Icelandic Prime Minister Sigmundur Gunnlaugsson Resigns in the Wake of “Panama Papers” Scandal

Brynjar Gunnasrson/AP

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Iceland’s Prime Minister Sigmundur Gunnlaugsson announced his resignation on Tuesday amid mounting public anger over evidence that he and his wife owned a secretive offshore company called Wintris that managed millions of dollars of investments in three Icelandic banks that collapsed during the 2008 financial crisis.

Calls to step down were sparked by this weekend’s so-called “Panama Papers” leak, a massive trove of documents from the Panamanian law firm Mossack Fonesca that exposed a number of international leaders and their closest confidantes as participating in complex offshore banking arrangements. High-profile leaders linked to the leak include Russian President Vladimir Putin and Chinese President Xi Jinping.

But Gunnlaugsson is the first leader ousted in the international fallout. The public outcry in Iceland is particularly intense due to lasting memories of the 2008 financial crisis, which paralyzed the country’s economy, and sent shock waves around the world. And as our own Kevin Drum noted, Iceland was “ground zero for the European banking crisis.”

Gunnlaugsson had initially insisted on staying in office. When questioned about his ties to Wintris on Monday, the visibly shaken prime minister was unable to properly respond and ended the interview. “You are asking me nonsense,” he is heard telling the reporters conducting the interview.

In the days following the leak, mass demonstrations calling for Gunnlaugsson to step down were held outside Parliament. Some people were seen hurling yogurt at the building in protest:

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SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

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