Bankrupt Christmas spirit

This is a scenario faced by Icelandic employees these days.

A select group of people were given the banks by the Icelandic government.

They were under no restrictions of owning businesses in other genres so they invested heavily, with loans from their own banks in all sorts of industries.

When the going got tough they dumped debts into some companies, assets into other companies.

The banks failed and the government took them over, and was basically stuck with the indebted companies while the selected businessmen kept the ones with the assets.

Those couldn’t be taken from them because the Independent Party does not believe in taking “rightful assets” from their owners. At least that’s how Birgir Armansson, MP explained the situation.

The indebted companies are all of a sudden beholden of the nationalized banks. Now, the businessmen who owned the banks are conveniently tied to the people who still work in the bank, they used to be their employers remember, employers who showered their staff in champagne, not something government banks are readily prepared to do.

So now the indebted companies are being sold off in pieces, assets are being sold on the cheap, without auctions or advertising that they are for sale. Only a select few are privy to the information and therefore are running off with bargains, while leaving the debts, yes wait for it, with the taxpayers.

What about the employees? They are basically left to rot. Their current companies are left bankrupt, all operations are moved to a different newly founded ltd. company and those who want to keep their job are going to have to negotiate a new, and of course lower, contract.

The rest who are not prepared to swallow the pill have to go on unemployment benefits right away, and file claims with the bankrupt company in hope of getting their compensation package, 3-6 months depending on rank.

If that story doesn’t get you into the Christmas spirit then I don’t know what would.

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3 Responses to “Bankrupt Christmas spirit”


  1. 1 Roy December 4, 2008 at 11:55 am

    A year or so back Iceland was rated as one of the least corrupt countries in the world. I am getting closer to finding out the organization that gave them the rating and will let you know shortly. My trace so far has led me to Palermo…

  2. 2 drafnsson December 4, 2008 at 12:49 pm

    🙂 We are so corrupt we think we aren’t

  3. 3 Einar Jón December 5, 2008 at 4:29 am

    I’ve said it before and I’ll say it again.
    We are so corrupt that other countries can’t think of ways to measure it.


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