the Icelandic banking system.

Among those specifically criticised are the former Prime Minister Geir Haarde, the former finance and business ministers, as well as the head of the Icelandic central bank and the head of the financial services regulator.

The commission chair, Pall Hreinsson, said that a parliamentary committee would now decide whether legal action ought to be brought against those named in the report.



 



 

 










 



Disclosure: No positions

Disclosure: No position