Gambling for resurrection in Iceland

Friðrik Már Baldursson, Richard Portes, 6 January 2014

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The demise of the three large Icelandic banks, just after the fall of Lehman Brothers, was a key event in the spread of the financial crisis. A couple of weeks before its collapse in October 2008, Kaupthing bank announced that the Qatari investor Sheikh Mohammed Bin Khalifa Bin Hamad al-Thani had bought a 5.01% stake. This briefly boosted market confidence in Kaupthing (Financial Times 2008).

Topics: Financial markets
Tags: banking, banks, financial crisis, gambling for resurrection, Iceland, moral hazard

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