Questioning of Bankers Continued in Iceland

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Questioning of Bankers Continued in Iceland

Questioning continued over the two former Kaupthing Bank employees yesterday, who were arrested in Iceland on Wednesday in connection with the British Serious Fraud Office’s and Iceland’s Special Prosecutor’s investigation of the bank’s affairs but later released.

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Former chairman of Kaupthing Sigurdur Einarsson was among those arrested. Copyright: Icelandic Photo Agency.

The employees in question are Bjarki H. Diego, who used to be the managing director of the bank’s loan division, and Gudmundur Thór Gudmundsson, who worked as the division’s business manager, Fréttabladid reports.

Seven people were arrested in relation to the investigation in the UK on Wednesday but released after questioning on the condition that they would attend further questioning on their own accord.

In addition to former Kaupthing chairman Sigurdur Einarsson and former director of Kaupthing Singer & Friedlander Ármann Thorvaldsson, former managing director of the bank’s cash management Gudni Níels Adalsteinsson was arrested.

What made the biggest headlines in the UK is that British businessmen and brothers Robert and Vincent Tchenguiz and two of their closest associates were among those arrested.

Alleged illegal loans granted to Robert Tchenguiz a few months before the banking collapse in Iceland in October 2008 worth more than ISK 100 billion (USD 850 million, EUR 620 million) is under investigation.

Click here to read more about this story and here to read more about the Tchenguiz brothers.