Title: A tale of wilful malfeasance 2003-2008 - followed by recovery and resurrection in Iceland

Authors: Murray J. Bryant; Throstur Olaf Sigurjonsson

Addresses: Ivey School of Business, Western University, London, Ontario, Canada ' University of Iceland, Reykjavik, Iceland; Department of Accounting, Centre of Corporate Governance, Copenhagen Business School, Solbjerg Plads, Denmark

Abstract: The collapse of the Icelandic financial system in October 2008, was unprecedented in both scale and scope, 97% of the financial system collapsed, inflation was rampant, the currency disintegrated, and unemployment was both a social and political issue. This paper endeavours to show, using documentary evidence from 2003-2008, whether the system of monitoring of the banks and economy failed - applying evidence of institutional ascription. The contribution of the paper is to document that both institutional ascriptions, along with corruption and greed, were endemic from 2003-2008. The resurrection and recovery followed a transparent process, based upon objectives of wealth equality along with fairness - inclusive capitalism, to address what went wrong, address the overhang of debt and the rebuild of trust in all institutions, including government itself.

Keywords: institutional ascription; inclusive capitalism; corruption; malfeasance; financial system collapse.

DOI: 10.1504/IJBGE.2025.142980

International Journal of Business Governance and Ethics, 2025 Vol.19 No.1, pp.30 - 44

Received: 10 Feb 2022
Accepted: 26 Feb 2023
Published online: 02 Dec 2024 *

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