Iceland’s Bank Collapse Under Investigation

From the Telegraph (emphasis mine):

For months rumours of share-ramping, market manipulation, excessive loans to their owners and unusual transfers off-shore have been circling Kaupthing Glitnir and Landsbanki, whose failure last October left 300,000 British customers unable to access their money.

It has now become clear that this was no ordinary crash. Iceland’s special investigation into “suspicions of criminal activity” at the three banks is likely to stretch from Reykjavik to London, Luxembourg and the British Virgin Islands.

Eva Joly, the French-Norwegian MEP and fraud expert hired by Iceland and now working with the Serious Fraud Office, now believes it will be “the largest investigation in history of an economic and banking bank collapse”.

Many of the banks’ secrets are likely to be inextricably bound up with corporate Britain and the success of these investigations in tracing and recovering assets is likely to affect every UK household.

That could become interesting. Let’s see how far Mme. Joly can go. It is an interesting development to see that this event is no longer viewed as the  “banks had simply fallen prey to the global credit crisis,” but as a sign of something more deeply wrong.