Former Icelandic PM to face trial for market crash

Iceland’s government was the first to collapse in the wake of the financial crisis, and now former Prime Minister Geir Haarde could be the first head of state to face criminal charges for failing to prevent it. Iceland’s parliament — the Althing — voted overwhelmingly to refer Haarde to a special court, which will decide ...

By , a former associate editor at Foreign Policy.
ANTTI AIMO-KOIVISTO/AFP/Getty Image

Iceland's government was the first to collapse in the wake of the financial crisis, and now former Prime Minister Geir Haarde could be the first head of state to face criminal charges for failing to prevent it. Iceland's parliament -- the Althing -- voted overwhelmingly to refer Haarde to a special court, which will decide if he could face charges. If found guilty, he could face up to two years in jail:   

Iceland’s government was the first to collapse in the wake of the financial crisis, and now former Prime Minister Geir Haarde could be the first head of state to face criminal charges for failing to prevent it. Iceland’s parliament — the Althing — voted overwhelmingly to refer Haarde to a special court, which will decide if he could face charges. If found guilty, he could face up to two years in jail:   

[A] report into the banking collapse accused Haarde and the central bank chief of acting with "gross negligence" in allowing the financial sector to overheat without adequate oversight.

The 2,300-page government-commissioned report detailed a litany of mistakes made in the lead-up to the bank meltdown.

Pall Hreinsson, the supreme court judge appointed to head the Special Investigation Commission that issued the report, singled out seven former officials including Haarde and central bank chief David Oddsson for particular criticism. No other officials besides Haarde were referred for prosecution to the court on Tuesday.

The trial is sure to be closely-watched by Icelanders… and other heads of state.  

Joshua Keating was an associate editor at Foreign Policy. Twitter: @joshuakeating

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