How did the banks of a country the size of a single London suburb manage to burn through so many billions? And what is being done to recover assets for the creditors of the banks?
Only a few months ago many believed that Iceland was just another victim of the global financial crisis. In the good times the country had benefited from the so-called carry trade, which saw financiers borrow in low interest countries such as Japan and lend in high interest countries like Iceland. But the credit crisis put an end to that. The hot money took flight.
But many in Iceland no longer believe that the country is not just a victim of the credit crisis and international flight of capital. Questions are being asked about the country’s banking system that is known for its secrecy, cross-ownership and complexity.
From the Telegraph
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Roy
2 years ago
Isn´t it interesting that the cross ownership BS was known by all Icelanders many moons ago but no one got up in arms because the economy was flying high and people were just to busy buying the Land Cruisers and Range Rovers to let a little thing like cross ownership get in the way of their lifestyle.