with the September 15 Lehman bankruptcy and continuing beyond
the September 19 rescue of the mutual fund industry, the U.S.
government did whatever was necessary to bail out the financial
industry. It spent $85 billion to keep AIG out of bankruptcy;
allowed Goldman Sachs and Morgan Stanley to convert from investment
banks into more traditional commercial bank holding companies,
operating under far stricter Government supervision; encouraged
Bank of America to purchase Merrill Lynch, and stood ready
to support the entire mutual fund industry. Realizing that
the crisis had crossed global lines, the U.S. added hundreds
of billions to its swap lines to aid the European Central
Bank and foreign central banks.
the end of September, with hat in hand, Paulson crawled up
to Congress nearly begging for a $700 billion bailout fund.
Congress initially balked -- and this action sent the Dow
further down -- before approving on Oct. 3 an amended bill
known as the Emergency Economic Stabilization Act of 2008.
stock market showed what it thought of this Act -- it fell
18 percent the following week. The crisis continued to spread
internationally. Iceland essentially lost its banking sector.
The United Kingdom essentially forced HBOS, the U.K.'s largest
mortgage lender, into the Lloyds TSB Group and nationalized
Bradford & Bingley, another big mortgage lender. Governments
in Belgium, France, the Netherlands, Spain and Switzerland,
took similar actions to save their own over-leveraged and
undercapitalized banks. The Lehman bankruptcy nearly wiped
out Norway's government pension fund.
put everything into its proper context, I am reproducing the
beginning of Chapter 33 "Wall
Street Coup de Etat, and Banker False Flags Against America"
of my Trilogy. Here, I explain how Goldman Sachs bullied
the U.S. Congress and "pulled the trigger" on Lehman
Max Keiser, who I reproduce below, told Alex Jones that a year
before the Oct 2008 collapse of Iceland, he met some Goldman
Sachs executives in a bar in Iceland who told him that they
were planning on deliberately taking down the Icelandic economy
in about a year. (See the 22 April 2010 Alex Jones 3rd hour
interview with Bill Murphy of GATA, about 40% through this interview,
where Jones recounts this anecdote. Jones also described how
Goldman Sachs deliberately helped certain Greek government officials
hide their nation's true indebtedness to get into the EU. In
April 2010 Goldman Sachs was finally brought under U.S. federal
October 2008 America’s central bank –the Federal
Reserve or “Fed”—and closely allied top
Wall Street investment banking houses made a shocking display
of arrogance. They dictated a massive cash infusion
of $700 billion from Congress.
year later "the Hidden Hand" behind Wall Street
and the Federal Reserve made a more subtle but no less shocking
show of arrogance. Despite the fact that Congressman Ron Paul
finally put together a Congressional majority to support making
a preliminary audit of the Fed --which has never been seriously
audited since its founding in 1913 --this bill nevertheless
ran into a brick wall.
back to the October 2008 shakedown, French 24 TV's show "Face-Off;
Street: Has It Learned Its Lesson?" interviewed independent
analyst Max Keiser about this shocking event:
Interviewer: Max, if I could start with
you. What is it about Goldman Sachs. How does it manage
to turn figures around like that? Max Keiser: Well, Goldman Sachs are scum.
I mean that is the bottom line. They have basically coopted
the U.S. Government. They have coopted the Treasury Department,
the Federal Reserve functionality. They have coopted the
Obama administration. Barack Obama dances, you know, to
Goldman Sachs. And they are really crooked and abominable
in what they have done. Remember Hank Paulson held Congress
hostage. Took them in the back room and said, "Give
us $700 billion dollars or we are going to crash this market.
He is an arsonist. He is an outlaw. And yet he is given
praise --" Interviewer: He is Treasurer and former
CEO at Goldman Sachs-- Keiser: Sure, but if you go down the list
they are all Goldman Sachs scum, whether it is Hank Paulson
[or] Geitner who has very close ties to Goldman Sachs, and
of course all these banking bonuses are paid out to all
their cronies, who are Goldman Sachs scum, and America for
some reason has allowed this coup de etat to take place.
This silent coup de etat where Goldman Sachs and their friends
now control the U.S. Government and they are manipulating
Max Keiser takes offense to Goldman Sachs
1 of 2). See also Part
investment banks had been in very serious trouble for many
years prior to October 2008 due to a variety of factors, to
include the extreme amount of debt accumulating throughout
most sectors of the U.S. economy. The Federal Reserve had
been following a longstanding strategy of reinflating asset
bubbles to stave off an asset deflation and massive recessions,
and now the housing bubble had run its course. The "powers
that be" decided that someone had to be thrown to the
wolves. This go around, "Jewish lightning" would
just happen to strike the Jewish-founded investment banking
firm with the Jewish name of Lehman Brothers on the highly
Kabbalistic date of September 11th. (Interestingly enough,
a report surfaced that Lehman transferred $400
billion to Israel just before the unlucky date. This merits
The Fall of Lehman Brothers P1, YouTube
caption: "On September 15, 2008, the firm filed for Chapter
11 bankruptcy protection following the massive exodus of most
of its clients, drastic losses in its stock, and devaluation
of its assets by credit rating agencies. The filing marked the
largest bankruptcy in U.S. history..." A fascinating look
at the personalities and values behind Lehman Brothers and Fed-Wall
Street crisis management groups --who leveraged their balance
sheets 20-40 times in a housing bubble. Part 4 documents the
episode where the British government, combined with the U.S.
Fed, blocked the rescue of Lehman, creating a `financial crash
9/11' that would later be used to suck trillions of dollars
in bailout money from the U.S. taxpayer. See the complete series:
5, and Part
6.See also the sequel "Back From
the Brink" Part
4, and Part
year after the bankruptcy of Lehman Brothers on September
15, 2008, questions still swirl around its collapse. Lawrence
MacDonald, whose book A Colossal Failure of Common
Sense came out in July 2009, maintains that the bank
was not in substantially worse shape than other major
Wall Street banks. He says Lehman was just “put
to sleep. They put the pillow over the face of Lehman
Brothers and they put her to sleep.” The question
Lehman Brothers filed for bankruptcy on Monday, September
15, 2008, it was actually “bombed” on September
11, when the biggest one-day drop in its stock and highest
trading volume occurred before bankruptcy. Lehman CEO
Richard Fuld maintained that the 158 year old bank was
brought down by unsubstantiated rumors and illegal naked
short selling. Although short selling (selling shares
you don’t own) is legal, the short seller is required
to have shares lined up to borrow and replace to cover
the sale. Failure to buy the shares back in the next three
trading days is called a “fail to deliver.”
Christopher Cox, who was chairman of the Securities and
Exchange Commission in 2008, said in a July 2009 article
that naked short selling “can allow manipulators
to force prices down far lower than would be possible
in legitimate short-selling conditions.” By September
11, 2008, according to the SEC, as many as 32.8 million
Lehman shares had been sold and not delivered –
a 57-fold increase over the peak of the prior year. For
a very large company like Lehman, with plenty of “float”
(available shares for trading), this unprecedented number
was highly suspicious and warranted serious investigation.
But the SEC, which was criticized for failing to follow
up even on tips that Bernie Madoff’s business was
a ponzi scheme, has yet to announce the results of any
Lehman was indeed sacrificed, who pushed it and to what
end? Some critics point to Henry Paulson and his cronies
at Goldman Sachs, Lehman’s arch rival. Goldman certainly
came out on top after Lehman’s demise, but there
are other possibilities as well, involving more global
players. The month after Lehman collapsed, Gordon Brown
and the EU leaders called for using the financial crisis
as an opportunity to radically enhance the regulatory
power of global institutions. Brown spoke of “a
new global financial order,” echoing the “new
world order” referred to by globalist banker David
Rockefeller when he said in 1994: “We are on the
verge of a global transformation. All we need is the right
major crisis and the nations will accept the new world
April 2009, Gordon Brown and Alistair Darling hosted the
G20 summit in London, which focused on the financial crisis.
A global currency issue was approved, and an international
Stability Board was agreed to as global regulator,
to be based in the controversial Bank for International
Settlements in Basel, Switzerland. The international bankers
who caused the financial crisis are indeed capitalizing
on it, consolidating their power in “a new global
financial order” that gives them top-down global
her article "Economic
9-11: Did Lehman Brothers Fail or Was It Pushed?,"
Ellen Brown makes some other very important points. The
fall of Lehman was a "controlled financial demolition"
that resulted from the deliberate dithering of Alistair
Darling, the UK Chancellor of the Exchequer. In fact, Ms.
Brown claims that Darling also engineered the "controlled
financial demolition" of another important financial
institution on 9-11 of the prior year, namely a major British
firm called Northern Rock.
was Bear Stearns saved from bankruptcy but Lehman Brothers
was not? How could the decision makers not realize the
dire consequences of letting Lehman go down?
possible explanation is that they actually thought the
bank would be bought out at the last minute, just as Bear
Stearns was. In both cases, the parties worked feverishly
over the weekend after the stock’s collapse to try
to negotiate a deal. For Bear Stearns, the negotiations
succeeded, with the help of the New York Federal Reserve,
which provided the loan used by JPMorgan Chase to complete
the deal. With Lehman, however, the interested buyer was
British, and the help that was needed was from the UK
Chancellor of the Exchequer, Alistair Darling. The weekend
after the September 11 stock collapse, intense negotiations
were pursued with Barclays Bank, which was prepared to
underwrite Lehman’s debts; but it needed a waiver
from British regulators of a rule requiring shareholder
approval. Negotiations continued until the market was
getting ready to open in Japan on Sunday, but UK Chancellor
of the Exchequer Alistair Darling would not give the necessary
waiver. He said something to the effect that he did not
want to infect Britain with America’s cancer. The
sentiment was understandable, but the question was, why
did he wait until it was too late for the Treasury or
the Federal Reserve to move in with other arrangements?
issue takes on more significance in light of the fact
that Chancellor Darling played a similar role in another
9-11 collapse the previous year. On September 11, 2007,
frantic customers were lining up outside Northern
Rock, the UK’s fifth largest mortgage lender,
in the first British bank run in 141 years. The bank’s
shares plunged 31% in a single day. Like the collapse
of Lehman Brothers in the U.S., the bankruptcy of Northern
Rock changed the rules of the game. Britain’s major
banks too would now be saved at any cost, in order to
avoid the loss of customer confidence, panic and bank
runs that could precipitate a 1929-style market crash.
Northern Rock, as with Lehman Brothers, Alistair Darling
could have saved
the day but backed down. Northern Rock had a willing
buyer, Lloyds TSB; but the buyer needed a loan from the
Bank of England, which the Bank’s Governor, Mervyn
King, had denied. Darling was advised by his staff to
overrule the Governor and grant the loan, but this would
have cost political capital for UK Prime Minister Gordon
Brown, who had been widely lauded for giving the Bank
of England its independence in 1997.
now the reader should be getting the impression that leverage
problems are vastly broadly, deeper, and more systemic in
the global financial system than anything to do with just
Lehman Brothers and Iceland.
upon the blackmail of Congress in October 2008, combined
with the subsequent "Stimulus Bills" and literally
tens of trillions of dollars drained from the U.S. taxpayer
in following years, the collapse of Lehman and bankruptcy
of Iceland was engineered as a highly visible collapse to
shock the U.S. public into bailing out the banking sector.
the collapse of the World Trade Center Towers and attack
on the Pentagon on 9-11-2001 was used to justify the expenditure
of trillions of dollars on the operations of America's military
industrial complex and Israel in the Middle East. According
to Paul Joseph Watson in his article "Cost
Of Bailout Hits A Whopping $24 Trillion Dollars $80,000
for every American," 30 July 2009, PrisonPlanet.com:
to the watchdog overseeing the federal government’s
financial bailout program, the full exposure since 2007
amounts to a whopping $23.7 trillion dollars, or $80,000
for every American citizen. The
last time we were able to get a measure of the total
cost of the bailout, it stood at around $8.5 trillion
dollars. Eight months down the line and that figure has
$23.7 trillion figure comprises “about 50 initiatives
and programs set up by the Bush and Obama administrations
as well as by the Federal Reserve,” according to
the sake of intellectual completeness, there is a whole dimension
of ethnic nationalist political analysis that needs to be
superimposed on top of all of this in order for the reader
to fully appreciate the ironies and tragedy unfolding here.
Let me at least provide a brief overview here, before I provide
more details in the nationalist analysis section later.
Nordic countries produce more technological innovation per
capita than most other countries or peoples on the planet.
The largely Nordic-WASP populations of American and Britain
led the industrial revolution of the 19th century. More than
most other peoples, Nordics have the innate capacity to successfully
execute long term industrial development plans.
the path of industrialization is an arduous road demanding
considerable discipline, in the long run it is the best road
to raise productivity and living standards. As Eamonn
Fingleton explains in Praise
of Hard Industries: Why Manufacturing, Not the Information
Economy, Is the key to Future Prosperity, only the
industrialization process has the capability to infinitely
scale up productivity and output of real goods for a
society. In contrast, financial industries can easily degenerate
into paper-swapping casinos where ownership changes, but nothing
useful ever gets created.
the September-October 2008 shakeout, Lehman Brothers and Iceland
found themselves packed inside the proverbial "Lifeboat
Ethics" paradigm alongside other high rolling globalist
financiers as storm waves were rising. Lehman Brothers and
Iceland obviously got thrown overboard, whereas the "better
connected" such as Goldman Sachs, JP Morgan Chase, Citibank,
Bank of America, Barclay's and other City of London favorites
were allowed to stay on board. According to Paul Watson of
Prisonplanet.com, the "in crowd" has received life
the tune of $24 trillion.
great tragedy for Iceland is that it never had to be inside
this international financial services "lifeboat"
in the first place. It could have instead followed a nationalist
policy of developing hard industries first and stockpiling
resources to help insulate itself from international financial
storms rather than sail right into the middle of them.
President Accuses England, Holland of Financial Bullying.
Post Feb 1, 2010, caption: "Iceland's president
accused the United Kingdom and the Netherlands on Friday of
financially bullying his country. Olafur Ragnar Grimsson said
the two countries had been using their influence within the
International Monetary Fund to stop it lending Iceland billions
of dollars needed to rebuild the country's debt-ridden economy.
We are being bullied. The British and the Dutch are using their
influence within the IMF to prevent the IMF program from going
forward, Grimsson told CNNs Richard Quest."
the beginning of his 29 Jan 2010 interview by CNN's Richard
Quest (above), Olafur Ragnar Grimsson, the President of Iceland,
explained how Iceland got thrown off the life boat by the City
of London gang in October 2008:
President Olafur Ragnar
Grimsson: ...[Nothing makes me] more profoundly disappointed
and sad that the government of this enlightened country [the
UK] should in October 2008 decide on two things; one was to
employ the terrorist legislation which was created to defend
against Al Qaeda and the Taliban, put my country, their government,
and the entire system on the official web site, the British
government web site, side by side with Al Qaeda and the Taliban.
And the second thing was that Gordon Brown, in October, and
Alistair Darling, went on global television, including CNN,
and stated that Iceland was a bankrupt country, which was
utter nonsense at its best, financial terrorism on their part
at its worst. And this meant that companies all over the world
who had had dealings with Iceland closed their operations
down so that the British damaged our economy to a greater
extent than otherwise would have been the case. Richard Quest: So why not simply say, "Your
banks would not reimburse if it was elsewhere, our banks --everyone
knew the risks-- we are not paying, good morning, on you go." Grimsson: Well there are a number of people
in my country who are saying exactly that. Quest: Why don't you do that? Grimsson: We are saying that ordinary people,
taxpayers, should not be put in a position -- Quest: Iceland is being bullied at the moment-- Grimsson: Of course we are being bullied.
Of course. The British and the Dutch are using their influence
within the IMF to prevent the IMF program from going forward.
So we have a situation where a small nation is in fact ready
to shoulder part of this burden, but does not want to be put
in a corner where the very survival of its economy in the
next ten years would be at stake.
obtain another important Icelandic insider's viewpoint from
the 15 Aug 2009 New York Times book review titled
"The Little Economy That Couldn't" by Harry Hurt
III, New York Times book about a book titled “Why
Iceland? How One of the World’s Smallest Countries Became
the Meltdown’s Biggest Casualty” by Asgeir
Jonsson. One gets the sense that Wall Street banking houses
enticed Icelanders to leverage themselves with aggressive overseas
expansion. Knowing that Iceland's central bank was inadequate
to bail them out in the event of a major financial storm, they
misled David Oddsson and other Icelandic leaders to believe
that the UK, Netherlands, and U.S. central banks would always
be available as a backstop. In other words, first it was "We
are your staunch longstanding NATO allies and fellow Western
defenders of democracy, don't you know." Then when the
storm hit, they changed the implied rules of the game, and it
was "Iceland who?"
Jonsson says Iceland’s plunge was not caused by criminality
or bad luck, and he makes his case with a store of insider
knowledge. A native Icelander and the author of several books
about Icelandic history and economics, he is head of research
and chief economist at Kaupthing Bank, which as the largest
bank in Iceland was a central figure in the crisis...
order to grow, Kaupthing bankers had to find opportunities
overseas. Iceland’s central bank didn’t have the
regulatory authority of the Federal
Reserve of the United States. And lacking a “lender
of last resort,” Mr. Jonsson says, Icelandic banks had
to rely on international wholesale credit markets for financing.
everything fell apart, Kaupthing and rival institutions like
Landsbanki and Glitnir built a financial empire worth —
at least on paper — 10 times their country’s gross
domestic product. The wealth of the average Icelandic family
October 2008, just days after the fall of Lehman
Brothers, the Icelandic house of cards toppled. The collapse
was caused by a sudden loss of confidence by foreign financial
institutions and hedge funds. Investors stampeded to sell
their stakes and/or short the Icelandic krona.
Jonsson says the Federal Reserve, the European
Central Bank and the Bank
of England refused to rescue the Icelandic banks with
emergency loans. Kaupthing, Glitnir and Landsbanki went into
receivership, many nonbank Icelandic companies were effectively
bankrupted and thousands of average citizens lost their life
humiliated Icelandic government ultimately accepted a $6 billion
bailout package from the International
to Mr. Jonsson, about 95 percent of the Icelandic banking
system, including his employer, Kaupthing, is now under state
Isle That Rattled the World." by Charles Forelle, Wall
Street Journal, October 8, 2008 shows us step by step how
the City of London and U.S. stood back and passively
allowed Iceland to slowly suffocate as it tried to manage its
way through a short term liquidity squeeze to avert disaster.
a matter of just days starting in late September, Iceland's
entire banking system failed. This account of the final days
is based on documents and interviews with a dozen or so people
close to the banks and the government.
Glitnir's headquarters in mid-September, CEO Lárus
Welding and his deputies faced a problem: The bank had issued
bonds five years earlier, to pay for its expansion, that were
now coming due. Glitnir had to make a payment of €600
million on Oct. 15.
feared it didn't have the cash...
mid-September collapse of Lehman Brothers in New York had
panicked financial firms world-wide -- bringing lending between
banks to a standstill. Given Glitnir's acute need for a loan,
that was very bad news.
hoped Bayerische Landesbank would let it be late with a €150-million
payment on a loan, freeing up some cash for the bond repayment.
No dice. On Sept. 24, the Germans asked to be paid on time.
Welding phoned Glitnir's chairman, Thorsteinn Már Baldvinsson.
"This has not been a good day," he said.
was beginning to be cut down to size. The Krona Crumbles
Haarde, the prime minister, spent Sept. 24 in New York City
at the United Nations General Assembly. The talk there was
of the financial crisis then laying waste to Wall Street.
Yet while Lehman Brothers had just gone bankrupt, Europe hadn't
yet felt the full force.
Icelandic delegation headed across town to Nasdaq headquarters,
where Mr. Haarde, smiling for the photo op, rang the closing
in Reykjavik, however, Iceland's own Glitnir bank was flirting
with disaster. With Mr. Haarde out of town, Messrs. Welding
and Baldvinsson turned for help to Mr. Oddsson, the former
2005, Mr. Oddsson had moved across town to another position
of power: chairman of the central bank's board of governors.
The Glitnir men said they could need between €500 million
and €600 million.
Oddsson didn't commit. "Let's keep in touch," he said, according
to a person familiar with the matter.
was a problem: Iceland's central bank -- which is supposed
to act as a lender of last resort when banks get into a bind
-- hadn't stockpiled very many euros to lend. By the middle
of this year, it held just €2 billion in foreign-currency
reserves. By contrast, Iceland had more than $70 billion (€49.9
billion) in debts to foreign banks.
had plenty of kronur. But nobody wanted those...
evening of Sunday, Sept. 28, Mr. Oddsson summoned the top
Glitnir officials. As Messrs. Welding and Baldvinsson arrived
at the central-bank headquarters to learn Glitnir's fate,
Mr. Welding turned to his colleague. "Do you realize," he
said, "It's over."
Oddsson said the government would be willing to take a 75%
stake in Glitnir for €600 million.
morning, when the deal was announced, bank shares collapsed.
Rating agencies knocked down the debt ratings of Glitnir,
Iceland's other banks, and Iceland itself. The krona dropped
like a stone. Britons Take a Hit
bad news about Iceland had startled many Brits with money
in Landsbanki's Icesave accounts. That weekend, they withdrew
some £200 million.
British banking authorities told Landsbanki it had until Monday
afternoon to replenish the London branch with about the same
UK Financial Services Authority declined to discuss the Icesave
sequence of events... Brief Midnight Hope
midnight on Sunday, there was a burst of hope. Mr. Haarde
told a small crowd gathered in the lobby of Iceland's Parliament
building about a new plan taking shape: Iceland's pension
funds would sell some overseas investments to raise foreign
currency, then let the government buy the foreign currency
Monday morning, that idea was dead. The pension funds weren't
eager to sell assets at fire-sale prices into a global crisis.
had run out of moves.
afternoon, a weary-looking Mr. Haarde addressed his countrymen.
He warned that the banks' grave troubles threatened the whole
island. "The Icelandic economy, in the worst case, could be
sucked with the banks into the whirlpool," he announced on
solution: Iceland would seize the banks. That evening, Parliament
passed a new law enabling this to happen.
next morning, Tuesday, Oct. 7, Landsbanki was nationalized.
Iceland's depositors would be protected from losses, the government
the U.K., banking authorities didn't like the sound of that.
British depositors had billions of pounds in Icesave -- and
no one was saying anything about protecting them.
a heated phone call, British Treasury chief Alistair Darling
asked Iceland's finance minister if British depositors were
getting left out in the cold. "Do I understand that you guarantee
the deposits of Icelandic depositors?" Mr. Darling asked,
according to a transcript published in the Icelandic press.
replied Arní Mathiesen.
not the branches outside Iceland?" Mr. Darling asked.
Mr. Mathiesen said, not beyond the €20,000 minimum prescribed
by European regulations. Later in the call, Mr. Mathiesen
said Iceland probably didn't even have enough money to meet
the €20,000 minimum.
said Mr. Darling, "that is a terrible position to be in."
Darling's office didn't respond to a request for comment.
In public remarks, he has recounted a version of the call
that is consistent with the transcript. Mr. Mathiesen couldn't
the Landsbanki debacle, executives at Kaupthing remained hopeful
about survival. Kaupthing hadn't seen massive outflows from
its own British deposit service (which, luckily, didn't have
"Ice" in its name). And Iceland's government had agreed to
give Kaupthing the €500-million loan it needed.
late Tuesday at the bank's headquarters -- an airy glass building
with a waterfall in the atrium -- they hammered out a proposal
to take over Glitnir and sell its foreign assets. Thus, two
of Iceland's three banks would pull through.
Wednesday morning, Kaupthing's chairman was working with his
bankers to try to sell some UK assets, when bad tidings flashed
across his TV screen: British authorities, worried about the
solvency of Kaupthing's U.K. subsidiary, had seized its assets
and transferred them to the Dutch bank ING.
seizure would trigger a cascade of defaults for Kaupthing,
blows it simply couldn't survive.
next morning, Iceland's government took over what was left
of Kaupthing. Glitnir, too, was eventually brought under government
Iceland, the reaction has been shame and anger. Popular targets
are British Prime Minister Gordon Brown and Mr. Darling, blamed
for precipitating Kaupthing's collapse. They are also reviled
for using an anti-terror law to seize other Icelandic assets.
Also attracting a helping of blame is Mr. Oddsson.
spokesman declined several requests for comment.
a brief telephone interview in October, Mr. Oddsson said Iceland's
foreign-currency reserves per capita were greater than most
other countries. And in a spirited October interview on Icelandic
television, he said it was the banks that should have been
made smaller, not the currency reserves larger.
a November speech to an Icelandic business gathering, Mr.
Oddsson rejected blame for the crisis, saying the central
bank had limited supervisory authority over banks, and that
he had, in fact, warned of the banks' profligacy.
Mr. Oddsson is "totally unjustified," says his friend Mr.
Gissurarson, also a member of the central bank's supervisory
board." The currency crisis was brought about by Gordon Brown,"
he says. When the U.K. seized Kaupthing's assets, that ended
Iceland's best hope keep that institution alive itself.
Brown has vigorously defended Britain's moves, saying they
were necessary to protect British savers after Iceland signaled
it would back local depositors but not foreigners....
Wednesday October 8th, the British Government invoked the
Anti-terrorism, Crime and Security Act of 2001 against the
Icelandic bank Landsbanki, the Central Bank of Iceland and
the Government of Iceland in the United Kingdom. This action
was in effect directed against the people of Iceland.
a result of this action, Landsbanki was placed on a list
of regimes subjected to financial sanction by the British
government, joining Al-Qaida, the Taliban, Belarus, Iran,
North Korea, Sudan, and 10 other organisations or countries
known for political unrest or oppressive dictatorships.
Tuesday evening 21st October, the Landsbanki bank was still
on the list of financially sanctioned regimes. The “Icelanders
are not terrorists” campaign was launched early
on Wednesday morning 22nd October. In less than three days,
more than 45,000 individuals added their names to the campaign’s
petition against the British government’s action.
This amounts to 15% of the entire population of Iceland.
at about 4pm on the same day the campaign was launched,
the HM Treasury updated its website, moving Landsbanki into
a curious new category of regimes subjected to financial
sanctions. These changes to the Treasury website are merely
cosmetic. The financial transactions of Icelandic companies
are still effectively frozen in the United Kingdom and in
most other places of the world, primarily as a result of
the actions of Prime Minister Brown and Chancellor Darling.
changes raise two very important issues:
• By making these changes, the British government
is effectively admitting that it has for two weeks wrongly
defined Icelanders as terrorists.
• If the British government now states that these
measures have nothing to do with terrorism, why was the
Anti-terrorist legislation invoked at all?
fight to clear the name of Icelanders will go on until the
British government repeals the invocation of the Anti-terrorism
Act in order to help restore the world’s trust in
the people of Iceland and its businesses.