Loading...
See More

Iceland seeks charges over collapse

Sep 12 2010 11:37 Reuters

Related Articles

EU invites Iceland to membership talks

Iceland braces for Icesave vote

Iceland rejection 'not a shock'

Iceland under fire

Iceland govt resigns, IMF affirms deal

McDonald's bids Iceland farewell

 

Reykjavik - Iceland should bring negligence charges against former ministers over its banking collapse in 2008, a committee of the Althingi parliament said on Saturday, but was split on who should stand trial.

Five of the nine members of the committee want charges brought against former prime minister Geir Haarde, ex-foreign and finance ministers Ingibjorg Solrun Gisladottir and Arni Mathiesen, and former business minister Bjorgvin Sigurdsson.

Two members did not want charges brought against Sigurdsson and two members did not make any recommendation.

Iceland's parliament will now decide whether to bring charges. If it decides to go ahead, it would be the first time the Landsdomur - a special court set up in 1905 to try government ministers accused of crimes - has sat.

"I cannot comment on the probability of the ministers being put in front of the Landsdomur. I need time to read this report," Prime Minister Johanna Sigurdardottir told reporters.

In late 2008, Iceland's three main banks collapsed under a mountain of debt built up during a decade of overseas expansion, sending the economy into a tailspin.

In April this year, an official investigation into the banking collapse accused Haarde, central bank head David Oddsson and a number of other former officials of gross negligence.

In their report, the investigators said that as a result of rapid overseas expansion, Iceland's main banks - Kaupthing, Glitnir and Landsbanki - became too big for the island's economy and the authorities should have reacted.

The report also pointed to close ties between the banks and their main owners, which gave these people - Iceland's business elite - easy access to cash.

The parliamentary panel has since been mulling whether to recommend legal action.

The crash left Iceland dependent on overseas aid, led by the International Monetary Fund. It is also saddled with more than $5bn in debt to Britain and the Netherlands that has complicated its economic recovery plans and could hold up its negotiations to join the European Union.

iceland
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

New forms of digital technology are changing the very ways in which entrepreneurs run their businesses.
 
 

This is why you should install iOS 8

Check out this video to see what iOS 8 has in store for you!

 
 

For chic geeks...

It’s THIS easy for someone to steal your ATM pin!
17 photo illusions that look so real
Check out the speed of this robo-cheetah!
New GIF keyboard on iOS for added fun!

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...