IT: Iceland/Ireland: Spot the Difference: Banking Report

[Pyramid5]

irishtimes.com/newspaper/opinion/2010/0413/1224268226037.html

The Icelandic banking inquiry highlighted the failure of “managerial judgment” by the banks, regulatory authorities and government. It noted that “clear warnings” by international ratings agencies, such as Fitch, were ignored. The 2006 Bank Systemic Risk Report by Fitch, for instance, highlighted Iceland’s “high vulnerability to potential system stress due to rapid lending growth”. The other country cited by Fitch in the report, in the same category as Iceland, was Ireland./quote]

Prime minister Johanna Sigurdardottir said yesterday “mistakes were certainly made. The private banks failed, the supervisory system failed, the politics failed, the administration failed, the media failed, and the ideology of an unregulated free market utterly failed”.

The Icelandic banking inquiry also found that the sources of independent economic analysis, such as the media and academia, were negligent in their obligations to display objectivity because of close links with banking interests. Regulatory agencies were too close to financial institutions

Political donations by vested interests reduced the capacity of political criticism. The emergency legislation drawn up in early October 2008 had no expert input. The government was guilty of economic mismanagement because specific political decisions inflated the boom and overheated the market. Ministers failed to protect the public interest.

Is any of this starting to sound familiar?

The causal nature of political appointments was regarded as a contributing factor to the weak quality of governance in Iceland

Not that this is any suprise to pinsters. But wow, Ireland is a clone of Iceland except that Iceland have realised the error of their ways. Ireland continues the madness

[superman]

They do have a different party in government now though IIRC.
Makes a big difference in being able to say “the guys who were in charge leading up to the mess were the problem”.

[Pyramid5]

@superman

They do have a different party in government now though IIRC.
Makes a big difference in being able to say “the guys who were in charge leading up to the mess were the problem”.

Does not change the fact that all of the above occurred in Ireland

[jihle]

Nobody listened!

tribune.ie/article/2008/apr/ … mic%20risk

Of course, Fitch heavily caveated their judgment. See last par.

[Egg_Beater]

More from the Icelandic Press

Banks’ Owners Owed the Most
The majority owners of the three largest Icelandic banks, Kaupthing, Landsbanki and Glitnir, and of the investment bank Straumur-Burdarás, were also their largest debtors, as the Special Investigative Commission’s crisis report, which was made public yesterday, has revealed.

icelandreview.com/icelandreview/daily_news/?cat_id=75139&ew_0_a_id=360631

How similar are our banks?