Quomodo Ingens Casus: The Financial Supervisory Authority, Iceland

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Banks and other financial institutions do not simply live in a bubble. Across the world, a variety of government agencies have been conjured to oversee and regulate the financial markets and entities which provide funds for everything from housing loans designed to change a family's life, to loans for massive regional projects designed to change an entire country, and everything in between. Without such entities, consumers and even entire governments could be taken advantage of, while financial markets could potentially be laid barren by unethical or unsustainable practices. Even with regulatory agencies, markets and financial systems are not free from damage, oscillations, or even collapse. As was seen across the world in the financial crisis of 2007, regulatory agencies were not sufficient and banks collapsed while many individuals lost massive personal savings. Here in the United States, we experienced a housing market crash, unemployment spike, and decline in currency value with respect to the Euro, but how was the rest of the world impacted by this financial blunder, and for the topic of this paper; how was Iceland, through its regulatory entities, able to handle the collapse of its three largest banks and recover to tell the tale? The Men Behind The Curtain Fjármálaeftirlitið, or The Financial Supervisory Authority, Iceland (FME) for non-Icelandic speakers, was founded in 1999, and brought Iceland through its most challenging times during the financial crisis which struck the world during the 2007-2012 era ("Fjármálaeftirlitið", 2014). Banking institutions were collapsing across the globe and government agencies, who at first were trying to mediate the problem as it unfolded were left picking up the pieces of a crumbling ec... ... middle of paper ... ... Iceland. (2014, June 1). Retrieved June 1, 2014, from http://en.fme.is/ Financial Supervisory Authority in Iceland has finished investigating the fallen banks. (2013, February 14). Retrieved June 1, 2014, from http://www.newsoficeland.com/home/business-economics/public-sector/item/758- financial-supervisory-authority-in-iceland-has-finished-investigating-the-fallen- banks Gumbel, P. (2008, December 4). Iceland: The country that became a hedge fund. CNN Money. Jännäri, K. (2009, March 30). Report on Banking Regulation and Supervision in Iceland: past, present, and future. Retrieved June 1, 2014, from http://www.forsaetisraduneyti.is/media/island/frettir/25.pdf Wade, R., & Sigurgeirsdóttir, S. (2012, March 27). How to discredit a financial regulator: the strange case of Iceland. Retrieved June 1, 2014, from http://triplecrisis.com/the-strange-case-of-iceland/

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