Central Bank of Iceland (CBI) chairman, David Oddsson made a rare public appearance on the Kastljos current affairs programme on RUV television this evening.
Despite speculation that he intended to resign on the show or to break a huge piece of bad news, he actually used the long interview to defend himself, his work and the institution for which he works.
During the interview, a talkative and, at times, fiery Oddsson criticised Prime Minister Johanna Sigurdardottir for her continued keenness for him to leave his job. He argued that the central bank had been warning the government and the commercial banks of their need to downsize at least since spring 2007.
He also said that the central bank has done an admirable job since the banking collapse last October. The central bank has been instrumental in achieving the seemingly impossible tasks of getting the financial system running again and floating the krona currency.
On the issue of his personal unpopularity, Oddsson said that polls showing over 90 percent of the public wanting him to resign were pushed by the “Baugur Press” to make him look bad. Oddsson has a famously bad relationship with the owners of Baugur and several other large companies, and has frequently complained about their media outlets’ bias against him.
His claim to have sent a letter to the police’s Financial Crimes Department in December asking them to investigate Mohamed Bin Khalifa’s purchase of a 5 percent stake in Kaupthing has been confirmed by police sources.
Not only has the Central Bank of Iceland been proactive enough in its job, it has “done as much or even more than most central banks,” Oddsson said.
He also said during the 40 minute long interview, that the hundreds of ‘special’ loan arrangements private companies reached with the old banks was unacceptable, and the fact that the idea of an official investigation is still being “set to one side” is scandalous.
Not really “done as much as most central bankers”. Bernanke and Darling are in constant communication with financial circles and the public about the current state of affairs — Sedlabanki, not. When will Icelandic authorities give a full accounting of Iceland’s position to the public — its total debt, where the debt lies, how it must be accounted for, and so on? How can the Icelandic people possibly vote in an informed manner in the next election when the authorities keep vital information from them? It begins to look as though the authorities are hiding bad news, ALWAYS a grave error.
Eyyyy Oddsson! clean image just a little bit?!!! Anything before assuming responsibility!!!
Arrogance and pride of this man do not have limits: ” downsize at least since spring 2007 ” ; I would prefer – I had prefered – spring 2006, even 2005!!!
It is the Legacy after so many years of Prime Minister: Chairman of the Boards of Governors of the Central Bank of Iceland. Does Iceland need a bird – sorry Chairman – of the Governors???? Does Iceland need three birds – sorry Governors – in Central Bank???? Iceland is a tiny country, and it does not need three birds – sorry, Governors -. Only one!!
He – Oddsson – thinks, … he is the Supreme Head of Iceland, the Almighty. Anything before to leave the den!!!! By the way, what will have the den??? Why does he love it??? What does it hide???
News – whispering – in Brussels speak VERY turbid businesses. Corruption.
His pride will cost him to dear.
Dear Madam, lift his chair with one hand: Oddsson out.
“The central bank has been instrumental in achieving the seemingly impossible tasks of getting the financial system running again and floating the krona currency.” ……….. Where has the krona been floated ??? certainly not outside Iceland !
It was so sad to hear Oddsson speaking defending himself while the crisis unfolded under his nose of historic proportions. I would like to compare him with Mugabe of Zimbabwe who thinks he has saved the country from ‘whites’ and ignores the unimaginable misery his people have been going through under his ‘guard’. The Progressive Party is also trying to blackmail the government and in a way alligning themselves with The Independence Party where they actually belong.
Yes, Oddsson, I mean sedlabanki has been very, very succesful in floating the krona….
This man apparently lives on some planet Oddsson.
First of all – the man deserves some credit for his skills as a public speaker. After viewing the interview yesterday I can totally imagine Icelanders voting for him when he was in parliament and have a large(r) flock of people believing and trusting him today. He just simply walked over the interviewer.
What seems to be forgotten here is that everything else is insignificant considering this man is not like any other central banker, namely politically independent. He is first and foremost still Sjalfstadisflokkur and seems unable to separate his job responsibilities from his political role. He may be technically correct about many things he did to warn the government about a possible failure of the banks, but it was all too little too late. Blaming the ‘Baugur-press’ not to pick up on his warnings is a clear sign of weakness. It all looks to me more like a cover-your-ass strategy rather than taking the responsibility of guarding the health of the financial system. Anyone taking his job seriously and truly independent would have done a lot more to warn the government and public. One must however be clear that his main mandate as central banker is merely to control inflation, for which the government policy was targeted at 2.5%, and left him essentially but to increase the policy rate. This is clearly a lack of competence of the government not to be more pro-active to change this – most notably his own party – as the hard-currency policy is at the basis of the excessive growth of the banks. Oddsson’s role in the nationalization of Glitnir and securing credit lines with other central banks as well as the IMF is at least very doubtful.
Having said all that, the man AND the system have lost all credibility – not just in Iceland but also abroad which is far more important – and need to be adjusted before any recovery of Icelandic economy is possible.
Expertly put NKOTB. Totally agree with your comments.
That was my biggest concern re yesterdays interview .. with all of his shortcomings first and foremost “Dave” is a politician (therefore a top class orator)and I believe that there is no-one in the Icelandic media with enough talent and expertise capable of nailing “him”.
bob
A pity Oddsson wasn’t interviewed by the BBC’s Jeremy Paxman. A thorough grilling until Oddsson broke down. Or bring in Jack Bauer with “you are going to tell me everything you know”…
Power to you David!
The simple fact is the people of Iceland sill want Oddsson.
All this BIG talk of protesters removing him.
BULLSH*T
He is going nowhere!
The king is dead?
Long live the king!
ODDSSON IN !
STILL the best man for the job!
The intire financial crise of Iceland is allmost the disaster of certain group of individuals being in power for so long time.The behavior which I have seen in central bank reminds me THE BEHAVIOR OF TYPICAL AFRICAN LEADERS.When ppl are telling them they are bad and not honest,they come to the media and tel HOW PPL LOVE THEM AND HOW GREAT THEY ARE FOR THIER PEOPLE.
kkkkkkkkk
Why isn’t David Oddsson being registered at the Reykjavik Central Prison?
Oddsson should be in tried for FRAUD!
David Odsson has been fired :)
He left the CB this morning and the law to remove him from the CB was passed a few minutes ago,
the best news i have heard for 18 years.
Alex, this article title does make IceNews look like it edited by childs.
If we see more of like that and the misleading post title here IceNews become lesser and lesser as trusted source of news:
http://www.icenews.is/index.php/2009/02/26/the-two-key-figures-at-central-bank-of-iceland-resign/#comment-66470
( Do please change that one. )
As to interview:
Davið says he has been approached by some people about this alligation of people in high profile position — in media and politicians — asking for and some cases getting special service from banks. And others are not looking at it. He is saying that he told about this and other things because people trust him to not sweep under the carpet. Not just this but other things to.
He not clarify much about what he said in Nov 18 speech but mention that it related to UK FSA get skittish because individual was transfer out Kautthing to Iceland and back of large amounts.
( May well be sameperson he talk of over a trillion krona debts in the main banks he talked of in that speech )
He did also mention IMF has rated Central Bank handling of crisis as A rating Business Ministry as B and FSA as C if remember interveiw correct. Mainly because of long time spent in reconstrucing banks.
Also he right about Central Bank geting things running again. They did do so despite actions of Brown-Darling cutting Iceland off from financial systems through actions end last year.
That Central Bank has trust internationaly that why managed to get it done.
Final message of interview that he does not immediat got back to politics. But he does say main problem is that Red Green government paralysed and not working on stuff important — even vague stuff they said was important. That there no leadership at moment but sliding side ways — and noone in interim government putting positive mesage of action to people.
As we see recently with ooops — suddenly — with election in April now we have no time finish all those important things we had do — says Jóhanna.
Well Red-Green friends if you not waste all time on stupidity of Central Bank law — and you in Socal Democrats your opportunistism of collapsing original collaition with Indepencence Party and making these early elections maybe things be different.
So, by sounds of it after holiday with wife, we be hearing from Davið again.
Hi Fisy,
Thanks for your comment.
Although I appreciate your point of view, I do still stand by the headline to this article. It was intended to illustrate the strong tide of public opinion against Davíð at the time in a semi-humorous way. If you find the headline unfair to him, then I can only apologise and I hope you do not also find the article itself too biased against him…
As for the other headline you mention: it was indeed wrong and I meant to change it at the time. It has now been changed. Thank you for pointing that out!
Thanks for reading IceNews
Alex, editor
>Although I appreciate your point of view, I do still stand by the headline to this article.
It is different to have article with title like that which is opinion-editorial which is perfectly fine thing.
And another to have newswire like article with op-ed headline like it has.
People do take IceNews as serious source. Be carful with keep out bias in non op-ed as you are news wire like service.
As to article content — like others articles here no objections from me in that.
But is important to keep op-ed and newswire article styles seperated. 101 for this kind site or you lose trust of readers. That is what I mean by “look like it edited by childs”.