During the boom years, Iceland became an international banking haven that made a fortune off of virtual savings accounts, which were popular in the UK and Holland. But when Icelandic bank Landsbanki tanked during the meltdown, Icelandic clients were made whole while UK and Dutch ones were not. The UK and Holland made their own citizens whole, but then went after Iceland to pay them back. Iceland voted on it and refused in what proved to be a winning gamble on its reputation. Even some who voted to repay the UK and Holland are saying now that that would have been a mistake. But why?
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