Theatre sets scene for Iceland’s bank crash / Icelandic leaders accused of ‘negligence’

Preview and reports of the release of a report into the causes of Iceland’s 2008 banking crisis by the Icelandic parliament on the 12 April 2010.

The report was the first comprehensive analysis of the causes of the collapse of the three banks in the midst of the global financial crisis of October 2008.

The report accused the Icelandic government and regulators of 'extreme negligence' in the run-up to the country’s 2008 banking crisis.

Iceland's Prime Minister Johanna Sigurdardottir said:
'Mistakes were certainly made. The private banks failed, the supervisory system failed, the politics failed, the administration failed, the media failed, and the ideology of an unregulated free market utterly failed. This has called for a fundamental review of many elements of our society. In that respect, democracy, the rule of law and close international cooperation have been and will continue to be our strongest weapons'.

The Icelandic government appointed a commission of independent experts to make further recommendations as to how the government and governmental institutions should respond to the report.

(A separate criminal investigation is under way into allegations of share-ramping, dubious lending practices and a range of other suspected malpractice).

Morgunbladid, 13.4.10: Reykjavik blamed for economic meltdown (via PressEurop) http://www.presseurop.eu/en/content/news-brief-cover/230181-reykjavik-blamed-economic-meltdown

ESO: Background information: Iceland bank sleuths tighten links http://www.europeansources.info/record/iceland-bank-sleuths-tighten-links/

Deutsche Welle, 12.4.10: Extreme negligence caused Iceland's economic collapse, report says http://www.dw-world.de/dw/article/0,,5461337,00.html

BBC News, 12.4.10: Icesave: Icelandic authorities accused of negligence http://news.bbc.co.uk/1/hi/business/8616113.stm

Iceland: Parliament [Althingi]: Report of the Special Investigation Commission (SIC) http://sic.althingi.is/

Iceland: Government Offices: Press Release, 12.4.10: Icelandic government welcomes investigative commission's report on collapse of Icelandic banks http://eng.forsaetisraduneyti.is/news-and-articles/nr/4218

---