Iceland’s Parliament Rejects Bank Aid as Losses Loom
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Iceland’s parliament may block any government attempt to recapitalize the island’s banks after a court ruling threatened to leave some lenders insolvent, opposition party leaders and coalition members said.
Thirty-five lawmakers in the 63-seat Reykjavik-based assembly plan to vote against any government proposal to rescue lenders, according to all opposition party heads and six members of the coalition contacted by Bloomberg. The government, which can’t bail out the banks for a second time in as many years without parliamentary backing, may need to support the industry after a June 16 court ruling made them liable for currency losses on as much as $28 billion in loans.