Tens of thousands of investors--individuals, municipalities, and charities--took advantage of the exceptionally high rates offered on Landbanki's IceSave savings accounts, only to discover that these accounts were not formally backed by any government. Landsbanki officials had inexplicably failed to register as a domestic bank in either country, and thus were not backed by government deposit insurance. When Landsbanki went into receivership on October 7th, British authorities invoked anti-terror legislation on October 8th to freeze Landsbanki's assets there.
... Ólafur Ragnar should sign the bill because it's the right thing to do, and because the consequences of rejection would be disastrous. ... [If the bill is not signed] the current government would almost certainly fall, and any chance at reasonable reform would die. The conservative Independence Party that ran Iceland until the collapse would retake power and restart the party. The businessmen whose reckless actions placed the county in danger would return with the illicit funds they've placed in off-shore accounts and buy Iceland's resources for a song.Most importantly, the new government would take whatever steps necessary to ensure that these culprits never see the inside of a jail cell. The investigation of the misdeeds that led to Iceland's collapse has proceeded very methodically, and the special prosecutor now appears on the cusp of indicting some of the Independence Party's biggest supporters. If the investigators are allowed to continue, we'll see whether the rumors of money laundering for the Russian mafia are true, whether vast amounts of money are indeed sitting in Tortola, whether bank employees exploited pension funds with same glee that Enron employees exhibited while ripping off California consumers, and whether our politicians and regulators were bribable. ... By signing it, Ólafur Ragnar would ensure that the new government would be able to finish what it has started--a thorough investigation into the events that led to our fall. Unless Eva Joly and Ólafur Þór Hauksson are permitted to complete their task, not only will the wrongdoers escape justice, but we will show them that there are no adverse consequences for their incompetence and malfeasance.
...
[If the bill is not signed] the current government would almost certainly fall, and any chance at reasonable reform would die. The conservative Independence Party that ran Iceland until the collapse would retake power and restart the party. The businessmen whose reckless actions placed the county in danger would return with the illicit funds they've placed in off-shore accounts and buy Iceland's resources for a song.
Most importantly, the new government would take whatever steps necessary to ensure that these culprits never see the inside of a jail cell. The investigation of the misdeeds that led to Iceland's collapse has proceeded very methodically, and the special prosecutor now appears on the cusp of indicting some of the Independence Party's biggest supporters. If the investigators are allowed to continue, we'll see whether the rumors of money laundering for the Russian mafia are true, whether vast amounts of money are indeed sitting in Tortola, whether bank employees exploited pension funds with same glee that Enron employees exhibited while ripping off California consumers, and whether our politicians and regulators were bribable.
By signing it, Ólafur Ragnar would ensure that the new government would be able to finish what it has started--a thorough investigation into the events that led to our fall. Unless Eva Joly and Ólafur Þór Hauksson are permitted to complete their task, not only will the wrongdoers escape justice, but we will show them that there are no adverse consequences for their incompetence and malfeasance.
Madoff confessed.
while we're still waiting for the first indictment of any of the bankers?
US arrested Madoff, and he was bound over to foreclose a Sam Insull pursuit around the world. Investors, politicians, and regulators embroiled by the Landsbanki ponzi have confessed nothing. Pardon me, I don't see justice forthcoming from papering over malfeasance by paying off all complainants --at what appears to be par value, no where else in the world guaranteed, not even in the Madoff case. Moreover, what is stopping the "new government" prosecution of Icelandic civil and criminal law in the matter? Surely there are no IMF hurdles preventing such "reform" of its capital market.
Leave it Huffpo to publish material bound to leave the reader wondering, So what? Diversity is the key to economic and political evolution.
Re: Odious debts have odious debtors: Didn't the Icelanders get themselves a new semi-commie government? They should be able to deal with guilty capitalist roaders. Peak oil is not an energy crisis. It is a liquid fuel crisis. by Starvid (arvid.hallen at gmail.com) on Thu Aug 20th, 2009 at 02:47:43 PM EST [ Parent ] The semi-commies, too, are in bed with (4.00 / 2) the banks, as I understand it. The Fates are kind. by Gaianne on Thu Aug 20th, 2009 at 07:40:50 PM EST [ Parent ]
Peak oil is not an energy crisis. It is a liquid fuel crisis. by Starvid (arvid.hallen at gmail.com) on Thu Aug 20th, 2009 at 02:47:43 PM EST [ Parent ]
The semi-commies, too, are in bed with (4.00 / 2) the banks, as I understand it.
The Fates are kind. by Gaianne on Thu Aug 20th, 2009 at 07:40:50 PM EST [ Parent ]
LOL. Buh bye, Iris. Diversity is the key to economic and political evolution.
I would expect the former leaders to plead that they were just doing as the Americans and British were doing, so why blame them. I would also expect that clarity could much more readily achieved as the result of a legal process than a political process. $5 billion is not a lot of money on the scale of large coprorations and mid-sized and larger nations, but it is a lot of money on the scale of anyone of whom I can conceive as being favorably disposed to seeing that financial miscreants are brought to justice. After all, providing profits to the few and dumping liabilities on the many seems to be the point of the current "Anglo" system of political-economy. As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."
