Iceland jails former Kaupthing bank bosses

Posted 13/12/2013 - 06:31 by anrigaut

2013-12-12 (All day)

Four former bosses from the Icelandic bank Kaupthing have been sentenced to between three and five years in prison.

They are the former chief executive, the chairman of the board, one of the majority owners and the chief executive of the Luxembourg branch.

They were accused of hiding the fact that a Qatari investor bought a stake in the firm with money lent - illegally - by the bank itself. ...

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Allan Bell could stand for chief minister

Posted 01/10/2011 - 09:38 by anrigaut

2011-09-29 23

The Isle of Man's longest serving politician could stand as the island's next chief minister.

Allan Bell, who has been in office for 27 years, said he wanted to look at Tynwald's new political line-up before considering his next move.

Mr Bell came out top in a recent island-wide survey on who should take on the role.

But he said election night was too early for discussions on the role of chief minister.

"Clearly there will be some very big changes," he said. "Hopefully those changes will help to heal the island. We are facing challenging times but those challenges are not insurmountable."

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Corruption at Kaupthing

Posted 09/03/2011 - 12:00 by Brabander

2011-03-09 (All day)

At long last! The tip of the "Ice"berg?

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Iceland arrests ex-chief of collapsed bank Kaupthing

Posted 06/05/2010 - 21:03 by KrapthingSwindl...

2010-05-05 22

The former chief executive of the collapsed Icelandic bank Kaupthing has been arrested, authorities say.

Hreidar Mar Sigurdsson is suspected of embezzlement, trading irregularities, and other breaches of banking laws, the special prosecutor's office has said.

It is the first high-profile arrest since the country's financial collapse in 2008.

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N Ireland Executive helps depositors with Presbyterian Mutual Society

Posted 20/04/2010 - 15:52 by Brabander

2010-04-20 (All day)

This shows what political pressure can do! Undoubtedly it has helped that members of the Presbyterian church were encouraged by some of their ministers to deposit money with the PMS and that there is a close political connection between this church and some of N Ireland's major political parties!
The PMS was a much smaller "bank" than KSFIOM and was unregulated. Their finances were in much worse condition than those of KSFIOM as they had extensively lent to property developers in N Ireland. The revised value of many of these loans is now <50% of the original book value. The NI Executive are giving small depositors £50m outright!
It is extremely likely that only a fraction of the £175m they are providing as a loan to the larger depositors will ever be fully paid back by the PMS administrator.
This contrasts with the despicable treatment we have received from the IOM government.
I am sure the N Ireland tax payers are unaware that they will end up footing most of the bill!

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Icelandic authorities 'negligent' over banking collapse according to report

Posted 12/04/2010 - 18:35 by KrapthingSwindl...

2010-04-11 22

Leading Icelandic figures, including ex-Prime Minister Geir Haarde, are guilty of "negligence", a report into the Icelandic banking crisis has said. More should have been done to limit the damage to Iceland of the collapse of its biggest banks in 2008, it said. Possible evidence of insider trading.

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Tories would change FSA

2009-07-18 23
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Councils 'face 90% Iceland loss'

Posted 17/03/2009 - 11:24 by vikingvictim

2009-03-17 (All day)

Councils 'face 90% Iceland loss'

Councils might only receive 10% of their Icelandic investments

Councils with millions trapped in failed Icelandic banks might have to write off 90% of their investments, a financial consultant has said.

Mark Horsfield, of Arlingclose which advises more than 50 councils, said current market trading suggests that councils could even lose up to 99.5%.

One hundred and twenty-three councils have millions of pounds frozen in accounts in Iceland.

Spending watchdog the Audit Commission also has cash trapped there.

Mr Horsfield, director of Arlingclose, said it was tracking the market in unsecured debt linked to the winding up of companies.

Icelandic warning

"It is trading at the moment somewhere between half a pence in the pound and nine-and-a-half pence in the pound," he told File On 4.

He added that this was a "reasonable indicator" of the likely payout unless "a deal is structured" between governments and the liquidator.

Mr Horsfield said the company had been concerned since 2006 about Icelandic banks with their aggressive and persistent touting for business.

He said the firm was also worried at the time about the Icelandic economy, as the government did not look as if it had the cash to meet any liabilities should a bank collapse.

Arlingclose's council clients were advised not to touch Icelandic banks. the company even used this information when it tendered for new business with councils.

"It was something we felt passionate about as it had the potential to create problems," he said.

"We didn't have privileged access to information; it was just general market intelligence."

Dr Phyllis Starkey MP, who chairs the Commons Select Committee on Communities and Local Government, told the BBC a lot of councils "sleepwalked" into risky investments in Iceland.

"A great many people who should have known better seem to have been asleep at the wheel while this crisis was developing," she said.

The committee has been taking evidence about public sector investment and is due to report next month.

Among the public bodies which has lost money in Iceland, is the Audit Commission the official watchdog over public spending, which has loaned £10m to Icelandic banks.

I would hope that the Audit Commission thinks a bit more seriously about why it did not see this area was becoming high risk
Dr Phyllis Starkey MP, who chairs the Commons Communities and Local Government select committee

"I can't say exactly what the committee report is going to say," said Dr Starkey but she added: "I think on the basis of the evidence, it will be highly critical of some local authorities, or the Audit Commission and certainly some of the treasury management advisers for local authorities.

"I would hope that the Audit Commission thinks a bit more seriously about why it did not see this area was becoming high risk."

The Audit Commission told the BBC: "The commission has been entirely transparent about its exposure to the failure of the Icelandic banks.

"It made the facts public on 16 October and commissioned and published a review of the investments, the findings of which were verified by KPMG."

The commission added: "The findings of the review have been acted upon and we have nothing to add to the detailed reports we have already put in to the public domain."

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BBC Radio 4's Money Box Saturday, 21 February 2009 at 1204 GMT & Sunday 22 February 2009 at 2102 GMT.

Posted 21/02/2009 - 07:44 by Yorkie

2009-02-21 (All day)

BBC Radio 4's Money Box will be broadcast on Saturday, 21 February 2009 at 1204 GMT.
The programme will be repeated on Sunday 22 February 2009 at 2102 GMT.

Kaupthing Isle of Man
Kaupthing Singer and Friedlander Isle of Man (KSFIoM) savers should receive back at least 60% of the money they have lost under a scheme of arrangement approved in a Manx High Court hearing on 19 February.
Treasury officials believe the scheme would offer a better outcome for the 10,000 depositors than a liquidation.
The hearing was adjourned until 9 April for further changes to the scheme, which needs depositor approval.
But why aren't depositors happy?
We speak to John Spellman, director of the Financial Services Division of the Treasury, Isle of Man Government

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Kent Council Deposited £Millions with Icelandic banks despite warnings on 30th September 2008

Posted 17/12/2008 - 01:26 by steveejeb

2008-12-17 (All day)

Kent County Council invested £50m in Icelandic banks which collapsed
A local authority deposited £3m in an Icelandic bank a day after being warned against it, a report has revealed.
Kent County Council, the UK's largest council investor in troubled Icelandic banks, had £50m deposited in Landsbanki, Heritable and Glitnir Bank.
A report by Price Waterhouse Cooper (PWC) said the council was sent an e-mail warning them that Heritable Bank was no longer a sound investment.
The council said a staff member did not read the email until it was too late.
The e-mail was sent by a financial advisor at 1500 BST on 30 September to a junior officer at the council.
'Not malicious'
The review of treasury management procedures carried out by PWC said: "A human error resulted in an e-mail containing the information not being read and processed in time."
It said that the latest information on recommended investments should be sent to several people to "ensure timely updating" in future.
The rest of the £50m had been deposited or contracted when the council believed the banks were safe based on advice from its financial advisors, the report added.
Councillor Nick Shard said: "There will be disciplinary action against the individual.
"This is not fraud, this is not malicious, this is human error."
The council had £17m invested in Landsbanki, a further £18.35m in its UK subsidiary Heritable, and £15m in Glitnir Bank. All three banks collapsed in October.
More than 100 local authorities in the UK had more than £800m in Icelandic banks.

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