Former Iceland prime minister, Geir Haarde has been cleared of three major charges of negligence related to the country’s 2008 economic collapse.
The special court found him guilty of a lesser charge that carried no prison sentence; failing to hold special cabinet meetings ahead of the crisis.
The verdict was all about appeasing public opinion, he said:
“This is obviously a purely formalistic charge, it has nothing to do with the banking crisis as such. I can tell you that I have always found this charge to be even more ridiculous than the others,” said Haarde.
All of Iceland’s top banks collapsed days after Lehman Brothers went belly up in New York. It sparked the freeze on global interbank lending, and four years on although Iceland is recovering, the financial sector is gutted and capital controls remain in place.