Eva Joly compares Iceland crisis to the Ponzi scheme in the US

eva-joly“The Dutch and the British government should look closer when blaming Iceland for the downfall of their banks,” said Eva Joly, high profile to Iceland’s chief investigator concerning the fall of the banks in an interview with The Times. The Icelandic financial crisis is comparable to Bernard Madoff’s Ponzi scheme in the US, she said. There regulators ignored a series of red flags and did not act. The same goes with regulators in Holland and the UK: there were alarms being flagged but local regulators did not act. The Icelandic central bank said back in 2007 that it was too small to back-up Banks like Kaupthing and Landsbanki.

The Financial Services Authority, which had an obligation to monitor the Icelandic banks operating in Britain, has to take a share of the blame and the same goes for regulators in the Netherlands, “they should have acted,” Joly said.

Read the whole interview here

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