Icelandic banks similar to Enron

Finance minister Gylfi Magnusson said, when asked weather Icelandic bank managers acted in similar fashion as the Enron direcotors, “Of course did those men fool themselves up to a point, and others at the same time aswell.”. Magnusson said that some of the actions of the bankers would be dealt with in a criminal investigation. That would be the job of the appropriate instution, such as the special prosecutor or the Parliament investigative committee.

The banks own money was amplified with calculating wizardry and book keeping tricks. The banks made up their own money, by turning loans they got, into own money, and also by loaning to buy stocks in their own bank. They also bought assets at a very unreal price, and turned the differnce in as business value or business promise. That amount could go up to 40% of an asset, some have said. 40% of an “asset” was actually just a promise booked as money in their accounts.

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