Former bank execs in Iceland jailed for banking collapse

Oh how interesting, who would have imagined — jailing bank execs.

We prefer letting our bankers keep all of the bonus money paid out for bogus deals, then let them walk away with millions more. On top of that, we keep distorting the economy and weakening the middle class by diluting any money they leave in the banks, while showering free money onto the entire banking system so that they can maintain their beloved lifestyle.

Gosh, the thought of jailing a banker just sounds so crazy. It’s as if they are actually being held responsible for the destruction they left in their wake of their greedy, self-centered, feeding frenzy. Go figure.

NY Times:

rich guy bank 1%

Rich guy via Shutterstock.

A Reykjavik court sentenced Glitnir’s former chief executive, Larus Welding, and former head of corporate finance, Gudmundur Hjaltason, each to nine months in jail, of which six months were suspended for two years. They had denied the charges.

Prosecutors said the two approved a loan to a company which owned shares in Glitnir so that the company could in turn repay a debt to Morgan Stanley.

The decision, taken outside the regular decision-making process, meant Glitnir was too exposed to the company and cost the bank at least 53.7 million euros (43 million pounds), the prosecution said.


An American in Paris, France. BA in History & Political Science from Ohio State. Provided consulting services to US software startups, launching new business overseas that have both IPO’d and sold to well-known global software companies. Currently launching a new cloud-based startup. Full bio here.

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  • Buford

    This ‘Iceland’ place… I assume it’s run under Sharia law, or some other scary ‘-ism’ system which I don’t fully understand but which are apparently being used by liberals to destroy America…?

  • OtterQueen

    They cost the bank $70 million, and they get 3 months in jail? Well, it’s a step in the right direction.

  • Max_1

    Shhh. Don’t tell Obama this…
    … His DOJ might get ideas.

  • hauksdottir

    The Isle of Jersey, Bermuda, Caymans, etc., are all dinky compared to Iceland.

  • arcadesproject

    You can’t be too big to jail in Iceland cuz Iceland is kind of small so its banksters are on a whole different scale from US banksters so that explains it. Right?

  • Sweetie

    Prison labor. It’s a hot new industry. Ask ALEC.

  • Sweetie

    Those backward Icelanders don’t understand the role of law. The law is designed to fleece the people and line the pockets of the elite.

  • gratuitous

    Wait, what if those two guys were about to create, like, a kajillion jobs??? And now they’re rotting away in jail, and there aren’t a kajillion jobs!

  • RepubAnon

    Holding bankers liable for their fraudulent actions doesn’t sound like a very business-friendly environment. Neither does having both laws against such actions, and the will to enforce those laws.

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