During the last years none of those who had caused severe economic crises or the collapse of banking groups has never even been tried. Sometime, as it happened to Deutsche Bank, they had to pay financial penalties. And nothing else.

There is country that decided to make differently. In Iceland, the parliament decided to treat banks as normal enterprises and created an office for the financial control and monitoring.
Recently, five bankers working for two of the largest banks of Iceland, Landsbankinn and Kaupþing, were sentenced to prison because they contributed directly to the collapse of economy in 2008. The executives, according to Iceland magazine, were sentenced to two to five years (the maximum sentence for financial crimes is six years, but the Supreme Court is considering raising this limit) for market manipulation, embezzlement and infringement of fiduciary duty. The decision to proceed against directors and managers of banks was taken after the Icelandic parliament has recognized the relationship of cause and effect between the way they managed the financial markets and local economy. Up to now, Iceland had to pay to the IMF 332 million dollars, as consequence of the financial crisis that began in 2008 and collapsing of the financial system.

With the last five raises up to 26 the bankers (executives of major financial firms), sentenced to prison terms: they were issued convictions for a total of 74 years in prison, as reported by Jay Syrmmopoulos on activistpost.com.
Olafur Ragnar Grimsson, president of Iceland said : “Why banks should be considered the Holy Church of the modern economy? Why private banks cannot be like the airlines or telecommunications firms that may go bankrupt if handled irresponsibly? The theory of the need to bail out the banks is a theory written by bankers. Citizens of liberal democracies will not accept this in the long term.”

C.Alessandro Mauceri

 

 

 


1 COMMENT

  1. In effect, banks are Public Limited Companies, and as such they can bankrupt.
    If a bank bankrupts, its investors (shareholders and creditors) have the right to be payed back by getting shares of the bank itself, becoming the new owners. Any different action is against law.

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