Iceland has now taken four top bankers from the Kaupthing Bank, which fell apart after the financial crisis of 2008, and convicted them of market manipulation in a groundbreaking case which paves the way for the rest of the world.
Hreidar Mar Sigurdsson, Kaupthing’s former chief executive, former chairman Sigurdur Einarsson, former chief executive of Kaupthing Luxembourg Magnus Gudmundsson, and Olafur Olafsson, the bank’s second largest shareholder at the time, were all convicted this month and face between 4-6 years.
Iceland’s special prosecutor stated that this case was clear evidence that is is possible to go after the fraudulent bankers in the financial industry without negatively effecting the economy. Iceland is known for taking radical action other countries would never consider. This change has bolsters the economy in Iceland and we can only hope other countries follow suit.