ICELAND: ‘ Recovering Fastest in Europe After Jailing Bankers Instead of Bailing them Out’

arrest-bankers#AceNewsReport – ICELAND:June.18: After Iceland suffered a heavy hit in the 2008-2009 financial crisis, which famously resulted in convictions and jail terms for a number of top banking executives, the IMF now says the country has managed to achieve economic recovery—“without compromising its welfare model,” which includes universal healthcare and education. 

In fact, Iceland is on track to become the first European country that suffered in the financial meltdown to “surpass its pre-crisis peak of economic output”—essentially proving to the U.S. that bailing out “too big to fail” banks wasn’t the way to go.

Iceland is beautifully, yet unfortunately, unique in how it chose to handle the disaster. It simply let the banks fail, which resulted in defaults totaling $85 billion—lending ample justification for the prosecution and conviction of bank executives for various fraud-related charges. The decision seemed shocking at the time, but the gamble has obviously paid off. Choosing a different route, the U.S. bailed out the banks and let executives off the hook by levying fines that ultimately ended up being paid by the corporations—meaning the executives ostensibly responsible for the mess got off scot-free.

“Why should we have a part of our society that is not being policed or without responsibility?” special prosecutor Olafur Hauksson said after Iceland’s Supreme Court upheld the convictions for three bankers—and sentenced them to between four and five and a half years each. “It is dangerous that someone is too big to investigate—it gives a sense there is a safe haven.”

Hauksson, a police officer from a small fishing village, ended up taking the role of special prosecutor after being urged to do so when the first announcement to fill the position drew no applicants. The Icelandic Parliament even aided the prosecution’s effort by loosening secrecy laws to allow investigation without the hindrance of requiring court orders.

Six of the seven convictions that ended up in Iceland’s Supreme Court have been upheld, and five cases were scheduled for the top court as of February. An additional fourteen cases appear likely to be prosecuted. By contrast, the animosity Americans felt toward their largest financial institutions after the bailout has grown bitter. After the banks pled guilty in May for manipulating global currency and interest rates, the court imposed a paltry fine of $5.7 billion—which won’t even go to the people most affected by the fraud. Iceland’s successful prosecutions and economic recovery remain the subject of envy for Americans.

Shortly, however, Iceland’s economic health will be put to the test.

Strict capital controls that were applied when banks were circling the drain six years ago will now be loosened, allowing foreign investors—whose assets have essentially been frozen since then—to take their business elsewhere. To prevent a possible repeat crisis, the finance minister announced a 39% tax for anyone choosing to do so. “The danger is capital flight and a consequent fall in the value of the krona,” explained University of Iceland economics professor, Thorolfur Matthiasson. “That would be tantamount to October 2008, bringing back bad memories for ordinary people and possibly making most businesses unsustainable due to balance-sheet problems.”

Though many are nervous, there is still cautionary optimism since Iceland has certainly weathered the storm before.

Claire Bernish writes for TheAntiMedia.org, where this article first appeared. Tune in! The Anti-Media radio show airs Monday through Friday @ 11pm Eastern/8pm Pacific. Image credit: Javier Soriano.

Courtesy of Activist Post & Posted on by Claire Bernish

@AceNewsServices

Ace Worldwide News

#althing, #banking, #convictions, #economic-recovery, #financial-crisis, #financial-crisis-of-2007-2008, #iceland, #icelands-supreme-court, #international-monetary-fund, #list-of-sovereign-states-and-dependent-territories-in-europe, #prosecutor, #supreme-court-of-the-united-states, #too-big-to-fail, #united-states, #university-of-iceland

Private Healthcare Companies Are Too Big To Fail

Standards in social are being undermined because the handful of private

English: Wall Street sign on Wall Street

English: Wall Street sign on Wall Street (Photo credit: Wikipedia)

companies which dominated public sector contracts are deemed too big to fail, according to a report by Social Enterprise UK. The report’s authors said that Britain faces “another banking crisis” in the care sector unless charities and social enterprises are given a greater slice of the market.

Ace News Desk: Our take on the story based on:

” Banks Being Too Big To Fail”

There was a phrase someone time ago, that l remember well and it went like this:    ” The  Bigger You Are The Harder You Fall” but we live in times of austerity whereby the rich do not get touched by the hardship of the poor!

Although we have a broken country and the 2008 crisis led us to the brink, we never saw any bank of size fail! Oh initially they were stating that they were unable to trade, due mainly to liquidity. But this liquidity existed in one country at the time, as they moved their funds around! The country in 2008 that brought us the brink was the United States Of America and they had a street that was ” Walled” like some ancient wall of Jericho, and we all know what happened to that eventually, but not now!

But in this global world of cross fertilisation of currency and ideas, it was not long until we were to witness, that what ever happens across the pond, eventually arrives on the United Kingdoms shores!  Then like a greedy monster, it started to devour every financial product insight, just to protect itself!

This was to continue to “ricochet” backwards and forwards for three whole years, with the “blame culture” evident and Wall Street putting up the barriers to protect themselves! The words “Too Big To Fail” became the “Watchwords of the Day” and these monoliths of investment were looking like they may tumble! But they did something, that no other establishments had ever done! They had protected themselves by designing a system, that would stop all comers getting beyond their firewalls, these ” Seven Wall Street Banks” were protected by protecting each other! They defied all rules of “Financial Regulatory Controls” in place at the time, and did not fail!

Now fours years on it is the turn of the ” Healthcare Industry” to become “Too Big To Fail” and then as more of these massive, uncontrolled corporations and institutions, see it works!

Five Giants Of Care According To The Beverage Report

Five Giants Of Care According To The Beverage Report

Another phrase comes to mind

“Much Wants More And Greedy Wants The Lot

#britain, #business, #public-sector, #social-enterprise, #social-enterprise-uk, #too-big-to-fail, #united-states, #wall-street