Investigating possible legal action for damages

At its meeting this morning, the cabinet approved a proposal from the Minister of Finance to set up a working group to investigate the possibility of the state bringing suit against those individuals and legal entities which can be shown to have caused financial damage to the Icelandic state and general public through their actions in the period leading up to and during the banks’ collapse.

The working group will be comprised of representatives of the Prime Minister’s Office, the Ministry of Finance, the Ministry of Justice and the Ministry of Business Affairs, plus an additional 2-3 legal counsel engaged to work for the committee. Their tasks will involve, for instance, examining in which instances such suit could be brought with a likelihood of success, defining individual cases and selecting those which may conceivably be pursued expeditiously and serve as precedents. Following this preparatory work, a decision will be taken as to whether and, if so, how legal proceedings will be initiated and whether this will be the responsibility of the Attorney General or other party.