Jump to content
House Price Crash Forum
Tired of Waiting

Iceland Ex-Pm Faces Negligence Charges Over Banking Crisis

Recommended Posts

" Iceland's former PM to face charges over banking crisis "

http://euobserver.com/9/30919

" Ex-Iceland PM referred to court over financial crisis "

http://www.bbc.co.uk/news/world-europe-11432362

" Iceland ex-PM faces negligence charges "

http://www.ft.com/cms/s/0/210b59c8-cb37-11df-95c0-00144feab49a.html

Google News search: http://news.google.co.uk/news/search?aq=f&pz=1&cf=all&ned=uk&hl=en&q=Iceland+PM+charges+negligence+banking+crisis

:)

(FT)

" Iceland’s parliament has voted to press negligence charges against former prime minister Geir Haarde, in the first concrete step to hold politicians accountable for the 2008 bank crisis that left the country’s economy in ruins.

The move came after a parliament-commissioned “truth report” earlier this year accused political leaders and regulators of “gross negligence” in their lax oversight of the banking sector before it collapsed.

Tuesday’s vote paved the way for Mr Haarde to become the first Icelandic leader to be tried by a special constitutional court set up in 1905 to hear cases involving elected officials. Punishment for criminal negligence could include a fine or two years in prison.

(...)

Lawmakers voted not to press charges against three other former cabinet ministers: Arni Mathiesen, ex-finance minister, Bjorgvin Sigurdsson, who was business minister, and Ingibjorg Solrun, the former foreign minister.

A criminal investigation is also under way into the failed banks and their former bosses for alleged malpractice. Several former bankers have been questioned and some held in custody, but no charges have yet been brought.

Edited by Tired of Waiting

Share this post


Link to post
Share on other sites

ACCOUNTABILITY.

people in Iceland are very angry,

How long before Brits turn on Gordon Brown, and ask for his neck too.

Maybe they will both wind up in The Hague in adjoining cells, with Greenspan as a neighbor.

Then Gordon can go on and on about how he saved the world to the only audience that might agree with him.

Exactly!

Justice!

Though highly unlikely to be copied here, unfortunately. We tend to fudge things.

Besides, the Greenspan+Brown root cause of this crisis is not even widely understood yet in Britain.

Maybe, perhaps, if we started with a Public Inquiry, and took it from there?

But even in this case, it would probably end up in fudge... :(

.

Edited by Tired of Waiting

Share this post


Link to post
Share on other sites

ACCOUNTABILITY.

people in Iceland are very angry,

How long before Brits turn on Gordon Brown, and ask for his neck too.

Maybe they will both wind up in The Hague in adjoining cells, with Greenspan as a neighbor.

Then Gordon can go on and on about how he saved the world to the only audience that might agree with him.

Really? Politicians choosing who to prosecute. Mostly nobody.

Icelanders want far more of them prosecuted and for longer than a maximum 2year, probably suspended, sentence

Share this post


Link to post
Share on other sites

Prosecution should be straightforward - admission of guilt in writing here:-

Recent times have indeed been turbulent. After a decade and a half of stability, with rising employment and living standards, came the crisis and recession – the biggest economic upheaval since the Great Depression. Before the crisis, steady growth with low inflation and high employment was in our grasp. We let it slip – we, that is, in the financial sector and as policy-makers – not your members nor the many businesses and organisations around the country which employ them. And although the causes of the crisis may have been rooted in the financial sector, the consequences are affecting everyone, and will continue to do so for years to come.

Thankfully, the costs of the crisis have been smaller than those of the Great Depression. But only because we learnt from that experience. An unprecedented degree of policy stimulus, here and abroad, prevented another world slump. Even so, around a million more people in Britain are out of work than before the crisis. Many, especially the young unemployed, have had their futures blighted. So we cannot just carry on as we are. Unless we reform our economy – rebalance demand, restructure banking, and restore the sustainability of our public finances – we shall not only jeopardise recovery, but also fail the next generation.

To my mind, a market economy and its disciplines offer the best way of raising living standards. But a market economy cannot survive on incentives alone. It must align those incentives to the common good. It must command support among the vast majority who do not receive the large rewards that accrue to the successful and the lucky. And it must show a sense of fairness if its efficiency is to yield fruit.

There was nothing fair about the financial crisis. It was caused not by problems in the real economy; it came out of the financial sector. But it was the real economy that suffered and the banks that were

3

bailed out. Your members, and indeed the businesses which employ them, are entitled to be angry. But however legitimate, anger will not produce change unless its energy is harnessed to a cool analysis of what happened and why. So I want to discuss the fundamental causes of the crisis before turning to current policy.

Open ans shut case.

Round 'em all up (there's not that many), take 'em in and charge 'em.

http://www.bankofengland.co.uk/publications/speeches/2010/speech446.pdf

Share this post


Link to post
Share on other sites

Really? Politicians choosing who to prosecute. Mostly nobody.

Icelanders want far more of them prosecuted and for longer than a maximum 2year, probably suspended, sentence

Suspended sounds good. Adding "from a lamppost" would be even better.

Share this post


Link to post
Share on other sites

Really? Politicians choosing who to prosecute. Mostly nobody.

Icelanders want far more of them prosecuted and for longer than a maximum 2year, probably suspended, sentence

Well, it is a start.

And BBC Radio 4 mentioned it this morning.

Let's see if it makes into the TV News, and tabloids.

.

Edited by Tired of Waiting

Share this post


Link to post
Share on other sites

ACCOUNTABILITY.

people in Iceland are very angry,

How long before Brits turn on Gordon Brown, and ask for his neck too.

Maybe they will both wind up in The Hague in adjoining cells, with Greenspan as a neighbor.

Then Gordon can go on and on about how he saved the world to the only audience that might agree with him.

Why would you want to prosecute the savior of the universe, without Gordon's genius intervention we would have no recovery and you want him jailed. Some people really are ungrateful, he'd abolished boom/bust and you want to persecute him. :ph34r:

The other person who also needs jailing for this is Eddie George:

http://www.independent.co.uk/news/business/news/exgovernor-george-says-bank-deliberately-fuelled-consumer-boom-441160.html

The Bank of England deliberately stoked the consumer boom that has led to record house prices and personal debt in order to avert a recession, the former Bank Governor Eddie George admitted yesterday.

Lord George said he and his colleagues on the Monetary Policy Committee "did not have much of a choice" as they battled to prevent the UK being dragged into a worldwide economic slump by slashing interest rates. And he said his legacy to the current MPC was to "sort out" the problems he had caused.

Lord George, who headed the Bank for a decade from 1993, revealed to MPs on the Treasury Select Committee that he knew the approach was not sustainable. "In the environment of global economic weakness at the beginning of this decade... external demand was declining and related to that, business investment was declining," he said. "We only had two alternative ways of sustaining demand and keeping the economy moving forward - one was public spending and the other was consumption.

"We knew that we were having to stimulate consumer spending. We knew we had pushed it up to levels which couldn't possibly be sustained into the medium and long term. But for the time being, if we had not done that, the UK economy would have gone into recession just as the United States did."

He said he was "very conscious" that stimulating consumer demand could give rise to problems in the future. "My legacy to the MPC, if you like, has been 'sort that out'," he said. Under Lord George's governorship, rates were slashed from 6 per cent in 2001 to 3.5 per cent in 2003, pushing house price inflation above 25 per cent and high street spending growth to its highest since the late-Eighties boom.

Share this post


Link to post
Share on other sites

Why would you want to prosecute the savior of the universe, without Gordon's genius intervention we would have no recovery and you want him jailed. Some people really are ungrateful, he'd abolished boom/bust and you want to persecute him. :ph34r:

The other person who also needs jailing for this is Eddie George:

http://www.independent.co.uk/news/business/news/exgovernor-george-says-bank-deliberately-fuelled-consumer-boom-441160.html

Well remembered.

But inflation (RPI) was picking up in 2003, and the BoE was going to increase interest rates in 2004, to curb it. Enters Chancellor Gordon Brown, preventing it, by removing housing costs from the inflation index in Dec 2003 (with one eye on the 2005 general election). Responsibility returns to Brown.

Share this post


Link to post
Share on other sites

Well remembered.

But inflation (RPI) was picking up in 2003, and the BoE was going to increase interest rates in 2004, to curb it. Enters Chancellor Gordon Brown, preventing it, by removing housing costs from the inflation index in Dec 2003 (with one eye on the 2005 general election). Responsibility returns to Brown.

1997:

In his 1997 budget, Brown abolished dividend tax credits on pension funds.

* The CBI opposed Browns Tax credit cuts. Even the treasury and No.10 opposed them. And noted economists wrote to Brown and Blair warning against this. [but Brown made the cuts anyway.]

By abolishing the pensions tax credit, the yield for institutional funds across the entire market fell by 20 per cent. Few people outside the City understood the change and hardly any MPs protested. But Whitehall papers produced under the Freedom of Information act showed that Mr Brown was warned by his officials and by the Treasury that there would be dire consequences. They warned it would wipe £50bn off the value of funds, and that shares could drop by up to 20 per cent and public sector pensions would need topping up. [brown chose to ignore this warning]

* The value of pension funds then lost around £5bn per year since the 1997 tax relief cuts. Pension funds holding the cash that almost everyone in the country had planned to use for our retirement have lost around £100 billion over the last 12 years.

The advice Brown was given by this Treasury Paper, in 1997 was as follows:

'The changes in incentives are likely to lead to substantial changes in portfolios. Pension funds will find equity relatively less attractive, and will prefer other assets – particularly interest bearing securities and foreign equity – and may also be prompted to consider more direct property investment.'

Those funds were then channelled into fuelling an unsustainable property bubble, {BTL portfolios,}

[i do not have the exact figures, for specific years, to hand.

But I have read them before. And in the early years of Labours reign [of Evil,] It was Something like 60% of the houses which would have historically been bought by FTB'ers were then acquired by the BTL brigade]

[i would like to see some accountability in the UK as well. But I do not believe it will happen because the British Government are a bunch of self serving crooked, thieving, amoral, lying f@ckers]

Id also like to take this opportunity to tell Labour apologists to F@@k oFF........

Well done Iceland.

oH, and dont forget Browns epic misuse of PFI..........

Edited by Dan1

Share this post


Link to post
Share on other sites

Could we include some of his speeches as evidence?

-----------------------------------------------------------

Gordon Brown

Speech to the CBI, 5 June 2006

Last year we set out radical proposals for changing the way we regulate: minimising the administrative burdens of regulation; and ensuring that the realities of regulation, as you experience them on the ground, are transformed -- by moving away from the 'old' blanket approach, of 100 per cent form-filling and 100 per cent inspection that is inefficient and wasteful of your time, to a new approach based on RISK…

And I believe, too, we should consider how we can continue to extend our RISK-based approach, applying the concept of RISK not just to the enforcement of regulation, but also to the design and indeed to the DECISION ON WHETHER TO REGULATE AT ALL… "

--------------------------------------------------------------

[The evidence against Brown would be overwhelming. ]

Probably cost the Icelandic taxpayer tens of millions, and he will end up with a slap on the wrist........

For farcical trials, of leading politicians, one should consider the trial of Giulio Andreotti, [7 times Prime Minister of Italy, and a Mafioso, who apparently] ordered hits on journalists, etc.

He then had his convictions, such as life imprisonment, quashed repeatedly.

Which is what would happen if Brown [blair, and co] were tried.

If you have power and money, you can do what you like to whoever you like, when you like.

Ah, Democracy, isnt it wonderful?

[Anyone know of a case of tort, which is relevant? Maybe a civil procedure? Nab their pensions, and taxpayer funded houses?]

Edited by Dan1

Share this post


Link to post
Share on other sites

1997:

In his 1997 budget, Brown abolished dividend tax credits on pension funds.

* The CBI opposed Browns Tax credit cuts. Even the treasury and No.10 opposed them. And noted economists wrote to Brown and Blair warning against this. [but Brown made the cuts anyway.]

By abolishing the pensions tax credit, the yield for institutional funds across the entire market fell by 20 per cent. Few people outside the City understood the change and hardly any MPs protested. But Whitehall papers produced under the Freedom of Information act showed that Mr Brown was warned by his officials and by the Treasury that there would be dire consequences. They warned it would wipe £50bn off the value of funds, and that shares could drop by up to 20 per cent and public sector pensions would need topping up. [brown chose to ignore this warning]

* The value of pension funds then lost around £5bn per year since the 1997 tax relief cuts. Pension funds holding the cash that almost everyone in the country had planned to use for our retirement have lost around £100 billion over the last 12 years.

The advice Brown was given by this Treasury Paper, in 1997 was as follows:

'The changes in incentives are likely to lead to substantial changes in portfolios. Pension funds will find equity relatively less attractive, and will prefer other assets – particularly interest bearing securities and foreign equity – and may also be prompted to consider more direct property investment.'

Those funds were then channelled into fuelling an unsustainable property bubble, {BTL portfolios,}

[i do not have the exact figures, for specific years, to hand.

But I have read them before. And in the early years of Labours reign [of Evil,] It was Something like 60% of the houses which would have historically been bought by FTB'ers were then acquired by the BTL brigade]

[i would like to see some accountability in the UK as well. But I do not believe it will happen because the British Government are a bunch of self serving crooked, thieving, amoral, lying f@ckers]

Id also like to take this opportunity to tell Labour apologists to F@@k oFF........

Well done Iceland.

oH, and dont forget Browns epic misuse of PFI..........

Very interesting post dan1. Thanks for that.

Share this post


Link to post
Share on other sites

http://blogs.telegraph.co.uk/finance/jeremywarner/100007850/why-brown-should-be-joining-icelands-former-pm-into-the-dock/

Iceland’s decision to push ahead with charges of negligence against its former prime minister, Geir Haarde, raises the not entirely frivolous question of whether it might be possible to mount a similar case against Gordon Brown.

Nevermind the alleged war crimes of Tony Blair, ruination of the British economy is a pretty serious charge. The case is quite easily constructed; that he did willfully take the brakes off public spending, that he failed to control the recklessness of the banks, that he stripped the Bank of England of its powers of financial supervision and gave them instead to a shiny new, politically correct but wholly inept regulator, that he misled parliament over the state of the public finances, and that he did gratuitiously insult the hapless Gillian Duffy. I could go on, but let’s not intrude too far into private grief.

In any case, all this would seem quite enough to put him behind bars. Yet as my colleague Ambrose Evans-Pritchard, has just pointed out to me, there is one overarching act of mitigation. He refused to allow Tony Blair to take us into the euro, which had it happened would have sealed our fate as surely as that of Greece, Spain and Portugal. The prisons are quite crowded, I’m told, so perhaps a non custodial sentence is in order.

Someone in the press been reading this thread?

Share this post


Link to post
Share on other sites

Excellent news!!!

And in less than 24h!!!

Why Brown should be joining Iceland's former PM in the dock

blog.jpg

However, I still think it very unlikely, unfortunately. But I do hope I am wrong.

Share this post


Link to post
Share on other sites

Very interesting post dan1. Thanks for that.

;) [Feel free to copy, and paste on other newspaper blogs]

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 238 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.