Iceland Sends a Banker To Jail for 2008 Crash!

Iceland Sends Banker to Jail

Wall Street bankers are staring agog at headlines coming from Europe where, in Iceland, the former chief executive of one of the largest banks in the country which was involved in crashing the economy in 2008 has been sentenced to jail time. As Valuewalk reports, in receiving a one year prison sentence, Sigurjon Arnason officially became the first bank executive to be convicted of manipulating the bank’s stock price and deceiving investors, creditors and the authorities between Sept. 29 and Oct. 3, 2008, as the bank’s fortunes unwound, crashing the economy with it. It appears he was as shocked by the verdict as Wall Street-ers are, "this sentence is a big surprise to me as I did nothing wrong."

Now, if only the U.S. and European nations would follow suit, maybe we can keep this from happening again for at least a while... PS: don't miss the comment section, they're hilarious and I can't repeat any of them here...

Iceland!

Wow Iceland has really become the frontlines in the fight against the banker domination. Didn't they also try and get some of the more powerful banks out of the country oh yeah and there refusal to take banker inspired loan.

I love Iceland. If I had valuable skills, I'd move there in a heartbeat.

Looking at all the ongoing scandals and investigations you'd hope there would be more of this going on.

Spurred on by the latest FOREX rigging case, I emailed my local MP this week asking him about the banker crimes and what prosecutions we can expect.

Here's the email I sent:

Hello Mike

I am writing to you to ask if you are aware of any plans within the government, to begin prosecutions against those responsible for the LIBOR and FOREX scandals (and any subsequent financial rigging scandals)?

The reason I ask, as I have heard so many people ask and wonder about in recent times, is that we are talking about fraud on a massive scale. A conman conning a little old lady out of a few hundred pounds will be plastered across the press as evil incarnate, yet it always seems that those conning entire countries out of money are given a government approved “get out of jail free card”. Despite all the wrongdoing and, lets be quite honest here, criminal behaviour, not one bank executive has seen the inside of a police car, let alone a jail cell.
Surely we are talking about organised crime here, on a huge scale, yet the punishment meted out is a fine (some or part tax deductible?) which is recouped soon enough anyway and the costs passed on to the customers. I see too that as punishment, the “regulators” as talking about the banker’s bonuses being capped at 200% of salary. Well now, that’ll sure teach them the error of their ways and ensure they won’t be naughty again!

I thought the proceeds of organised crime were to be seized – houses, flash cars, cash etc. So far, all we have seen is those guilty of this massive fraud being perpetrated upon the people of the world, not just the UK, being rewarded for their crimes and let off with a stern word or two. Isn’t it about time that all those committing the crimes, and those at the top of the ladder, the executives, whose salaries and bonuses are also tied to the institution’s performance, are placed in jail and have all they own seized as the profits of organised crime? After all, the executives are guilty too of profiting. They know where the money is being made and turn a blind eye, but profit from it personally.

Time to take the gloves off and start issuing harsh sentences and asset seizures I think, and many would agree. The excuse that is always trotted out, that we can’t be too harsh as all the top bankers would leave the city of London, is laughable. I mean, seriously, they have not exactly done a stellar job in the past and have shown their greed and utter contempt for the country and the people within it. Another bailout for the boys and it’s off to the club for a large one!

A crime is a crime, no matter who the perpetrator is or their perceived importance. We either uphold the letter of the law, in all cases, and have justice meted out equally across the board, or none at all.

I’d be interested to hear your views on the punishments for high financial crimes, and the government’s justification for the apparent non-prosecutorial approach.

I'll wait and see what answer I get.

a reply to: signalfire

Yes, do like the Nazis ... blame it on the Jews (bankers).

What about that big guy, called King David, who went on stage and hailed the Vikings for doing the countries work.

a reply to: Mr Headshot

Pshhhh valuable skills... I'm bout to cling onto a raft Elian Gonzales style... Maybe some nice Vikings will take me in and let me be there house keeper!

In all seriousness good fricken job Iceland. I've been waiting 5 years atleast for this to happen.

Excuse me while I go celebrate

Well they say they are too big to fail but now they are not too big to jail ...love it :>)

a reply to: signalfire

HAHA he actually believes he did nothing wrong! Yeah you out of touch piece of shhh, you deserve life in jail.

originally posted by: bjarneorn
a reply to: signalfire

Yes, do like the Nazis ... blame it on the Jews (bankers).

What about that big guy, called King David, who went on stage and hailed the Vikings for doing the countries work.

What are you babbling about? Maybe it sneaked past you, but the banker involved would appear to be Icelandic.

"Sigurjon Arnason" Probably not Jewish, as if it mattered. It's the BANKERS that are the problem, and it's international in scope, and probably doesn't have a lot to do with how people spend their Friday nights.

Legally, a CEO is duty-bound to maximize the value of all assets in order to maximize the stock price of the corporation. So he was doing what the system expected him to do. It's this "duty-to-the-shareholders" that is the problem.

Iceland has been doing extremely well on many fronts, including taking major steps in creating a better democracy. I see them as an example for the rest of Europe; not just for what they do (which is great to begin with) but also how quick they learn and adapt. After the IceSave debacle things changed for the better rapidly whereas in the rest of Europe it was all, even obvious at that time, empty rhetorics. And yes, the rest of Europe showed its inadequacy of dealing with bankers, banks, corruption in government etc really well, their lack of capability and assertiveness really shone. :inky:

And here we are, the same corrupt elite faces no personal penalty, no big changes have been made and as this whole thing is ''boring'', nobody discusses it. No political parties do, no politicians. Because meh, difficult, and meh, money's nice, right? (when you get it, not when it's taken from the people. So basically they steal even more than they tell! ) So now problems fester as much as before while these 'boring' things impact us all immensely. But it's too abstract and complex to even think about it....

I mustn't think about it too much. It feels frustrating.

a reply to: Pitou

Agreed, Pitou. I can only surmise that Iceland was one of the few places that the bankers didn't also run the government, so real change was possible. Everywhere else, "CYA" was a done deal and burnt into the system.

Reading about the runup to the crash where Iceland's banks took on enormous risk and then tried to get the relatively small populace to pay the price, and the response of the people to that realization, is a fascinating education in HOW to deal with criminals at the top. Their rational response was edifying and needs to be repeated globally.

The bankers are truly lucky that the people of Iceland restrained themselves from violent behavior; executions could easily have been demanded rather than almost suspended sentences...

a reply to: signalfire

Well Done Iceland.

He helps crash an entire country's economy and he gets one year in jail? Can't say I'm impressed. He should be in there for life, IMO.