Iceland: Prosecutor Issues Charges Over Collapse of 2 Banks in 2008


Published: March 22, 2013

A special prosecutor in Iceland issued indictments this week against the chief executives and 14 other employees of two banks whose spectacular collapse during the financial crisis of 2008 sent the Icelandic economy into a tailspin. In one of the world’s most ambitious prosecutions stemming from the crisis, the 16 people are being charged with manipulating the financial markets and with putting their institutions in jeopardy by flouting internal rules. Among other things, the indictment says they issued loans to friendly companies that in turn used the loans to buy shares in the banks, elevating their stock prices. The people charged could face up to six years in prison if convicted.



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