Former PM Geir Haarde was on trial for his involvement. The powerful pretty much went in lockstep, with the smoking hot icelandic economy after a growing banking sector, it looked like every icelander benefitted, being able to take loans and buying multiple cars. With the "success", the people in charge let themselves be instruments of a run away modern high-risk banking sector, not their doing their job as regulators.

http://www.voxeu.org/article/government-failures-iceland-ent...