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Even officials at the International Monetary Fund who at the behest of European leaders held up emergency funding for Iceland for a year because of the dispute over the banks now acknowledge that he was right.

The IMF and European Union appear to have relied somewhat on the Icelandic playbook in their handling of the banking crisis in Cyprus, where major banks also were allowed to fail and big foreign depositors were forced to take a haircut while small domestic depositors and taxpayers were protected from major losses.