Abstract
In the late afternoon of Monday 6 October 2008, Prime Minister Geir Haarde addressed the nation on TV: the state would not be able to bail out the banks. Over the following three days, the entire financial system collapsed — Landsbanki on Tuesday, Glitnir on Wednesday and finally Kaupthing on Thursday. The Central Bank’s decision to acquire a controlling stake in Glitnir, as described in the previous chapter, finally tipped the scales in this extremely volatile situation and caused a domino effect, which wiped out the country’s banking system.
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© 2014 Eirikur Bergmann
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Bergmann, E. (2014). The Crash — Collapse of the Cross-border Banks. In: Iceland and the International Financial Crisis. International Political Economy Series. Palgrave Macmillan, London. https://doi.org/10.1057/9781137332004_7
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DOI: https://doi.org/10.1057/9781137332004_7
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-46152-3
Online ISBN: 978-1-137-33200-4
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