Iceland’s highest court has upheld the conviction of senior bankers who were in charge of one of the country’s largest banks, Kaupthing, before the economic collapse. The bankers were convicted of fraud, along with one of the bank’s major shareholders.
The special prosecutor responsible for bringing charges against the convicted bankers said this has set an important example for other countries. Olafur Hauksson said that even though cases of financial fraud are difficult, it is not impossible to secure convictions.
Other countries that suffered from the economic crash beginning in 2008 have not attempted to prosecute bankers but the Icelandic decision could open the door to other cases. Ireland was very badly hit by the recession, having to guarantee the debts of major banks, but there has been very little will to bring charges against senior bankers.