What country's economy melted down in 2008 following the collapse of banks Glitnir, Landsbanki and Kaupthing?
"system, coupled with Iceland's small size, meant that the central bank was incapable of serving as the lender of last resort if a crisis were to occur. The banks made risky loans and manipulated markets. Iceland's regulators and public institutions were weak and understaffed, and were thus not properly regulating or supervising the banks. Political connections between senior bank managers, key shareholders and elite politicians meant that there was insufficient will to properly regulate the banks. Following sharp inflation in the Icelandic króna during 2008, the three major banks in Iceland, Glitnir, Landsbanki and Kaupthing were placed under government control."
"Security Act 2001 as the basis for seizing the assets of Landsbanki Islands hf, an Iceland-based bank. Icelanders launched an on-line petition drive to protest this action, which is seen as comparing Icelandic banks with Al-Qaida. Iceland's GDP is expected by economists to shrink at least 10 percent as a result of the crisis, putting Iceland by some measure in an economic depression. On 27 January 2009 the government collapsed. On 10 October 2008, the Forint dropped by 10%. The European Central Bank (ECB) announced on 16 October that it was bailing out Hungary with a 5 billion euro (US$6.7"
"2012. On December 12, 2008, by legal act 142/2008, the Icelandic parliament established an investigation commission to, in the words of the law, 'seek the truth behind the events leading to, and the causes of, the downfall of the Icelandic banks in October 2008, and related events', 'granting the Commission 'exceptional investigative powers in order to appease the demonstrators and to meet the public's demand for answers as to why their three largest banks, Glitnir, Landsbanki, and Kaupthing, had collapsed'. As well as arising from popular pressure, the law was passed 'under the leadership of the speaker of the parliament,"
"Iceland's interest rates have been raised to 15.5% to deal with the high inflation. This loss of currency value has put pressure on banks in Iceland, which are largely dependent on foreign debt. On 29 September 2008 Iceland's Glitnir was effectively nationalized after the Icelandic government acquired 75% of the bank's stock. According to the government the bank ""would have ceased to exist"" within a few weeks if there had not been intervention. Iceland's Prime Minister Geir Haarde in a television address on 6 October 2008 said credit lines to Icelandic banks had been cut off and that ""the Icelandic"
"regulations of financial markets. Iceland fell into an economic depression in 2008 following the collapse of its banking system (""see 2008–2011 Icelandic financial crisis""). By mid-2012 Iceland is regarded as one of Europe's recovery success stories largely as a result of a currency devaluation that has effectively reduced wages by 50%--making exports more competitive. The following countries had a recession already starting in the first quarter of 2008: Latvia, Ireland, New Zealand, and Sweden. The following countries/territories had a recession starting in the second quarter of 2008: Japan, Hong Kong, Singapore, Italy, Turkey, Germany, United Kingdom, the Eurozone, the European"
"The Report of the Investigation Commission of Althing Antecedents and Causes of the Collapse of the Icelandic Banks in 2008 and Related Events (), better known as The Report of the Investigation Commission of Althing (, or just ""Rannsóknarskýrsla Alþingis""), and earlier referred to as a 'White Book' (""Hvíta bók""), is a report covering the background and the crash of the Icelandic banking system in 2008. Following the collapse of the Icelandic banking system, Prime Minister Geir Haarde began referring to ' ""a white book"" intended to reveal the truth about the operations of the fallen banks' on December 11,"
"Reykjavík on 24 November. The rescue operations of the central bank along with the restructuring and recapitalization of the banks increased the public debt ratio by about 20 percentage points of GDP. The current economic climate in the country has affected many Icelandic businesses and citizens. With the creation of Nýi Landsbanki, the new organisation which replaces the old Landsbanki, around 300 employees will lose their jobs due to a radical restructuring of the organisation which is intended to minimise the bank's international operations. Similar job losses are expected at Glitnir and Kaupthing The job losses can be compared with"
"strained resulting in the government acquiring it by buying a 75% stake for 84 billion. Even so, it collapsed, and the government revoked its purchase. According to The Report of the Investigation Commission of Althing into the 2008 crash, 'the company which was most extensively in business with the Icelandic banks was Baugur Group and related parties. He borrowed in total, more than a billion dollars from all three national Icelandic banks: Glitnir, Kaupþing, and Landsbanki' After attempts to keep Baugur Group afloat, the Reykjavík District Court declared Baugur Group bankrupt on 11 March 2009. Ímmediately after the crash, Jón"
"percentage of GDP in Iceland lagged considerably behind the social expenditures in the other Nordic states during the 20th century. There are two primary reasons in the academic literature for why Iceland lagged behind: The ""Nordic Tiger"" period ended in a national financial crisis in 2008, when the country's major banks failed and were taken over by the government. Iceland went from the fourth richest country in the world (GDP per capita) in 2007 to the 21st place in 2010. According to a 2011 study, Iceland privatized its banks in the early 2000s and the rapid expansion of the banking"
"economic crisis in Iceland involved all three of the country's major banks. Relative to the size of its economy, Iceland's banking collapse is the largest suffered by any country in economic history. At the end of October UBS revised its outlook downwards: the forthcoming recession would be the worst since the early 1980s recession with negative 2009 growth for the US, Eurozone, UK; very limited recovery in 2010; but not as bad as the Great Depression. The Brookings Institution reported in June 2009 that US consumption accounted for more than a third of the growth in global consumption between 2000"
"from the country after the collapse, and many of those moved to Norway. In 2005, 293 people moved from Iceland to Norway; in 2009, the figure was 1,625. In April 2010, the Icelandic Parliament's Special Investigation Commission published the findings of its investigation, revealing the extent of control fraud in this crisis. By June 2012, Landsbanki managed to repay about half of the Icesave debt. According to Bloomberg, Iceland is on the trajectory of 2% unemployment as a result of crisis-management decisions made back in 2008, including allowing the banks to fail. Iceland has a high level of car ownership"
"such as metallurgy and machine building are laying off workers, and real wages have started to fall for the first time in a decade. The Norwegian government pension fund suffered an investment loss of $92 billion during 2008. However, the overall value of the fund rose due to oil sales and currency movements. With economic growth ceasing by the end in 2008, the Croatian economy entered a crisis that exposed numerous structural issues and unsustainable growth mechanisms, causing the period of instability to fester until as late as 2015. The country was still in the midst of what was effectively"
"the banking practices that led to the collapse of the country's largest banks in the 2008 financial crisis, as well as the popular belief among Icelanders in the existence of ""Huldufólk"" (elves). In Norway, he highlights the rise of far-right politics, the widespread opposition to immigration, and the multiple high-profile Norwegian neo-Nazis. He notes that despite having a ""nature-loving"" reputation, Norway has a large ecological footprint, and that the sale of fossil fuels accounts for much of the country's wealth. He recounts Finland's history of heavy alcohol consumption and its high rates of murder, suicide, and antipsychotic drug use. He"
"Intent. The conditionalities include details of Banking Sector restructuring, changes to Fiscal Policy including government austerity and changes to exchange rate policies. Following the global financial crisis in 2007-2008 Iceland's banking sector collapsed leading to wide ranging unemployment and a lessening of support for the Icelandic currency - the Icelandic Krona ISK. This was triggered by an insolvency of the private banking sector. The largest Icelandic banks had liabilities in excess of 80 percent of GDP . Iceland requested assistance from the IMF and from its Nordic partners in the Nordic Council. The goal of Iceland in this market intervention"
"broadsheet newspaper, ""Morgunblaðið"", along with the associated internet news portal ""mbl.is"". Björgólfur's chairmanship at Landsbanki ended when, on 7 October 2008, the Icelandic Financial Supervisory Authority (FME) decided to take over Landsbanki's operations, replacing its board of directors. After the almost total collapse of the Icelandic banking system in 2008, Björgólfur Guðmundsson was pointed out as one of the main players behind the Icelandic economic disaster in all Icelandic media including the Icelandic National Broadcasting Service (RUV) and all major newspapers. Björgólfur declared his personal bankruptcy in 2009, owing $750m, $500m of which he owed to Landsbanki. This seems to"
"0.2 percent in the fourth quarter of 2007. Revised data for Denmark, however cancelled the early recession, as GDP ended at +1.0% in Q4 2007 followed by -1.4% in Q1 2008 and +1.5% in Q2 2008. So according to revised data, the Great Recession only started in Denmark in Q3 2008. Latvia's gross domestic product fell 0.2 percent in the second quarter following a fall of 0.3 percent in the first quarter. Economists at Switzerland's second-largest bank predicted a recession in 2009. Estonia saw an economic contraction of 0.9 percent in the second quarter of 2008, following a 0.5 percent"
"by the Reykjavik district court. On 12 February 2015 Iceland's Supreme Court upheld his conviction, but reduced the sentence to four years in prison. Sigurður Einarsson (economist) Sigurður Einarsson (born 19 September 1960) is an Icelandic economist, businessman, and one-time chairman of the failed bank Kaupþing, and has been called 'Iceland's most controversial banker'. He was among the so-called Icelandic 'raiding Vikings' (""útrásarvíkingar"") until the 2008–2011 Icelandic financial crisis, being paid an average of twelve million Icelandic krónur per month in 2007. In a statement which he issued on October 9, 2008, he attributed the collapse to Kaupþing to a"
"continue with the accession process. The 2008 economic meltdown hit most European countries hard, as well as Croatia. The crisis continued throughout the following years. Industry shed tens of thousands of jobs, and unemployment soared. Consumer spending reduced drastically compared to record 2007 levels, causing widespread problems in the trade as well as transport industries. The continuing declining standard resulted in a quick fall in both the Prime Minister's as well as government's support. Milanović was very critical of the Government's supposed slow response and inadequate measures that did little to revive the economy. The recession and high unemployment continued"
"Inflation and interest rates are raging upwards. The krona, Iceland's currency, is in freefall."" These articles spooked investors discussing Icesave (the brand name of Landsbanki in the UK and the Netherlands) in online forums and many started moving their savings out of the Internet bank. Problems with access to the site hinted at a run on savings. On 6 October, a number of private interbank credit facilities to Icelandic banks were shut down. Prime Minister Geir Haarde addressed the nation in a speech that became infamous for its portentous closing words: 'God bless Iceland'. He announced a package of new"
"to the 2008–2011 Icelandic financial crisis. On 31 July 2009, internal documents from Kaupthing Bank were leaked: WikiLeaks exposed a confidential 210 page document listing Kaupthing's exposure to loans ranging from 45 million to 1.25 billion euros. The leaked presentation revealed the bank had loaned billions of euros to its major shareholders, including a total of €1.43 billion to Exista and subsidiaries which own 23% of the bank. On 9 December 2009, Daniel Thordarsson, former asset manager, and Stefnir Ingi Agnarsson, former stock broker, both of Kaupthing Hf, were sentenced to eight-month prison terms by the Reykjavik District Court. The"
"Latvia in 2014 and Lithuania entered the Eurozone in 2015. In 2008, the global financial crisis triggered the collapse of the Baltic property markets, causing some of the most severe recessions in Europe. In 2008, Latvia's GDP shrank by −4.6% and Estonia's −3.6% while Lithuania's slowed to 3.0%. As the crisis swept across Eastern and Central Europe the economic reversal intensified: Estonia's GDP dropped by -16.2% year-on-year, Latvia’s by −19.6% and Lithuania’s by −16.8%. By mid-2009, all three countries experienced one of the deepest recessions in the world. In 2010 the economic situation in the Baltic states stabilized and in"
"A subsidiary of Landsbanki, Icesave, which operated in the UK and the Netherlands, was declared insolvent, putting the savings of thousands of UK and Dutch customers at risk. It also transpired that over 70 local authorities in the UK held more than £550 million of cash in Icelandic banks. In response to statements that the accounts of UK depositors would not be guaranteed, the British governments seized assets of the banks and of the Icelandic government. On 28 October 2008, Iceland's central bank raised its interest rate to 18 per cent to fight inflation. Following negotiations with the IMF, a"
"Guarantee Fund"" arise from the 2008–2012 Icelandic financial crisis, which saw Iceland's three main commercial banks collapse within the space of a week. One of those banks, Landsbanki, had taken retail deposits from more than 400,000 British and Dutch customers through its branches in London and Amsterdam, through a product known as ""Icesave"". At the time of the economic collapse, the ""Depositors' and Investors' Guarantee Fund"" had equity of only 10.8 billion krónur, about €68 million at the exchange rates of the time and far from sufficient to cover the Dutch and British claims. The initial reaction of the Icelandic"
"quotas were reduced, leading to a decline in the catch to 87,121 tonnes in 2010. There have been increased numbers of Atlantic mackerel, the ""Miracle of the Mackerel."" in the 21st century as the Atlantic Ocean has slightly warmed. The Icelandic banking system has been completely overhauled in the wake of its collapse in 2008. There are now three major commercial banks, NBI (commonly referred to as Landsbanki), Arion Bank (formerly Kaupthing Bank) and Islandsbanki (formerly Glitnir). There are smaller banks, including Kvika banki (formerly MP Straumur), and some savings banks. There has been extensive consolidation of smaller banks, with"
"the assets of Landsbanki in the UK. Under the Landsbanki Freezing Order 2008, passed at 10 a.m. on 8 October 2008 to come into force ten minutes later, the Treasury went on to freeze the assets of Landsbanki and assets belonging to the Central Bank of Iceland, and the Government of Iceland relating to Landsbanki. The freezing order took advantage of provisions in Part 2 of the Anti-terrorism, Crime and Security Act 2001, and was made ""because the Treasury believed that action to the detriment of the UK's economy (or part of it) had been or was likely to be"
"Landsbanki Landsbanki (literally ""national bank""), also commonly known as Landsbankinn (literally ""the national bank"") which is now the name of the current rebuilt bank (here called ""New Landsbanki""), was one of the largest Icelandic commercial banks that failed as part of the 2008–2011 Icelandic financial crisis when its subsidiary sparked the Icesave dispute. On October 7, 2008, the Icelandic Financial Supervisory Authority took control of Landsbanki and created a new bank for all the domestic operations called Nýi Landsbanki (new Landsbanki) so that the domestic bank could continue to operate, the new bank continued to operate under the Landsbanki name"
"entire Eurozone. Iceland made a dramatic recovery after it filed for bankruptcy in 2008, in part by devaluing the krona (ISK). In 2013, it enjoyed an economic growth rate of some 3.3 percent. Canada was able to improve its budget position in the 1990s by devaluing its currency. However, the consequences of ""Grexit"" could be global and severe, including: Greece could accept additional bailout funds and debt relief (i.e., bondholder haircuts or principal reductions) in exchange for greater austerity. However, austerity has damaged the economy, deflating wages, destroying jobs and reducing tax receipts, thus making it even harder to pay"
"economy, in the worst case, could be sucked with the banks into the whirlpool and the result could be national bankruptcy"" and that the government was looking to other countries for sources of liquidity. Iceland's parliament responded to the crisis by approving a bill giving the Government wideranging powers over the banks, including the ability to seize their assets, force them to merge or compel them to sell off their overseas subsidiaries. The parliament went on to seize control and nationalize Iceland's second largest bank, Landsbanki, on 8 October 2008. The Parliament also extended a £400m loan to the nation's"
"the 2,136 registered unemployed and 495 advertised vacancies in Iceland at the end of August 2008. Other companies have also been affected. For example, the private Sterling Airlines declared bankruptcy on 29 October 2008. The national airline Icelandair has noticed a significant slump in domestic demand for flights. However, the airline states that year-on-year international demand is up from last year. Guðjón Arngrímsson, a spokesman for the airline, said ""we're getting decent traffic from other markets... we are trying to let the weak [króna] help us."" He has also stated that it is impossible to predict whether the company will"
"and Iðnaðarbanki (Industrial Bank). After its 2000 merger with FBA Icelandic Investment Bank, the bank was briefly renamed Íslandsbanki-FBA, but ""FBA"" was dropped from the name in 2002. In 2006, the bank again rebranded itself as Glitnir. The bank was re-established on 15 October 2008 under the name Nýi Glitnir (""New Glitnir"") to take over the Icelandic operations of Glitnir banki hf. The name was changed back to Íslandsbanki on 20 February 2009. The name Glitnir was deemed to be unreliable after the financial collapse, and a new logo was designed based on the old Glitnir and Íslandsbanki logos. By"
"a new referendum. The background for the Icesave bills, was that the privately owned Icelandic bank Landsbanki was declared bankrupt on 7 October 2008. One day earlier the Icelandic state had passed an emergency law to guarantee for a full coverage of all lost deposit amounts for domestic Icelandic customers in any bankrupt Icelandic bank, while insisting however not to guarantee anything towards the foreign customers. This caused a split of Landsbanki into two parts, a domestic version (Nýi Landsbanki) -owned and fully guaranteed for by the Icelandic state- to be continued only with domestic customers and assets, and a"
"housing loan interest rates have gone up even further. The global sales especially of cars has gone down, forcing the Swedish car industry to lay off staff and contractors. The increased fear of enduring recession and the increased financing costs have lowered company investments and private consumption. Sweden entered recession after a two consecutive quarter of economic contraction. Sweden's economy showed zero growth in the second quarter of 2008. The Swedish GDP contracted by 0,1% during both the second and third quarters of 2008. Sweden's economy sank into recession in the third quarter of 2008. In October retail sales dropped"
"while Kaupthing was subjected to a rescue plan. On October 6, the Icelandic Financial Supervisory Authority decided temporarily to suspend from trading on regulated markets all financial instruments issued by Glitnir banki hf., Kaupþing banki hf., Landsbanki Íslands hf., Straumur-Burðarás fjárfestingarbanki hf., Spron hf., and Exista hf. Before the opening of the business day, October 6. BNP Paribas, the French bank, assumed control of the remaining assets of Fortis following Dutch nationalization of the operations of the bank in The Netherlands. Denmark, Austria, and possibly Germany, joined Ireland and Greece in guaranteeing bank deposits on Monday, October 6. Following this,"