Islandsbanki

Three Landsbanki managers sentenced to jail

2015-10-07 23

The Icelandic Supreme Court has sentenced (in Icelandic) three ex-managers of Landsbanki to jail sentences. Two of them – the bank’s CEO Sigurjón Árnason and director of corporate lending Elín Sigfússdóttir – had earlier been acquitted by Reykjavík District Court. The Supreme Court sentenced the two to respectively 3 1/2 years prison and 18 months prison. The third manager, Steinþór Gunnarsson director of proprietary trading had been been given a nine months suspended jail sentence, which the Supreme Court turned into nine months in prison.

The case was yet another example of bankers being convicted for breach of fiduciary duty, i.e. causing losses by fraudulent lending where laws and the banks own rules were broken. In this particular case over ISK5bn were lent to Ímon, a company with no assets except the Landsbanki shares bought for the fraudulent loans from Landsbanki in the days before the bank collapsed.

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With this sentence, top managers from both Landsbanki and Glitnir have been sentenced to prison. There are still on-going cases against Glitnir managers.

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Glitnir creditors take over 95 pct of Islandsbanki

2009-10-14 23

Iceland has agreed to hand creditors of failed bank Glitnir a 95 percent stake in smaller lender Islandsbanki in payment for losses suffered in last year's banking sector collapse.

Iceland's top commercial banks were brought down by the global financial crisis last October, plunging the Icelandic economy into deep recession and forcing the nation to seek billions of dollars in aid from the International Monetary Fund and other lenders.

Iceland's three biggest banks -- Glitnir, Landsbanki and Kaupthing -- folded within a week a year ago this month, owing more than $60 billion to foreign lenders, and both Landsbanki and Kaupthing have yet to reach agreements with their creditors.

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