First They Jailed the Bankers, Now Every Icelander to Get Paid in Bank Sale

mercurial

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First They Jailed the Bankers, Now Every Icelander to Get Paid in Bank Sale

October 29, 2015

(ANTIMEDIA) Iceland — First, Iceland jailed its crooked bankers for their direct involvement in the financial crisis of 2008. Now, every Icelander will receive a payout for the sale of one of its three largest banks, Íslandsbanki.

If Finance Minister Bjarni Benediktsson has his way — and he likely will — Icelanders will be paid kr 30,000 after the government takes over ownership of the bank. Íslandsbanki would be second of the three largest banks under State proprietorship.

“I am saying that the government take [sic] some decided portion, 5%, and simply hand it over to the people of this country,” he stated.

Because Icelanders took control of their government, they effectively own the banks. Benediktsson believes this will bring foreign capital into the country and ultimately fuel the economy — which, incidentally, remains the only European nation to recover fully from the 2008 crisis. Iceland even managed to pay its outstanding debt to the IMF in full — in advance of the due date.

Guðlaugur Þór Þórðarson, Budget Committee vice chairperson, explained the move would facilitate the lifting of capital controls, though he wasn’t convinced State ownership would be the ideal solution. Former Finance Minister Steingrímur J. Sigfússon sided with Þórðarson, telling a radio show, “we shouldn’t lose the banks to the hands of fools” and that Iceland would benefit from a shift in focus to separate “commercial banking from investment banking.”

Plans haven’t yet been firmly set for when the takeover and subsequent payments to every person in the country will occur, but Iceland’s revolutionary approach to dealing with the international financial meltdown of 2008 certainly deserves every bit of the attention it’s garnered.

Iceland recently jailed its 26th banker — with 74 years of prison time amongst them — for causing the financial chaos. Meanwhile, U.S. banking criminals were rewarded for their fraud and market manipulation with an enormous bailout at the taxpayer’s expense.
 

Toby

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First They Jailed the Bankers, Now Every Icelander to Get Paid in Bank Sale

http://theantimedia.org/first-they-jailed-the-bankers-now-every-icelander-to-get-paid-in-bank-sale/

Although I do not have an issue with the approach and I think it is laudable, it will be interesting to see which new bank will have the gumption to setup shop in a Country that is the exception with how it treats bankers who have broken the law.

I can see every major world bank crossing Iceland off their expansion Plans.
 

eg2505

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so lucky, I suppose it comes with the fact that the country is so small, the presidents phone number appears in the phone-book,

maybe its also got to do with the fact the sun never sets in summer there,
 

Alan

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and in the US there was no accountability....

WASHINGTON – While it may continue to baffle us how no bankers went to jail in the wake of the financial crisis even as banks paid tens of billions of dollars in fines for wrongdoing, there is very little mystery to it.

The three government officials most responsible for the failure to bring any top banker to trial for widespread fraud – former Treasury Secretary Timothy Geithner, former Attorney General Eric Holder, and former DOJ official Lanny Breuer – are all now making millions of dollars a year in Wall Street-related jobs.
Cohan traces this lack of action back to a memo written by Holder in 1999, when he was deputy attorney general in the Clinton administration.

The memo, which set out what came to be known as the Holder Doctrine, warned of the danger of prosecuting big banks because of possible "collateral consequences." (Holder went on to work for the corporate law firm of Covington & Burling in 2001 and now has returned there.)

In 2012, Lanny Breuer, then head of the DOJ's criminal division, echoed this doctrine when he said he felt obliged to consider the health of the company and the financial markets overall in deciding whether to pursue criminal indictments. (Breuer worked at Covington & Burling prior to his stint in public service and now has returned to the firm as vice chairman.)

http://www.usatoday.com/story/money/columnist/2015/08/18/delamaide-obama-banks/31939695/
 

Ockie

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Although I do not have an issue with the approach and I think it is laudable, it will be interesting to see which new bank will have the gumption to setup shop in a Country that is the exception with how it treats bankers who have broken the law.

I can see every major world bank crossing Iceland off their expansion Plans.

Why would they want to set up shop though? Iceland has got what? 300 000 people? I am surprised they have as many as 3 banks. Unless some of these banks wants to make Iceland the new Switzerland.
 

falcon786

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Good I wish the rest of the world could deal with corrupt bankers in the same way... They ruin economies and people's lives.
 

Wasabee!

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Six years after the total collapse.

Yes and look at our Seriti commission (inquiry started 2011 for 1999 Arms deal)? Nothing will ever happen, so at least getting a verdict 6 years later is better than starting 12 years later...
 
F

Fudzy

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Six years is quite generous given the number of lawyers the finance houses probably threw at this.
 
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