[proxy_user]

The banks in Iceland relied primarily on depositors in Europe. The Icelandic economy was not hurt when those depositors lost their deposits.

It would be quite different if, for example, General Electric’s cash account at Bank of America were wiped out. They would not be able to pay employees or vendors, and would have to go bankrupt immediately.

[org.whodat]

Yes, and investors would but their plants and equipment and life would go on. The only change, a bunch of half ass managers would be in the cab driving business.