February 28, 2009

Iceland moves to oust bank chief

Iceland's Parliament says it's voted to oust David Oddsson as chief of the central bank for his role in the country's economic collapse.

The legislation, expected to be signed by President Olafur Grimsson, reorganizes the central bank to remove Oddsson, who has resisted calls for his resignation, The Wall Street Journal reported Saturday.

Thursday's vote supported a widely held view that Oddsson hastened Iceland's banking collapse with ill-conceived rescue plans, the Journal reported.

Oddsson, who was Iceland's prime minister from 1991 to 2004 and central bank chief since 2005, has been criticized for maintaining foreign-exchange reserves too small for Iceland's banking system.

Prime Minister Johanna Sigurdardottir said she will search internationally for Oddsson's replacement and put in place an interim central banker while the government considers candidates.

Oddsson was not available for comment, the Journal reported.