Many readers have expressed their astonishment and indignation here in the comments that those responsible for aspects of Iceland’s economic collapse – particularly those who made a lot of money that seems to have mysteriously vanished – have not been arrested and/or their assets frozen.
Believe me, many of us here are wondering the same thing.
Lately, particularly with the Icesave issue once again thrust into the spotlight, that question has gained a great deal of prominence, and there has been increased anger at the perceived ineffectiveness of the Special Prosecutor’s Office [set up to investigate the bank collapse]. This was particularly true after one of the papers broke the story that neither of the two Björgólfurs [father-and-son who owned Landsbanki, responsible for Icesave] had been called in for questioning by the Special Prosecutor.*
So the other day RÚV interviewed him and asked point-blank what the situation was.
Predictably he was very tight-lipped, but said that there was a great deal of work going on; however, as these were complex cases they took up a great deal of time. In his words “we cannot give a discount on the rule of the law”, adding that the investigations had to be thoroughly and carefully prepared before anyone could be indicted.
Asked whether they had actually “found the money”, the Special Prosecutor responded that a part of the investigation was, indeed, to find out where the money had gone. However, that usually required collaboration with foreign authorities and police jurisdictions, which was, in his words, “very time consuming”.
This basically rhymes with Eva Joly‘s statements in Silfur Egils last year that cases of economic crime that were as large in scope as those here were incredibly complex, and that great care had to be taken in preparation. If they were carelessly prepared, or if judges simply did not understand the issues at hand [which apparently is common] there was a very real chance of acquittals.
So I guess we need to show patience, and trust that Eva Joly and her people are doing their jobs well. I don’t really see that we have much choice.
* At which time Björgólfur Sr. was called in. Coincidence? Or one more proof of the dire need for a free and independent media?
{ 15 comments… read them below or add one }
“or if judges simply did not understand the issues at hand [which apparently is common] ”
And, the evidence for this widespread ignorance is where? I think far too often, when people don’t get the result they want, or a case is badly prepared, its convenient to blame the jury or blame the judge.
I think we need look no further than the Baugur Affair a few years back, with which you are no doubt familiar.
I disagree with your conclusion that Iceland doesn’t really have much choice but wait for the legal process to run its multi-year course to conclusion. In particular, it doesn’t need a conviction before assets can be frozen; they can always be unfrozen later if a party is innocent. That’s the way it works in every other country (for obvious reasons), so why not in Iceland? That’s the real question. Something strange must be going on.
Even if nobody has yet been arrested, suspects could have their assets around the world frozen – either with a civil “Mareva Injunction” or using the criminal law relating to money laundering/proceeds of crime. I wonder why this has not been done – you all know who the suspects are!
To me it appears particularly weird, that the assets of those people are not only not frozen but they are sometime even allowed to keep shares of their former businesses, like Jón Ásgeir Johannesson with Hagar, instead of the (nationalized) banks taking 100% possession of the companies.
And it’s very strange that it is apparently not only considered acceptable but even worth of offering tax rebates, if Bjorgolfur Thor pops up along with some investment company, intending to invest money of questionable source into some server farm.
And another thing, I would like to call a scandal, is the appointment of former chairman of the FSA Jon Sigurdsson as chairman of the Íslandsbanki/Glitnir board before even clarifying his responsibility for the failure of this institution to supervise the banks.
And is there any official investigation into the role of the Central Bank and its former chairman going on?
The government seems prepared to forgive and condone very easily. Where should the trust in the judicial system come from? Maybe, another point on the agenda for pots and pans after resolving the Icesave issue?
One must realize a simple fact – a small socium is usually led (or dictated) by a very few one. This true for jail, college, school, classroom, workplace communities. Resistance is usually futile or has to be accomplished quickly by a very strong leader who is not shy and restricted by moral. One can find such samples in animal world too.
Iceland is a small country by all means. As it was pointed out correctly most of people in Iceland care about their own interests because an “outlaw” can hardly be able to find anything to do.
Small room also means a small room for freedom. This is just so.
There is no surprise Iceland once fell into Norwegian rule, then was inherited by Danish crown. It is really easier to be arbitrated by a third party under such circumstances…
All in all as time go it is hardly possible to expect something sensational from all that serious fraud investigation. Executed properly it would put an end to Iceland as we know it today. It is really better to think about it as a financial tsunami.
As far as I know only one man’s assets have been frozen and he’s all indignant about it and fighting tooth and claw to have the frost removed. Idioty!
Islandsbanki/Glitnir/IceSave- it’s all about two main issues; power and deception. And in the aftermath, how do you minimise the impact of disparities of power on moral decision making. How would your ancestors have dealt with such deception? Beheading? Exile? Assassination? Or would they have insisted that the deceivers hand back their gold as a pre-condition to residency?
Your banksters think they lie outside the boundaries of morality. You can’t allow forgiveness with this bunch. I hope that Icelanders will insist that the Government pursues them with the full force of the law, even if gathering the case against them will, inevitably, take time. Keep the pressure on.
sylvia from viking wirral
Thanks, everyone.
Interesting to get these different takes on the asset freeze — when it’s put that way, then I have no idea either why this is not done.
no idea.
It’s so infuriating — and probably the worst thing is feeling so powerless to do anything about it.
Joerg – a small glimmer among the gloom and doom – Jón Sigurðsson decided not to accept the position at Íslandsbanki. Because he didn’t enjoy “trust”. Well, duh.
kunningjaþjóðfélagið is a word I have came over which seems to cover the bill.
“I think we need look no further than the Baugur Affair a few years back, with which you are no doubt familiar.”
Ohhh meeeooow.
The west thankfully doesn’t have the Robert Mugabe style of justice. I’m not saying there shouldn’t be prosecutions, just that I think you can give the authorities the benefit of the doubt, that they are probably aware of the sensitivities and want to ensure there is no ‘wiggle room’ when/if it comes to trial.
The foundations of Icelandic society are extremely solid and comprise an ultra professional work ethic. The top layer is comprised of amateurs – drawn from an empty talent pool – with little experience or perspective. It is hard to convey – having met many of them – how ill equipped and stupid these people are. Why was a pup like Larus Welding – now struggling at Harvard – moved from one bank to another? Simply as a tool of people like JAJ who ensured he would keep dishing out the money as requested. Ask him a few questions!
Alda,
I thought you would like this link:
http://www.gregpalast.com/the-right-testicle-of-hell-history-of-a-haitian-holocaust/
Marc
There are legal issues. Being careful and preparing the case is proper there. But here is also a set of less than legal issues here.
As in the USA the principle fraudsters in our (and your)economic debacle are most likely going to skate away free with all their ill gotten gains. In fact using what they got from us all…they are increasing their gains, in various legal ways.
Using 18th century legal niceties to justify their enormous theft and making it legal is their cover. Most important here (USA) and there in Iceland is that the laws be updated and changed so that this cannot happen again.
The technical particulars of bank fraud simply do not cover the modern situation which goes beyond all logic and proportion.
Iceland was naturally never supposed to be a big banking issue in Britain or for other European nations. The scale and spread of this modern global finance reality is not covered in US law nor in Icelandic law. How could Florida real estate be an issue for depositors in Hong Kong? But it was! And is yet!
Perhaps one or two of these fellows did what criminals do and they will be caught by the legalities. But I feel quite sure that the majority of assets will have spread around the world for the most part and be unrecoverable.
This is fault of Icelanders and US citizens for being gullible and apathetic during the good times, before the fall and not having changed the laws to accommodate a new modern global reality.
It was a lot to ask of ordinary citizens and it still is. Here (USA) nothing really has changed to prevent more massive disruptions for nothing but greed and playing games with the outmoded system of law and regulation.
It remind me of a quote from a movie. The English Pirate Long John Silver tells his crew “Fortune rides the shoulders of thems what scheme”. It should be the motto of Iceland’s banking and political system, as it is here in the United States.
Big debate in Ireland right now on what kind of inquiry will be held into our own collapse. Every expectation that in the end the outcome will be the same as yours, i.e. no action taken.