In October 2008, the world experienced its biggest financial crisis in living memory. Financial institutions in the US and in Europe were allowed to fail, forced to merge, or rescued with capital injections by their national governments.
The failure of the three Iceland banks was catastrophic both in size, $180 billion US (the third largest bankruptcy in history after Lehman Brothers and Washington Mutual), and in scope, 97% of the entire financial system failed in two weeks.
The failure was due to many factors: rapid growth of the banking system in Iceland; failure of regulators and government to adequately monitor the banks; malfeasance on the part of a few bankers and entrepreneurs; failure of its stakeholders to monitor what was happening; and the interdependence of the global financial system.
Murray Bryant, Michael King and Gerard Seijts have written a case on one of the ill-fated Icelandic banks: Landsbanki Islands hf. The case is forward looking and examines the challenges faced by the new CEO of the reconstituted bank in 2010, Steinthór Pálsson, as he works to rebuild trust within the bank and between the bank and its stakeholders – customers, depositors, the Icelandic population, the creditors of the old bank, the regulators and the government of Iceland.
Steinthór Pálsson will speak to Ivey EMBA alumni and Ivey HBA students about the case "Landsbankinn hf: Leadership challenges going forward". Please join us on Friday March 28 in the BMO auditorium from 9:40 – 11:00 am.
Steinthór Pálsson has extensive experience of managing financial institutions and production companies both in Iceland and abroad, and a great deal of experience of change management and strategy development.
Steinthór Pálsson's bio.
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