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Too-Big-to-Fail Prevention Is Tested in Post-Crisis Iceland

Iceland was brought to the brink of bankruptcy when its biggest banks failed four years ago. Now, the site of the world’s most spectacular financial collapse is becoming a pioneer in banking reform.

“We’ve been burned by this and that’s why we have to look very closely at what we need to do to prevent it happening again,” Economy Minister Steingrimur J. Sigfusson said in an interview. “Icelanders are more interested in taking greater steps than small steps when it comes to regulating banking.”