Iceland Rejects Bank Bailout

Here’s one country that refuses to bail out its banks: The citizens of Iceland voted in a referendum this weekend to refuse to use taxpayer funds to settle the accounts of one of the nation’s banks that went under during the financial crisis. Landsbanki Islands offered high-yield online accounts to 350,000 British and Dutch depositors, so when the bank was shuttered, those countries' governments repaid their citizens—and now they’re asking Iceland’s people to foot the bill. But with Iceland unwilling to submit to a bailout, the U.K. and the Netherlands have threatened to file suit for the money. “Nowhere does it say that Iceland is legally obliged to pay for this ridiculous Landsbanki adventure,” said a shop assistant in Reyjkavik who voted against the bailout. “If a court finds that we are legally responsible, so be it. Until then: No thanks.”