During the 2008–2012 Icelandic financial crisis Jónas Fr Jónsson was the CEO of the FME, both he and the FME were heavily criticized for missing the warning signs and inaction leading up to and during the crisis.

On 9 October, Kaupthing was placed into receivership by the FME, following the resignation of the entire board of directors.

[5] The bank said that it was in technical default on its loan agreements after its UK subsidiary had been placed into administration.

On 25 January 2009, Björgvin G. Sigurðsson, Iceland's Commerce Minister, resigned citing the pressures of the nation's economic collapse, as the country's political leaders failed to agree on how to lead country out of its financial crisis.

One of his last acts as minister was to dismiss Jónas Fr Jónsson the director of the Financial Supervisory Authority (FSA).