They are a tiny country who nationalized their banks, stiffed creditors, implemented unnecessary austerity measures and devalued their currency. I'm not sure they're a model for US economic policy.

Creditors were left to deal with the mess that they were complicit in creating while ordinary people who just wanted a house to live in were freed from crushing debt. Some limited austerity measures were put in place that didn't cut into core social spending. The people were taken care of while financiers were told to take a hike, and just as all the experts didn't predict the crash, none of them predicted Iceland's recovery. Maybe the big lesson here is that economists don't know what the fuck they're talking about, and there are other factors in play than neoclassical theory. That is why this hasn't received coverage, because it would lead to self-reflection that would make those in power uncomfortable.

Of larger nation than Iceland Norway and Sweden handled the bank crisis around 1990 by nationalizing the banks and adding to their capital reserve. The shareholders lost their money, but the banks were able to recover in not too many years.

The worst thing that can be done is a bailout. In that case the people that took unnecessary risks for their own short-term gain are rewarded, and everyone else have to pay.