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By G. Johnsen

The mixed cave in of Iceland's 3 greatest banks in 2008 is the 3rd biggest financial disaster in heritage and the biggest banking procedure cave in suffered through any nation in glossy monetary heritage, relative to GDP. How may well tiny Iceland construct a banking procedure in under a decade that proportionally surpassed Switzerland's? Why did the bankers choose to develop the procedure so quick? How did companies tunnel funds out of the banking process? And why did not anyone cease them? Bringing Down the Banking approach solutions those questions. Gudrun Johnsen, Senior Researcher with Iceland's distinctive research fee, tells the riveting tale of the increase and fall of the Icelandic banking procedure, describes the Commission's findings on the dangerous results of retaining corporation cross-ownership, and explains what we can research from it all.<

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The Central Bank’s Director of Financial Stability Tryggvi Palsson, who had been on a golfing trip in Spain the previous weekend and therefore not involved in the Glitnir decision, reports that contagion is beginning to spread and that the coming weekend will be crucial. ”68 30 BRINGING DOW N T HE BANK ING SYST EM Later that day, after Glitnir asks for written confirmation from the government that it is bound by the agreement, the government coordination group meets and discusses the upcoming Glitnir shareholder meeting.

The Government has announced that it will do everything in its power to strengthen the Icelandic banking system. To that end, several important achievements have been attained over the last few weeks and months. In the alarming situation now prevailing in global financial markets, extending a lifeline to the banks entails great risk for the entire Icelandic nation. This must be kept in mind when addressing foreign borrowing by the National Treasury, amounting to thousands of billions of Icelandic kronas, for defending the banks in the rough seas they now find themselves in.

The findings of the SIC investigation provide us an unprecedented view of the events occurring throughout the Icelandic credit boom–bust cycle. In fact, in my presentations at central banks and other financial institutions around the world, in front of some of the most experienced financial markets experts of our time, I am yet to find an audience that wasn’t surprised and even shocked by the details of the Icelandic story. I thank these audiences for encouraging me to write this book and for providing great feedback that helped guide the story.

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