A year after the crash, reporter Eric Campbell investigates the tragi-comic saga that saw this nation of 310,000 try to become the new Wall Street. He uncovers not just over-confidence and incompetence but widespread corruption.
‘Some of the ministers from the government had very close ties with these banks and this was never really revealed properly. How is it possible that they allowed the Icelandic banking system to grow ten times the size of our GDP? I mean how is that possible unless you have somebody looking the other way in order to make money out of it? – INDEPENDENT MP BIRGITTA JONSDOTTIR
What’s more, it seems authorities in Britain were grossly negligent in allowing Iceland’s banks to suck in billions of dollars from investors in a promotion that also ensnared hundreds of Australian residents.
Tony Shearer, a prominent British financier, reveals how he tried to warn British authorities that an Icelandic bank trying to take over his merchant bank was funded by ‘funny money’.
‘I went to the regulator ,the financial services authority and told them that I thought there were reasons, very good reasons why they should not approve them as fit and proper people to own a UK bank and so did some of my colleagues as well. They approved it.’
Campbell’s investigation shows how officials across the Atlantic failed to heed warnings that could have stopped the financial collapse. And there are worrying signs that little has changed to prevent it happening again.
‘If we don’t make some quite serious structural changes and change the incentives that that produced this destructive behaviour, we are just setting the conditions for a repeat crisis.” – ROBERT WADE
From ABC in Australia. Watch the video here.
This is actually an entertaining take on the financial crisis. You are treated to a preview from Gunnar Sigurdsson’s documentary where Bjorgolfur Thor claims he has nothing to say to those who call him a criminal. Tony Shearer of Singer & Friedlander claim that he discovered that only 10% of Kaupthing’s profits were made from banking but was ignored by the authorities in the UK should be water on the mill of those who claim that Iceland should not bear an insurmountable burden of IceSave in comparison with the UK. Added with scenery, nightlife and protest footage, what you have is a show worth watching.
Funny how interested the Aussies are in the Icelandic crash compared to the US press which is much closer culturally, geographically, politically and economically. Maybe some nations actually don’t want to learn the lessons of the economic crash.
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Bromley86
2 years ago
> Tony Shearer of Singer & Friedlander claim that he discovered that only 10% of Kaupthing’s profits were made from banking but was ignored by the authorities in the UK should be water on the mill of those who claim that Iceland should not bear an insurmountable burden of IceSave in comparison with the UK.
Yep, the UK screwed up with KSF. That’s why they’ve had to foot the bill.
Landsbanki though is not KSF.
D_Boone
2 years ago
This is a good documentary that actually tries to investigate why the kreppa happened.
Regards Australia’s interest? Well UK, US and Ireland are up to their a***s in alligators from the consequences of the crash. They have enough problems at home to concentrate on without worrying about other countries. Australia and a few other english speaking countries have suffered much less to date and I guess they have the time and interest to see why they are not circling the plughole themselves.
Secondly their economies have similarities: running deficits, dependent on primary production exports, exports a significant fraction of GDP, large amount of overseas debt, significant exchange rate fluctuations….
Possible reasons they “escaped” the worst:
* banks were more traditional
* fewer derivatives
* these countries much more affected by the 1987-90 crash i.e. people had seen it all before about 20 years ago and enough remembered.
* a bit of luck (its good to be 7th in line when the gun has only six bullets).
* however, it was a “damn close run thing” and people are still worried.
Paul H
2 years ago
I watched it once on my own, then again with the missus.
I just grab any opportunity to see footage of Iceland.
And now I am constantly looking out for faces I may know.
Not something I can do with USA/UK (too populous).
It is a decent show.
We are hoping to attend The Great Fish Day in Dalvík someday.
Our Realtor gave us the heads up on that first.