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Jailed Former Bank Exec “Bankrupt”

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Jailed Former Bank Exec “Bankrupt”

Former chair of Kaupþing Sigurður Einarsson.

Photo: Geir Ólafsson.

Sigurður Einarsson, the former chairman of Kaupþing bank, has formally requested the Reykjavík District Court declare him personally bankrupt.

Sigurður confirmed the news to DV, but would not say precisely why he is bankrupt, and why it should happen now.

The newspaper speculates, however, that a possible reason is the Reykjavík District Court’s decision in 2012 to find Sigurður guilty—forcing him to pay back around ISK 500 million (EUR 3.5/USD 3.9 million), plus interest, due to personal loans he took with Kaupþing in the lead up to the bank’s demise. He used the loans from Kaupþing to buy shares in the bank itself.

Sigurður is currently serving a prison sentence at Kvíabryggja.

DV sources claim that liquidators at the failed bank are investigating on behalf of the court before it makes a decision on Sigurður’s plea.

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