Icelandic Economic Collapse exceeds Enron Skip to content

Icelandic Economic Collapse exceeds Enron

By Iceland Review

Last fall’s collapse of the Icelandic banking system is more substantial than both Enron and WorldCom, the US’s largest bankruptcy cases, according to Helge Skogseth Berg, a Norwegian financial expert. He is now assisting corruption hunter Eva Joly, who was hired by the Icelandic government to help with the investigation on the banking collapse. Mbl.is reports this.

Banking in Iceland. Copyright: Icelandic Photo Agency.

„The case is so massive that is impossible to tell for how long I will be assisting in the investigation,” Skogseth Berg says.

The default of the Icelandic banks is larger than Enron, which in 2001 was the largest bankruptcy case in the history of the United States.

„It is also larger than the WorldCom case, which in 2002 became the largest bankruptcy in USA history. The investigation is therefore enormous and will require my presence in Iceland as an advisor.”

Skogseth Berg is presently in Iceland with Joly, who recently criticized the low budget and manpower the investigation team has been provided with. “I hear that soon, more prosecutors will be hired,” he says. “In such a large investigation, it is best to operate a few independent teams because then, the entire investigation won’t risk being held back due to any single case. The investigation would go further and the staff would also be put to better use.”

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