Former CEO of Icelandic bank Landsbanki Sigurjón Þ. Árnason, the bank’s former company division managing director Elín Sigfúsdóttir, former director of proprietary trading Ívar Guðjónsson and three other former employees of Landsbanki are facing charges because of alleged market abuse worth tens of billions of ISK.Landsbanki's headquarters. Photo copyright Icelandic Photo Agency.
This is the first extensive case for which the Office of the Special Prosecutor in Iceland issues charges concerning Landsbanki. The charges involve three different cases, including the company Ímon that bought shares worth ISK 9 billion (USD 72 million, EUR 55 million) in Landsbanki shortly before it collapsed in October 2008, ruv.is reports.
According to the report of the Icelandic parliament Alþingi’s special investigative commission, all of the shares were bought by Landsbanki’s proprietary trading division.
The report states that Ímon was granted a loan from Landsbanki worth ISK 5 billion at the end of September 2008 to buy shares in the bank itself.
The Icelandic Financial Supervision Authority referred its case against Landsbanki’s former employees to the Office of the Special Prosecutor in 2010, which resulted in extensive investigation, leading to Sigurjón and Ívar being taken into custody in January 2011.
The charges were issued last week and are to be presented to the accused today. They will likely be made public in the coming days.
19.01.2011 | Custody Confirmed over Former Landsbanki CEO