That the UK used anti-terrorist laws to try and stop Iceland is probably one of the worst financial elbowing I have ever seen in my life time.
Excuse me its was an anti-mafia law, and it was correctly applied. Iceland is a mafia state, the Icelandic government was actively involved with deceiving and cheating the Dutch government.
Still think it was wrong. Any depositor guarantees supported by the icelanding state should ofcourse be honoured but that is a totally different matter and Iceland have wised up about that.
To solve this situation we need to make loans based on foreign currency illegal, irradicate the fractional reserve banking system and make companies that make bad investments “banks not excluded” go bankrupt.
If in a monetary union it should share all powers of a sovereign country.