Iceland’s former prime minister acquitted over role in financial crisis
Last week, Iceland’s high court, the Landsdómir, acquitted ex-Prime Minister Geir H. Haarde of all major charges in the case brought against him over his role in the 2008 financial crisis. The crisis led to the collapse of the country’s three main banks in a matter of days, as the economy entered a deep recession. - On three out of the four charges against him, Haarde was found not guilty. The court judged that he had done all he could to urge the banks to reduce their exposure to foreign debt, that he had not been negligent by failing to react to the danger of a financial crisis, and that he could not be held responsible for having failed to compel the banks to transfer the liabilities for foreign deposits in savings accounts to subsidiaries based in other countries. The only count on which he was found guilty was the token charge of failing to organise a sufficient number of cabinet meetings to discuss the issue of the financial crisis. The court indicated its approval of Haarde’s activities, declaring that he would face no punishment. The judges ruled that his legal expenses for the trial would be borne by the state.