The Bergen Scandal, also known as the "Bergen Affair," was a major political scandal that rocked Norway in the early 20th century. The incident, which took place in 1917, involved a group of high-ranking government officials and business leaders who were accused of corruption, embezzlement, and abuse of power.
The most damning practice involved moving due dates on non-performing loans. Instead of writing off bad debt, the bank would issue new loans to the struggling borrowers just so they could pay the interest on the old loans. This created the illusion that the loans were still performing (being paid back), artificially infling the bank's profits and solvency. bergen scandal
To understand the scandal, one must understand the economic environment of 1980s Norway. The Bergen Scandal, also known as the "Bergen
The Bergen Bank Scandal changed Norway forever: Instead of writing off bad debt, the bank
As the economy turned sour in 1987, Bergen Bank’s leadership faced a dilemma: report massive losses and face a stock price collapse, or hide the losses. They chose the latter.
