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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