Griffiths notes that Björgólfur Guðmundsson, who now reigns as Chairman of the Board at Landsbanki, was sentenced to 12-months' imprisonment, suspended for two years, when a shipping company under his management went bankrupt in the late eighties. He, his son, Björgólfur Thor Björgólfsson, Iceland's first dollar billionaire, and their St. Petersburg business partner, Magnús Thorsteinsson, now wield direct or indirect control over many of the largest companies in Iceland. Griffiths refers to the holdings of the two Björgólfs as a "powerful empire that takes in pharmaceuticals, telecommunications and financial services."  

(For coverage of the ongoing takeover attempt of Íslandsbanki by parties related to Landsbanki, see Iceland Review, Daily News, June 10, "Deadlock at Íslandsbanki?")

Griffiths observes that around the same time as the three gained control of Landsbanki, Icelandic companies have increasingly started striking out abroad. In the UK Baugur has been most visible, acquiring several British retailers. Griffiths names several, including Big Food Group, Oasis, Karen Millen, Goldsmith's and Hamley's.

Griffiths acknowledges that the persistent rumors of Russian money driving Icelandic expansion are "persistent but unsubstantiated." He goes on to write about the country's economic development, calling it a "miracle that has allowed Icelandic businessmen to march into the British high street and the City of London, capturing assets along the way - even though Iceland's output is about the same size as Mark & Spencer's market capitalization. Iceland's corporate cheerleaders have been swift to attribute their success to economic performance and dismiss the mafia money speculation as unfounded."

Stöð 2 did not draw any conclusions but ended its report yesterday by observing that Griffiths's Guardian story must reflect what British financial circles are talking about these days.