Landsbanki

of the population reported paying a bribe in 2010, however 53% of Iceland’s citizens feel that corruption has increased since 2007. But that is largely due to Iceland’s current affairs. For this case study, I will be looking at the history of the Landsbanki bank and the Panama Papers with respect to Ólöf Nordal and Sigmundur David Gunnlaugsson. On October

The Economic Recovery of Iceland As a result of the financial crisis of 2007/8 Iceland experienced greater economic destruction than most countries, and it was forced to deal with the problem by allowing their economy to collapse and changing it’s approach to the economy. As a result of financial crisis of 2007/8 Iceland experienced greater economic destruction, and chose to deal with the problem by allowing their economy to collapse. Iceland’s democratic government is similar to that of US in

refinancing their short-term debt and a run on deposits in the Netherlands and the United Kingdom. Here are some Factors that lead for such a worst financial crisis: 1. Bad Banking 2. Bad policies Financial Sector: Three major banks Glitnir, Kaupthing and Landsbanki, other saving and investment

words, Icelandic banks issued short-term liabilities in order to invest in long-term assets, a practice which created funding gaps (i.e., liabilities less assets) of a given maturity for the three largest Icelandic banks -- Kaupthing, Glitnir, and Landsbanki. Thus, the banking system had to continuously roll over (renew) their short-term liabilities until their long-term assets fully matured. If an event arose whereby Icelandic banks failed to find new borrowers to continue rolling over their liabilities

and were given priority over unsecured financing. Selective guaranteeing of Icelandic deposits but not others was not received well internationally (especially by UK and Netherlands, depositors in these countries were heavily impacted due to Landsbanki bank’s IceSave accounts). In 2007, more than 50% of the total deposits (in excess of Krona 3 trillion – verify in $) in the Icelandic system were owned by foreign parties. Iceland had entered into an EEA agreement in 1994, in accordance with which

other countries within 1000 years. However, throughout the 1990s and early 2000s, Great changes had taken place in Iceland. The average Icelander became 300% wealthier from 2003 to 2006, and all three of Iceland’s major banks which are Kaupthing, Landsbanki and Glitnir had developed from tiny saving banks in the 1990s to become the world’s top 300 banks a decade later (Gunnlaugsson, 2012). Iceland became the best places for living in this period of time. However, the 2008 world economic crisis sudden

I) Causes of the Crisis On September 15, 2008, the American bank Lehman Brothers, with holdings over 600 billion USD, filed bankruptcy. This was by far the biggest bankruptcy in U.S history and it marked the beginning and the largest financial crisis ever. How can one of the biggest banks in the world fail? How can a bankruptcy in US make someone on the other side of the world unemployed? The answer is Collateralized Debt Obligations (CDOs) and it all started by new innovations in the financial

|GLOBAL FINANCIAL CRISIS |November 12 | | |2008 | | | | PART 2 Introduction

Introduction Europe's debt crisis is a continuation of the global financial crisis and also the result of how Europe attempted to solve the global financial crisis that brought an end to a decade of prosperity and unrestricted debt. European attempts at defending itself against a deep recession, has now created a new crisis of unsustainable and un-serviceable sovereign debt. In early 2010 fears of a sovereign debt crisis, the 2010 Euro Crisis developed concerning some European states including European