On Oct. 6, 2008, Iceland’s then-prime minister, Geir Haarde, went on television to tell his countrymen that the nation’s financial system was on the verge of collapse.
Haarde explained that Iceland’s largest banks-Kaupthing Bank hf., Landsbanki slands hf. and Glitnir Banki hf.-collectively owed debt worth many times the nation’s gross national product. The banks’ profits, fueled by a decade of cheap money, had “been something akin to a fairy tale,” Haarde said. After the implosion of Lehman Brothers Holdings Inc. and the deep freeze of global credit markets, the banks could no longer roll over the short-term notes critical to their day-to-day functioning. The bankruptcy of the entire nation, Haarde said, was “a very real danger.”
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
