Doesn't the government of Iceland i.e. central bank, bear some responsibility especially since the banks were not too big to fail? Thye were the supervisor. In case of Iceland mom & pop British & Dutch depositors got screwed, we are not talking about shareholders or bond holders. Iceland only stopped negotiating after they were told that unless depositors were made whole it was no go. I agree with the notion that banks shouldn't be too big to fail but, you can't make some depositors whole ( Icelanders) and not others. If there is not enough to pay all, divide the money amongst all depositors.
Agreed but nevertheless at the begining of the Credit Crisis ( pre-2010) when US and Icelandic banks were in trouble and Europe by comparison seemed stable they did, try to get in EU but were blocked by UK & Netherlands. ps I agree with Iceland letting the banks go, my point is you can't make some depositors whole i.e. Icelanders and not others if, they did not have enough to pay all then they should have divided the amount amongst all depositors.
ISK lost 50% of its value, can't call that whole. Icelanders with deposits in the UK & NL branches lost, just like the natives. UK and NL citizens with deposits in Icelandic banks were treated just like Icelanders. Iceland can't print EUR or GBP.
"you can't" what kind of nonsensical remark is that. you protect your own first and screw everybody else if necessary. incredible that you repeated a prima face incorrect remark twice..
Did you think Brits & Dutch were going to have their accounts in Reykjavik? Truth is after they paid the Icelanders they ran out of money and said hell with the others. Iceland officials knew how much money they had and how many depositors there were.
This was a credit crisis not a political crisis, there was no reason to discriminate amongst the depositors, otherwise universal banking rules like Basel III can never be enforced.
Icelandic Gov did not pay anybody! They just said ISK deposits in Icelandic banks are safe. At the same time currency conversion restrictions were imposed. Go figure..
Interesting piece but even to outsiders some of it doesn't look very serious, below is a reply from icelandic journalists : http://grapevine.is/Features/ReadArticle/A-Deconstruction-of-Icelands-Ongoing-Revolution Anyone noticed Icelandic government is trying to ban internet porn after printed porn and titties bars have already been banned ? I wonder which of Sweden or Iceland will be the first country to deem all sexual contacts between men and women but cunni lingus shameful exploitation of women and illegal ?!? I worry more about Sweden though, where gender issues seem already out of control.
The populace of Iceland will select new representatives in parliament in a week's time. The MP in question may have destroyed his small, left-wing political party.