Iceland has appointed two women to help rebuild its financial system after the banking empire built by its young, male-dominated elite collapsed. Elín Sigfúsdóttir and Birna Einarsdóttir are set to become chief executives of New Landsbanki and New Glitnir respectively, the nationalised banks created in the wake of the crisis. Their appointments are an effort to signal a new culture within the banking system, said a government minister. Landsbanki, Glitnir and Kaupthing – infamous for their aggressive international expansion – collapsed last week under massive debts, bringing Iceland’s economy to the brink of bankruptcy and triggering recriminations, with the UK a popular target. But many have also criticised a culture driven by young, male bankers. The banks’ new chief executives were promoted from within the ranks of the failed banks: Sigfúsdóttir has headed corporate banking at Landsbanki since 2003 and Einarsdóttir became head of domestic commercial banking at Glitnir last summer. The nationalised banks will focus solely on domestic operations. Their first task is to restart trading of the Icelandic krona, which all but ceased last week, leaving most Icelandic groups unable to pay suppliers. A New Kaupthing bank is also planned.
