I don't think it was as simple as that. Because the banks were not bailed out, many people lost their savings. The majority of the savers were not living in Iceland. So in effect, the money that the banks owed (to those savers) was already invested in Icelandic properties and Icelandic companies but those investments were paid for by other non-Icelandic Europeans.
But still, you should brutally abuse the bankers, confiscate everything they have, make their families destitute. Take their homes and throw their wives and children out and drain their bank accounts (including the accounts of immediate family, children too) to ZERO$$$ and jail them. Just totally destroy them personally.