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Iceland's ex-PM and bank chief blamed for financial meltdown

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Iceland's ex-PM and bank chief blamed for financial meltdown

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Iceland’s former prime minister and central bank chief plus five other ex-officials acted with “gross negligence” in failing to avert a banking collapse in 2008.

The Special Investigation Commission report laid the blame firmly at the door of former leader Geir Haarde and central bank head David Oddsson.

Pall Hreinsson commission chairman:

“The Icelandic parliament needs to start a review of many laws on the financial market. It also needs to set a new legal framework for the banking industry and give the regulatory body new powers.”

In late spring 2008, Iceland’s three main banks collapsed under the strain of debt built up during a decade of massive overseas expansion.

While other international banks hit the skids Iceland’s whole financial system broke down.
The country is now dependent on overseas aid led by the IMF.