by Oui
Mon Apr 12th, 2010 at 09:17:05 AM EST
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Remember all the blame going around? Revolting Iceland
Crisis Report: Icelandic Ministers Were Negligent
(Iceland Review) - The long-awaited report on the banking collapse was presented by the Althingi Special Investigation Commission (SIC) today at 10:30 am.
The SIC concluded that former Prime Minister Geir H. Haarde, Finance Minister Árni M. Mathiesen and Minister of Business Affairs Björgvin G. Sigurdsson were negligent.
Accused of lying to the Dutch National Bank
The authors of the report argued that the Icelandic government had ignored warning signals and not taken the actions necessary to fight the upcoming economic disaster, ruv.is reports.
"Based on incidents and viewpoints which are explained in further detail in the relevant chapters of the report, the SIC believes [the aforementioned ministers] demonstrated negligence in the understanding of the 1. paragraph of the 1. article in the legislation no. 142/2008 in the events leading up to the collapse of the Icelandic banks by not reacting properly to the imminent danger to the Icelandic economy caused by the worsening situation of the banks," the report's conclusion reads.
The SIC also concluded that the government's actions in banking affairs at the beginning of 2008 were "unsystematic" and that ministers had focused too intently on the image problems of financial companies instead of the obvious problem that the Icelandic banking system was far too large in comparison to the economy as a whole.
The SIC presents its findings .. (Photo by Geir Ólafsson)
When ministers attempted to improve the image of the Icelandic banking system with participation in public discussions, especially abroad, they did so without estimating the financial strength of the Icelandic state and its capability to assist the banks and without having information on the cost of a potential economic collapse.
The report says actions should have been taken much sooner. "When the banking system had become too large compared to the size of the Icelandic economy, the government should have reacted. Actions should have been taken no later than 2006 for there to have been a possibility of preventing the collapse of the banks without compromising the value of their assets."
Former Iceland minister rejects Dutch Icesave criticism
(IceNews) - Bjorgvin G. Sigurdsson felt compelled to comment openly against Nout Wellink's recent remarks that Iceland lied to him over Icesave.
Iceland's former Minister of Trade, Bjorgvin G. Sigurdsson wrote an open letter which was published in the Dutch De Volkskrant newspaper. He told mbl.is that he saw his action as urgently necessary in the face of very serious allegations made against the former Icelandic government, and indirectly at him personally.
Dutch National Bank head Nout Wellink recently told his country's parliamentary investigation into the Icesave collapse that the Icelanders had lied to him over the state of Landsbanki and the stability of Icesave. He also shunned any personal responsibility for the collapse, saying that European rules prevented him from doing anything to stop Icesave's rapid expansion.
Sigurdsson disputed both points, saying that the Icelandic government never lied to Dutch authorities - and least of all his Ministry of Trade, which is in control of the FME national financial regulator.
Fraudulant Act
● Michael Collins: First Iceland, Then The World
"But I will not let myself be reduced to silence."
