In December 2008, angry protesters branded both Geir Haarde, Iceland’s then prime minister, and David Oddsson, then head of the country’s central bank, as «Iceland’s bin Laden» - blaming them in equal parts for the country’s complete financial meltdown (see my photos below).
Now, the former could face criminal charges for the global financial meltdown, while the latter is one of two joint editors of Iceland’s newspaper of record, Morgunbladid.
How surreal is that?
According to The Daily Mail earlier this week:
Pall Hreinsson, the supreme court judge appointed to head the Special Investigation Commission that issued a government-commissioned report detailing the litany of mistakes made in the lead-up to the bank meltdown, singled out seven former officials including Mr Haarde and central bank chief David Oddsson for particular criticism.
No other officials besides Mr Haarde were referred for prosecution to the court.
Now, I was just going to dip into this story briefly.
I was fascinated by how things had turned out when I read the news about Haarde this week since I covered the Icelandic freesheet market extensively from 2006 – 2009/10 (media cross ownership being a particularly colourful story in the country, closely linked to the financial meltdown), and reported extensively from the dire situation in Icelandic media following the financial meltdown.
But the twists and turns of this story are just too incredible.
I noticed that Olafur Stephensen, who was editor of Morgunbladid, considered to be the newspaper closest the conservative Independence party which Haarde and Oddsson both represent, had now become editor of Frettabladid. That is, Frettabladid the legendary freesheet so closely linked to Baugur. Just how close those links once were becomes obvious for all when reading this story on why Frettabladid’s former editor, Jon Kaldal, was fired.
For the record, I should say that I conducted long interviews with both Kaldal, then editor of Frettabladid, and Stephensen, then editor of Morgunbladid, when I was in Reykjavik working on my story on the crisis in Icelandic media in December 2008.
Both cast an interesting light on the many events leading up to the crisis.
At the time, Stephensen had not received his monthly salary and could only pray someone would rescue Morgunbladid so his salary would be paid before Christmas.
But it is perhaps no wonder that the country’s newspaper economy, with its close links to major companies and banks, was struggling at the time seeing that the entire country was on the verge of financial collapse.
(Media cross interests and cross ownership on Iceland was so extensive at the time that it still makes my head spin, but an Icelandic tabloid editor I spoke to explained it in clear terms thus: ” You know, the sugar daddy behind DV and Fréttablaðið was Baugur, but the sugar daddy behind Morgunbladid was Björgólfur Guðmundsson? … Now everyone is on his or her own because our sugar daddies are dead” )
According to Gylfi Magnússon, a University of Iceland economist who gave witness to the Landsdómur trial of former Icelandic Prime Minister Geir H. Haarde on Friday, the Central Bank of Iceland effectively went bankrupt in October 2008 when its board decided to loan Kaupþing Bank EUR 500 million in an effort to save the latter.
He explained that although the Central Bank said at the time that the loan represented only a fifth of its foreign capital reserves, in reality most of that money was not readily accessible.
Gylfi was drafted in to the minority government from February 2009, after Geir Haarde resigned, as an un-elected expert commerce and trade minister (Icenews has more on this latter story)
Okay, I’ll stop there. I could easily see myself moving temporarily to Reykjavik to write a book on all this, but I expect those books already have or are being written.