That’s what I thought was funny. How did Iceland’s financial laws allow a local bank to take deposits so big the entire country can’t insure it. Not to mention the criminal element.
Why not? Shouldn't Icelandic law protect Icelandic residents?
So it’s good to protect Icelandic residents. But the law is inefficient if it allows too much capital that it can’t be managed and insured.
> it’s illegal to murder someone regardless of the perpetrator or victim’s nationality
You're mixing up two things: whether the law as it exists was violated (in which case Icesave should of course be punished) and whether the law SHOULD protect foreign depositors. I'm discussing the latter.
> bank insurance applies regardless of nationality
I'm not well-versed in cross-border banking to say the least, but isn't that an opinion? One could just as well argue that Icelandic taxpayers shouldn't have to subsidise the British (as an example) public, by providing free insurance. If Britishers want insurance, it's up to their government to incur the costs, since it's the Britishers who'll be benefiting.