The credit crisis hits West Ham

Iceland moved closer to national bankruptcy as its highly leveraged banks reel from defaulting loans and failed investments. For years, Iceland’s banks gave away loans like drunken sailors with very few questions asked. Today, the government sent out an SOS to Russia for a loan to bailout its economy and the central bank pegged the currency to others. It also set about an aggressive nationalization of its banks.
Bjorgolfur Gudmundsson, the CEO of Landsbanki, Iceland’s second largest bank stepped down after the government took it over. Gudmundsson is West Ham’s owner and the move threw the club’s future into disarray. The immediate result is a fire sale of its players to bring wages down. The club is also attracting a number of investors who believe that Gudmundsson will sell the club to recoup his losses. On the transfer block, players like Hayden Mullins, Nigel Quashie, Calum Davenport, and Lee Bowyer who have failed to make an impact.
West Ham might also have to pay more than £30 million to Sheffield United in the Carlos Tevez affair should the ruling from the FA’s independent tribunal stand if the CAS decides it does not have jurisdiction. Money it can ill afford to lose at this moment.

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