Monday, Apr 12, 2010
As thick as thieves
BBC: Icelandic authorities 'negligent' over banking collapse
It found that money had been withdrawn by "insiders" only days before the banks went bust. The matter has been referred to Iceland's prosecution service.
Anne Sibert, who now sits on the Icelandic central bank's Monetary Policy Committee, was hired by Landsbanki in January 2008 to produce a report on the vulnerability of the Icelandic banking system.
"I knew nothing about the Icelandic banking system, so I googled it. And after 10 minutes I was horrified… I realised pretty quickly that the situation was not viable", she told BBC News.
Ms Sibert, along with husband and fellow economist Willem Buiter, said the banking system's key weakness was insufficient reserves at the central bank to cover foreign currency liabilities, including UK depositors at Icesave.
3 Comments
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1. devo said...
"I knew nothing about the Icelandic banking system, so I googled it. And after 10 minutes I was horrified…"
Did you not think to ask your husband, Anne?
2. paul said...
It should be remembered that the many of the UK's personal savers and local councils were heavily involved with Icelandic banks because UK interest rates were so low relative to inflation at the time.
So when the UK's central bank points the blame at Iceland, it should be remembered what drove UK savers to Iceland in the first place ...
3. icarus said...
Kleptocrats steal, government is compliant (lax "regulation"), and taxpayers are on the hook. Nothing new here, move along.