Secret Cash Endangers Iceland’s PM

Iceland Prime Minister Sigmundur Gunnlaugsson will face a vote of no-confidence as soon as this week as political opponents reacted swiftly Monday to leaked documents that allegedly show that he and his wife own an undisclosed tax haven-based company with large claims on some of the country’s collapsed banks. Hundreds of demonstrators gathered outside parliament in Reykjavik, demanding that Gunnlaugsson resign and for a new election to be held following the weekend release of the so-called Panama Papers: documents purported to show offshore law firm Mossack Fonseca’s efforts to help global political and financial clients secretly dodge taxes. Opponents and Icelandic media have accused center-right Gunnlaugsson of a conflict of interest and a lack of transparency regarding the assets, since Gunnlaugsson is involved in making deals with claimants of some of those bankrupt banks. An Icelandic news agency reports that a no-confidence motion brought by the opposition is unlikely to pass based on the parliament’s makeup, and Gunnlaugsson told local media Monday that he didn’t plan to resign. In 2008, Iceland’s economy collapsed after a massive financial meltdown triggered by bad loans issued by its banks.