Governmental Reactions to the Financial Meltdown of 2008

• In Event: White-Collar Crime at 75: International Perspectives and Financial Markets

Abstract

In the aftermath of the financial meltdown of 2008, the governments of Iceland and the United States were confronted with the eminent failure of financial institutions, angry protest by citizens and a desire to prosecute individuals who were believed to be responsible for the financial crisis. Within a short period of time, the approach the two governments used diverged. The size of the countries and their economies alone do not explain the difference in how they pursued financial crime. This paper explores how regulators and prosecutors in each country chose to pursue alleged misconduct and crimes associated with the 2008 financial meltdown and hypothesizes why they chose their particular course of action.

Author

• Susan Will, John Jay College of Criminal Justice