Many voters were against taxpayers footing bill for bankers' misdeeds

REYKJAVIK, Iceland -Icelanders rejected for a second time a plan to repay $5 billion to the United Kingdom and the Netherlands from a bank crash, results showed on Sunday, and Iceland's prime minister warned of economic and political chaos.

Policymakers have said a "no" in the Saturday referendum meant the dispute will end up in a European court. Economists have said the uncertainty is hurting efforts to drag Iceland out of recession, end currency controls and boost investment.