Could Icelandic justice be in view?

  • anrigaut
  • 19/10/08 30/10/09
  • a depositor
  • Offline
Posted: Fri, 20/01/2012 - 22:31

Recent weeks have seen some hopeful (to me at least) signs that the long-awaited day of reckoning may perhaps at last be approaching for the Viking pirates who enriched themselves hugely through the casino banks funded by our money and then siphoned off as much as they could in the dying days (or even in what should have been the dead days), leaving the likes of us to take the rap. Can we dare to hope that the major perpetrators will one day be punished and feel some of the pain they inflicted on others by their apparently unbounded and thoughtless (Kaupthinking) greed?

The Winding-up Boards of all three collapsed Icelandic banks appear to be going after managers and executives with punishing law-suits which, if successful, could help fill the coffers for the benefit of creditors. In the case of Kaupthing, we stand to gain some financial benefit from any successful actions (through both KSFUK's claim against K hf and our parental guarantee). And even if the financial impact is limited or non-existent, justice will surely be sweet?

I have posted links to several recent reports as News items. But I thought it might be useful to group them together here, where hopefully others may be added. I hope I have accurately captured the essential in my brief summaries below – see the links for more details.

In November (2011), it was announced that the former CEO of Kaupthing, suspected of market abuse, had been called in for questioning as part of the ongoing investigations of the Special Prosecutor's Office (SPO). At the same time, the SPO was reported to be “currently investigating more than 200 cases, ten of which are expected to be completed before the end of this year.”
http://www.icelandreview.com/icelandreview/search/news/Default.asp?ew_0_...

This was followed in December by the news that six former Kaupthing executives, whose personal responsibility for loans they had received to buy shares in the bank had been lifted shortly before the collapse, had been judged liable to repay these loans. Action is being taken to ensure that assets both in Iceland and overseas can be seized to cover the debts (subject to confirmation by the Supreme Court). These are just some of “tens of cases” said to be still in court.
http://www.icelandreview.com/icelandreview/daily_news/Kaup%C3%BEing_Bank...

Then this month came news that the winding-up committee of Glitner has filed charges against two of its former CEOs for damages relating to a dubious loan.
http://www.icelandreview.com/icelandreview/search/news/Default.asp?ew_0_...

and that the Landsbanki Winding-Up Board is suing the top management of the bankrupt bank, board-members and insurers for damages caused by not stopping the bank’s operations on 3 October 2008 when, according to the WUB, the bank was de facto bankrupt.
http://uti.is/2012/01/landsbanki-winding-up-board-sues-managers-non-exec...

http://www.icelandreview.com/icelandreview/search/news/Default.asp?ew_0_...

http://uti.is/2012/01/more-on-landsbankis-last-hours/

4.958335
Your rating: None Average: 5 (24 votes)

Comment viewing options
Select your preferred way to display the comments and click "Save settings" to activate your changes.

Who were the “muppets” of the Icelandic banks?

  • anrigaut
  • 19/10/08 30/10/09
  • a depositor
  • Offline

To anrigaut

  • Gordon 45
  • 22/10/08 n/a (free)
  • a depositor
  • Offline
  • Thu, 15/03/2012 - 17:51

Anrigaut,

Once more thank you very much for the informative and horrific information surrounding the whole Icelandic Banks' affair.

Most appreciated,

Gordon 45


Icelandic bank auditors sued

  • anrigaut
  • 19/10/08 30/10/09
  • a depositor
  • Offline
  • Wed, 14/03/2012 - 18:13

Thanks are again due to Sigrun for picking up on the latest from Iceland:

Icelandic bank auditors beware: Landsbanki’s auditors sued
http://uti.is/2012/03/icelandic-bank-auditors-beware-landsbankis-auditor...
"The Winding-Up Board of Landsbanki has sued the bank’s external auditor, PriceWaterhouseCooper, apparently for hundreds of millions of kronas in damages. The SIC report makes it abundantly clear that with so much wrong in the banks, their annual accounts were not much to rely on. And that raises serious questions regarding the auditors. Questions that the Landsbanki WUB has now formulated in a writ of 90 pages. It seems certain that other cases will follow. The question is if the Office of the Special Prosecutor will follow suit, bringing criminal charges against auditors.
...
This case will no doubt be followed with great interest, not only in Iceland but also abroad. New York Attorney General is pursuing a case against Lehman’s auditors, Ernst & Young, for an alleged fraud involving a so-called Repo 105 transaction. Considering the evidence in the SIC report, the auditors for the two other Icelandic banks, Glitnir and Kaupthing, must already be pouring over their auditing and their relationship with the banks during the last years of the banks."

Glitnir WUB sues PwC Iceland – and PwC UK
http://uti.is/2012/03/glitnir-wub-sues-pwc-iceland-and-pwc-uk/
"The Glitnir Winding-Up Board has sued not only PwC Iceland but also PwC UK, according to Ruv. This case is further in the process than an identical case that Landsbanki WUB is pursuing against the bank’s external auditors, incidentally PwC, due in court in June. The Glitnir case will come up in the Reykjavik District Court April 12.
...
As pointed out earlier, it seems logical that the auditors of all the banks will be presented with similar cases since the SIP report indicates similar shortcomings in all the banks. The really interesting question is if the Office of the Special Prosecutor will take action against the banks’ external auditors."

Auditors (notably PwC) in the firing line. Remains to be seen whether Kaupthing WUC follows suit and, as Sigrun says, whether the Special Prosecutor also acts. ...


....

  • follow_the_tao
  • 11/10/08 31/05/09
  • a depositor
  • Offline
  • Thu, 15/03/2012 - 18:17

....


Hard core Kaupthinking

  • anrigaut
  • 19/10/08 30/10/09
  • a depositor
  • Offline
  • Sat, 25/02/2012 - 12:57

New blog from Sigrun:
http://uti.is/2012/02/the-hard-core-kaupthinking-and-ice-banking/

"Here is a video, with a voice-over in English based on Icelandic tv reporting on Kaupthing, explaining the bank’s prop trading, how it kept the share price high and allegedly manipulated the market. “Kaupthinking, thinking beyond” was the slogan the bank used in its advertising.

To my mind, the prime example of Kauthinking is found in an email sent by Kaupthing Luxembourg manager Magnus Gudmundsson, now indicted by the Office of the Special Prosecutor, and Armann Thorvaldsson CEO of Kaupthing Singer & Friedlander. In the mail they called themselves “association of loyal CEOs.” Describing the set-up of a certain bonus scheme, they write: “The bank wouldn’t make any margin calls on us and would shoulder any theoretical losses, in case they occurred.” (In Icelandic: ,,Bankinn hefði engin margincall á okkur og myndi taka á sig fræðilegt tap ef að yrði.”

This is the Kaupthinking behind all loans to favoured clients, be they Icelandic or foreign. The question is: What sort of banking was this? In the interest of Kaupthing’s 33.000 shareholders? – To be fair, this kind of lending wasn’t unique to Kaupthing. It was common to the Icelandic financial system before the collapse of the banks (and hopefully no longer). Creating a slogan, this was Ice-banking."

The MUST WATCH video is here: http://www.veoh.com/watch/v280335647msG6CQr


Former Iceland central bank chief warned of looming crisis

  • glen07
  • 21/10/08 n/a (free)
  • a depositor
  • Offline
  • Tue, 06/03/2012 - 22:45

http://www.reuters.com/article/2012/03/06/us-iceland-trial-idUSTRE8251F2...

Former Iceland central bank chief warned of looming crisis

REYKJAVIK | Tue Mar 6, 2012 4:24pm EST

REYKJAVIK (Reuters) - Iceland's former central bank chief had warned about the country's over-sized banks before they went bust in 2008, he said Tuesday at the trial of a former prime minister for failing to prevent the crisis.

David Oddsson was speaking on the second day of witness hearings at the trial of Geir Haarde, the only political leader to face prosecution over the crisis that hit the world economy. He has denied the charges.

Iceland's top three banks all collapsed in late 2008 after years of debt-fuelled expansion. The country of just 320,000 people was forced to borrow around $10 billion from the International Monetary Fund and other lenders.

Oddsson, blamed by many in Iceland for deregulation which led to the banks growing to 10 times the size of the economy, told the court he met Haarde and others in February 2008.

There, he had related information from talks with European bank officials at the Bank of England a few days earlier.

He said he had "warned the government, in the strongest possible terms, that the Icelandic banks were facing serious difficulties re-capitalizing themselves as the European banks no longer believed in their viability."

Coming out of that meeting, Oddsson said he had told colleagues: "If this information does not wake these people up, nothing will." Oddsson said Haarde had not always believed his expressions of concern about the banks.

"The trouble was that all the available data, such as the banks' quarterly and annual accounts, painted a very rosy picture of the situation, while my views were based on a very uneasy feeling that I had for a long time," he said.

Oddsson and Haarde have long been linked politically.

Oddsson was prime minister from 1991 to 2004 and went to the central bank in late 2005, before being forced out in early 2009. Haarde was prime minister from 2006 to early 2009, and before then a finance minister, from 1998 to 2005.

Haarde is being tried at a special court of impeachment set up in 1905, which has so far never been used. If found guilty, he faces up to two years in jail.

Oddsson was forced out of the central bank after the crisis and is now the editor-in-chief of a leading daily.

Haarde is charged with gross negligence for failing to take proper measures to prepare for an impending financial crash. He is also accused of failing to rein in the banks before their expansion threatened the whole economy.

Iceland's biggest banks were all taken over by the state in late 2008 after the credit crunch sparked by the collapse of Lehman Brothers froze their access to funds.

Iceland ring-fenced the domestic operations of its banks and let their international operations go bankrupt.

The economy nosedived and the country was forced to impose capital controls to prop up the value of its krona currency.

The economy has started to recover, having borrowed on the international bond markets last year and getting its investment grade back from Fitch in February.


Iceland's ex-PM calls case preposterous

  • glen07
  • 21/10/08 n/a (free)
  • a depositor
  • Offline
  • Tue, 06/03/2012 - 22:48

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=1079...

Iceland's ex-PM calls case preposterous
By Anna Andersen 5:40 AM Wednesday Mar 7, 2012

Expand Geir Haarde arrives with his wife Inga Jona Thordardottir at a a court in Reykjavik. Photo / APA former Prime Minister of Iceland yesterday rejected charges he failed to adequately protect his country's economy from financial shocks, as he took the stand in the first criminal trial of a world leader to result from the 2008 financial crisis.

Geir Haarde said neither he nor financial regulators knew the real state of Icelandic banks' precarious finances until they collapsed in October 2008.

"I reject all accusations and believe there is no basis for them," Haarde said. He said it was the first chance he had to answer questions in the case.

Haarde became a symbol of the bubble economy for Icelanders who lost their jobs and homes after the country's main commercial banks collapsed in the course of one week in 2008, sending its currency into a nosedive and inflation soaring.

Prosecutors opened the case at the Landsdomur, a special court being convened for the first time in Iceland's history.

Part of their case hinges on a charge that Haarde failed to implement recommendations that a government committee had drawn up in 2006 to strengthen Iceland's economy.
Haarde told the court the committee's work could not have prevented Iceland's economic crash.

"Nobody predicted that there would be a financial collapse in Iceland" in 2008, he said, adding that the Government did not fully understand how much debt the country's banks had on their books.

"The bankers did not realise that the situation was as dire as it was," Haarde said. "It was not until after the crash that everyone saw it coming."

Iceland's banking sector ballooned during a decade of boom, growing to nine times the tiny nation's annual gross domestic product, before collapsing under the weight of its debts.

Haarde told the court the banks' size would not have been a problem had it not been for two things: their fiscal recklessness and the global credit squeeze.

"We knew about the crisis, but not the banks' lack of accountability and their illegal activities, which not even the Financial Supervisory Authority seems to have realised," he said.

Haarde is accused of negligence for failing to prevent the financial implosion from which the small island country is still struggling to recover.

In the crisis' aftermath - as unemployment and inflation skyrocketed - many sought to affix blame for the havoc across the 330,000-strong nation. A wave of public protests forced Haarde out of government in 2009.

Haarde has pleaded not guilty and sought to have all charges dismissed, calling the proceedings "preposterous". He has insisted Icelanders' interests were his "guiding light", and he blamed the banks for the crisis, saying his "conscience is clear".

The trial is expected to last until mid-March, with the court taking another four to six weeks to deliver its verdict.

  • AP

By Anna Andersen


While Anrigauts on holiday

  • Tricky Dicky
  • 24/10/08 30/05/09
  • a depositor
  • Offline
  • Wed, 07/03/2012 - 10:36

Filling in with this while anrigauts on a well deserved holiday

http://uti.is/2012/03/the-trial-over-ex-pm-geir-haard/

Iceland pre-and post-collapse
The trial over ex-PM Geir Haard
make a comment

Monday March 5 was the first day of trial against Geir Haarde, Iceland’s Prime Minister June 2006 – Februar 2009. Haarde is being tried by a special court, “Landsdómur,” never before convened in the history of Iceland. This court’s only function is to try ministers and is modelled on the Danish legal system.

The trial has been covered by the world media, ia by the BBC, Guardian and Sky.

The four charges brought against Haarde all regard alleged omissions in Office and are the following:

1 Haarde didn’t guarantee that the work of a governmental consultative group on financial stability was focused and led to results.*

2 He did not take the initiative in an offical action to reduce the size of the banking sector.

3 He did not ensure that the UK Icesave accounts were brought into a UK subsidiary.

4 He did not call cabinet meetings on important governmental issues as the constitution stipulates.

Regardless whether people think it’s fair to indict only one minister it is already clear after the first two days that the trial will provide an interesting insight into a whole range of issues related to the collapse of the banks. Although the setting and the purpose differ, in Iceland the court hearings are being compared to “a truth commission” since it will give the general public the possibility to hear what politicians, civil servants and bankers have to say on the various issues in question.

Unfortunately, the court has decided against broadcasting the hearings. There are only ca 40 places available in the court hall for the media and the general public to share. The court has been asked to reconsider its decision. The hope is very much that it will change its mind.

On the first day, Haarde was questioned for eight hours. Tuesday, witnesses were called in for questioning. Below is a list of the witnesses published by the court:

Monday March 5:

Geir Haarde

Tuesday March 6:

Bjorgvin Sigurdsson former Minister of Trade

Arnor Sighvatsson former chief economist, CBI

David Oddsson former Governor of the CBI

Wednesday March 7

Ingimundur Fridriksson former Governor of the CBI

Baldur Gudlaugsson former permanent secretary of the Ministry of Finance

Bolli Thor Bollason former permanent secretary of the Prime Minister’s Office

Aslaug Arnadottir former head of department in the Ministry of Trade and chairman of the board of the Deposit Guarantee Fund

Jon Sigurdsson former chairman of the board of the FME and member of the board of the CBI

Jon Th Sigurgeirsson head of the Office for the Board of Governors of the CBI

Thursday March 8:

Jon Thor Sturluson former assistant to the Minister of Trade

Jonas Fr Jonsson former director of FME

Jonina Larusdottir former permanent secretary of the Ministry of Trade

Hreidar Mar Sigurdssonr former CEO, Kaupthing

Gudjon Runarsson director of the Icelandic Financial Services Association

Runar Gudmundsson head of the Insurance Department FME

Thorsteinn Mar Baldvinsson former chairman of the board at Glitnir

Friday March 9:

Sigurdur Sturla Palsson former head of CBI’s International Department

Tryggvi Thor Herbertsson former economic adviser to the Government

Vilhelm Mar Thorsteinsson former head of treasury, Glitnir

Heimir V Haraldsson former member of Glitnir ResCom

Johannes Runar Johannsson former member of Kaupthing ResCom

Larentsinur Kristjansson former chairman of Landsbanki ResCom

Vignir Rafn Gislason certified accountant PWC

Kristjan Andri Stefansson former head of department, Prime Minister’s Office

Sylvia Kristin Olafsdottir former head of contingency planning, CBI

Ossur Skarphedinsson former Minister of Industry

Johanna Sigurdardottir former Minister of Social Affairs

Monday March 12:

Ingibjorg Solrun Gisladottir former Minister of Foreign Affairs

Sigurdur Einarsson former chairmand of the board, Kaupthing

Larus Welding former CEO Glitnir

Stefan Svavarsson chief accountant CBI and member of the board, FME

Halldor Kristjansson former CEO Landsbanki

Sigurjon Arnason former CEO Landsbanki

Bjorgolfur Gudmundsson former chairman of the board, Landsbanki

Tueday March 13:

Tryggvi Palsson former head of financial stability, CBI

Gudmundur Jonsson head of lending, FME

Jon Thorsteinn Oddleifsson former head of treasury, Landsbanki

Sverrir Haukur Gunnlaugsson former Icelandic ambassador, UK

Arni M Mathiesen former Minister of Finance

Sigridur Benediktsdottir member of the SIC

Tryggvi Gunnarsson member of the SIC

Atli Gislason member of Althing

Birgitta Jonsdottir member of Althing

Eyglo Hardardottir member of Althing

Lilja Rafney Magnusdottir member of Althing

Magnus Orri Schram member of Althing

Oddny Gudbjorg Hardardottir member of Althing

Steingrimur Sigfusson member of Althing

As this list show, both Prime Minister Johanna Sigurdardottir and Minister of Economic Affairs Steingrimur Sigfusson will appear before the court. It’s also an intriguing thought that bankers Sigurdur Einarsson, Hreidar Mar Sigurdsson and Larus Welding have already been indicted by the Office of the Special Prosecutor. The two CEOs of Landsbanki have been sued by the bank’s WUB and will most likely, at some point, be indicted by the OSP. The first OSP case ruled on by the High Court was against Baldur Gudlaugsson who recently was sentenced to two years in prison for insider trading.

Last but not least, Bjorgolfur Gudmundsson might have a flash back when he takes place before the court: it was in this same hall that Gudmundsson, together with his son Bjorgolfur Thor Bjorgolfsson and their business partner from St Petersburg Magnus Thorsteinsson, signed the agreement to buy 42% of Landsbanki in January 2003.

*The consultative group was comprised of civil servants from the Prime Minister’s Office, the Ministry of Finance, the Ministry of Business Affairs, the FME and the CBI. It was founded with a written agreement on February 21 2008. Its remit was financial stability and contingency planning. On its purpose and work see the executive summary of the SIC report. – I will be following the trial, unfortunately from abroad, but will try to bring a short digest of interesting testimonie


The Haarde Trial: some highlights from the first 3 days

  • anrigaut
  • 19/10/08 30/10/09
  • a depositor
  • Offline
  • Wed, 14/03/2012 - 18:19

Now back from a most enjoyable holiday. Thanks TD and glen07 for keeping an eye on things in my absence.

The next installment from Sigrun is here:
http://uti.is/2012/03/the-haarde-trial-some-highlights-from-the-first-3-...

"Although it’s tempting to think of the trial of ex-PM Geir Haarde as a national katharsis and a truth commission that’s not the case at all. There is one person on trial and that’s Geir Haarde. The witnesses throw their own light on facts and events and it’s of great interest to hear the different versions of events. Even though much of it is already known from the SIC report it’s interesting to hear the different persons recount different things. As is in the nature of the whole exercise, prosecutor Sigridur Fridjonsdottir uses the questioning to fill in and clarify documents, which have been collected. ... "


The Haarde trial drawing to an end: a summary

  • anrigaut
  • 19/10/08 30/10/09
  • a depositor
  • Offline
  • Thu, 15/03/2012 - 22:45

http://uti.is/2012/03/the-haarde-trial-drawing-to-an-end-a-summary/

"State prosecutor Sigridur Fridjonsdottir has now summed up her reasoning in the case against ex-PM Geir Haarde. ...

... At the end of 2007 the banks were way beyond what the state could shoulder and save. At that point, with a catastrophe in sight – for anyone who was in the position to see it – the Government should have prepared for the banks’ end. There were some tentative actions such as a draft by mid 2008 for an Emergency Bill, passed on October 6 2008. Another tentative action was the consultative group, which never functioned properly.

Tryggvi Palsson said that the testimonies of the bankers at the Haarde trial showed they were still in denial of what happened. ... "


Geir Haarde acquitted – except for one charge, but no punishment

  • anrigaut
  • 19/10/08 30/10/09
  • a depositor
  • Offline
  • Mon, 23/04/2012 - 19:24

http://uti.is/2012/04/geir-haarde-acquitted-except-for-once-charge-but-n...

Ex-PM Geir Haarde is acquitted by the Court convened by Althingi to judge his ministerial actions related to his actions during 2007 and 2008 – but the majority, 9 out of 15, rule that he broke law on ministerial duty to hold cabinet meetings on important issues. No punishment is given.
...

In addition, there is the one charge, on holding cabinet meetings on important issues, that he is then sentenced for.

Also reported by the BBC:
http://www.bbc.co.uk/news/world-europe-17817174


Geir Haarde follow-up

  • anrigaut
  • 19/10/08 30/10/09
  • a depositor
  • Offline
  • Wed, 25/04/2012 - 20:51

More comment from Sigrun on the Geir Haare verdict here:

http://uti.is/2012/04/the-haarde-trial-politicians-and-accountability/

and here:

http://uti.is/2012/04/the-fall-out-of-the-haarde-trial/

with link to an interesting debate (at least the first part) on Al Jazeera, with Sigrun on the panel:
"One of the points I made was that although not saying that Iceland is a leading example in handling its crisis, there has at least been some efforts made to explain and clarify. Losing main banks – or saving them as others have done – is not a natural catastrophe like an earthquake or a volcanic eruption but happens slowly slowly due to human actions."

Quite so ...


Mr Geir Haarde's response is interesting.

  • follow_the_tao
  • 11/10/08 31/05/09
  • a depositor
  • Offline
  • Wed, 25/04/2012 - 01:28

He still doesn't understand.
http://www.telegraph.co.uk/finance/financialcrisis/9224451/FSA-chief-Hec...

What happened in Iceland happened in the IoM. The UK as well. Sant's pronouncement entertains, "They (Turner, Sants, king, whilst creaming it.. it doesn't cost them anything... they float above... )

And it is still happening.

I've picked this link without looking into it that much because I'm an impatient soul some times and I'm guessing that this link reflects his recent paper/book..

http://www.youtube.com/watch?v=wVV47aEVImk

and on looking at the first section it does seem to fit the bill..

There is an old analysis (Baran)
http://es.wikipedia.org/wiki/Paul_A._Baran
If you look at this closely you can see the roots, bases, process... you're an astute person Anrigaut.

I don't much care for what the rest think, well apart from Icecrusher.....
They can make the effort if they want..

I feel the need to mention what I presume is the perspective of Gavin.
Gavin is a sharp guy. He's just maximising his own return. Yes Gavin I do understand I just wonder whether you do. Yes you're sheep farming,,,,, I just wonder where your heart is.?

Noblesse oblige or does avaricia le oblige?

I'll close for now.


@ ftt

  • anrigaut
  • 19/10/08 30/10/09
  • a depositor
  • Offline
  • Wed, 25/04/2012 - 20:49

Re Sants -there's none so blind ... Understanding would no doubt be too painful.

Afraid I don't do Spanish, however closely I might look! But good interview with Galbraith - thanks for the link.

From a more European perspective, some good articles on Ian Fraser's blog last month:
http://www.ianfraser.org/2012/03/

and, more recently (among others):

http://www.ianfraser.org/rowan-bosworth-davies-its-time-we-stopped-assum...


The CBI loan to Kaupthing, October 6 2008

  • anrigaut
  • 19/10/08 30/10/09
  • a depositor
  • Offline
  • Wed, 14/03/2012 - 18:27

More from Sigrun:

"One of the more incomprehensible events in the Icelandic collapse saga is the loan of €500m issued on October 6 2008 by the Central Bank of Iceland to Kaupthing. The burning question is why this loan was issued. ..."

http://uti.is/2012/03/the-cbi-loan-to-kaupthing-october-6-2008/


OSP brings charges in the al-Thani case

  • anrigaut
  • 19/10/08 30/10/09
  • a depositor
  • Offline
  • Wed, 22/02/2012 - 16:19

This latest development in Iceland relates to Kaupthing.

The Special Prosecutor has filed charges against Kaupthing's CEO Hreidar Mar Sigurdsson, Chairman Sigurdur Einarsson, Kaupthing Luxembourg manager Magnus Gudmundsson and the second largest shareholder in Kaupthing Olafur Olafsson.

See here: http://www.icelandreview.com/icelandreview/daily_news/Kaupthing%E2%80%99...

and Sigrun's initial comments on her blog here:
http://uti.is/2012/02/osp-brings-charges-in-the-al-thani-case/

Sigrun reports: "They are all charged with market manipulation. Sigurdsson and Einarsson are seen as the organisers and are in addition charged with breach of fiduciary duty. Olafsson and Gudmundsson are charged for participation in this breach and Olafsson is in addition charged for money laundering."

Of course they are all aboad and all deny the charges.


The al Thani story behind the Kaupthing indictment

  • anrigaut
  • 19/10/08 30/10/09
  • a depositor
  • Offline
  • Thu, 23/02/2012 - 20:12

Read all about it here:
http://uti.is/2012/02/the-al-thani-story-behind-the-kaupthing-indictment/

Thanks are due to Sigrun for telling the story - and quite a story it is - based on the OSP writ (which is in Icelandic only). Sigrun anticipates the case could come before the District court in the coming months. She also thinks it likely that there will be further indictments "on other questionable issues related to Kaupthing".


To anrigaut - re OSP and the al - Thani case

  • Gordon 45
  • 22/10/08 n/a (free)
  • a depositor
  • Offline
  • Thu, 23/02/2012 - 15:19

Hi Anrigaut,

Just to say once again a big thank you for these kind of updates, so nice to hear, perhaps that someone or some group of people might pay some form of penalty at the end of the day - and maybe get some cash back into the Kaupthing hf WuCommitee's hands. Can only hope that our 'dear friends' in the IOM can be brought to justice to.

Regards,

Gordon 45


First Supreme Court ruling in case brought by Special Prosecutor

  • anrigaut
  • 19/10/08 30/10/09
  • a depositor
  • Offline
  • Tue, 21/02/2012 - 18:09

Interesting blog from Sigrun Davidsdottir on the verdict reported here:
http://chat.ksfiomdepositors.org/news-item/icelander-gets-prison-insider...

Selected extracts below - but the whole is worth a read:
http://uti.is/2012/02/baldur-the-blame-game-and-the-flat-screen-theory-o...

"The first Supreme Court ruling in a case of insider trading in Iceland has constituted a clear example: the gain was ISK192m, €1.2m, the sentence is two years imprisonment. There are two fundamentally significant aspects of this case: it’s the first Supreme Court ruling in a case brought by the Office of the Special Prosecutor – and the man found guilty, Baldur Gudlaugsson (b. 1946), is not one of the thirty or so major players in the collapse of the Icelandic banks but a former permanent secretary (a civil servant) at the Ministry of Finance. ...

... At the moment, the question of blame is widely debated in Iceland – and the ruling in Gudlaugsson’s case leads to the sarcastic remark, often heard since the District Court ruling, that one civil servant, who made a profit of ISK192m, may be the only person to be sent to prison for criminal acts connected to the collapse of the banks. A scapegoat for the infamous thirty who many Icelanders do blame for these events. – It’s an untimely remark: it’s still far too early to tell what the outcome of the present and coming OPS cases will be.

Apart from Gudlaugsson’s case, the debate on blame falls into two categories: there is what could be called the “Flat-Screen Theory of Blame” – and then the theory, according to which the OSP is working, that alleged crimes are committed by certain individuals. Suspicion of criminal doings should lead to an investigation and, depending on the outcome of the investigation, charges should be brought.

The “Flat-Screen Theory” draws its name from an interview with Bjorgolfur Gudmundsson, who together with his son Bjorgolfur Thor, owned 42% of Landsbanki at the time of its collapse.* In the interview, published a few months after the events of October 2008, Gudmundsson pointed out that Icelanders had lived beyond their means, the number of flat-screens sold in Iceland being a case in point. The core of this theory is that everyone is to blame. Jon Asgeir Johannesson recently aired the same idea – no single person did anything wrong or is to blame; in his version, the collapse seemed like a natural disaster. What happened in Iceland, according to the “Flat-Screen Theory,” was a sort of collective madness that ended in a collective collapse. ... "

Sigrun concludes:

"It’s fair to say that there is a battle raging in Iceland between the “Flat-Screen” theorists and those who think investigations are necessary in order to show that crime doesn’t pay. That battle is fought over who gets to interpret the past. Those who eventually manage to shape the Icelanders’ understanding of events and circumstances up to October 2008 will come to own the present – and eventually the political and financial future of Iceland. "


Robert Tchenguiz

  • D RAM
  • 13/10/08 01/08/14
  • unspecified
  • Offline
  • Sun, 29/01/2012 - 06:05

I note from today's MailOnline that Robert Tchenguiz "the largest shareholder of Kaupthing " who borrowed GBP 1.7billion from Kaupthing is in the process of selling a huge portfolio of property to raise GBP 3billion to clear debts of GBP 2billion ( sorry I've used GBP my computer doesn't have the standard pound sign ).

Has this report got any significance for recovery of the GBP1.7billion by Kaupthing ( presumably Kaupthing hf of Iceland ) and hence assist us to recover our money under the parental guarantee ?

D RAM


Vincent Tchenguiz, not Robert ...

  • anrigaut
  • 19/10/08 30/10/09
  • a depositor
  • Offline
  • Sun, 29/01/2012 - 10:40

D RAM,

This stuff is mostly beyond me. I note that the property portfolio, which "comes with £2 bn worth of debts", is being sold by Vincent Tchenguiz, not Robert. Though the brothers affairs are inter-connected and Vincent is said to be "acting on behalf of the Tchenguiz Family Trust".

It was Robert who is said to have borrowed £1.7 bn from Kaupthing. As far as I can make out, Vincent was less heavily involved with Kaupthing, mostly offering collateral for his brother. It was announced in September that Vincent had made a deal with Kaupthing to 'reconstruct controversial loan agreements', as part of which he agree to drop his £1.5 bn legal claim against the bank. But the terms of the settlement were kept confidential. I can only guess, but reading between the lines I suspect that the bulk of the £2 bn of debts attached to the property portfolio is probably not owed to Kaupthing.

See also here: http://www.independent.co.uk/news/uk/home-news/tycoon-to-clear-his-debts...

Reporting on the same story, NOTW adds that "Private Investigators have been engaged to discover whether Tchenguiz used any money from Kaupthing Bank to acquire property. A group of those who lost money to Kaupthing Bank have engaged also forensic accountants to trace if the missing billions any part went to Tchenguiz."

http://www.newsoftheworldonline.eu/feed-categories/4931-3-billion-price-...


@Anrigaut

  • D RAM
  • 13/10/08 01/08/14
  • unspecified
  • Offline
  • Tue, 31/01/2012 - 05:27

Anrigaut:

Thanks so much for your clarification. The shenanigans attached to many of these multi-billionaires is a complete mystery to me - they appear to live a charmed life insulated from we common mortals.

Oh well, here's to happy days,

D RAM.


@ D RAM

  • anrigaut
  • 19/10/08 30/10/09
  • a depositor
  • Offline
  • Tue, 31/01/2012 - 08:47

For more on Tchenguiz shenanigans and (probable) asset siphoning, you might care to take a look at this: http://thecynicaltendency.blogspot.com/2012/01/britains-biggest-boot-sal...

"... A delicate question arises about why all these freeholds are still in their possession to be sold. At one time most, if not all, were held in subsidiaries of their Consensus Business Group one way or another.

In March 2011 from within this Group a major subsidiary Peverel Group were taken into Administration by Zolfo Cooper because of a default on debt obligations. Clearly by this time these freeholds had been removed.

The chances are that they went to a brass plate company in the British Virgin Islands. ..."

Happy days to you too!
Anrigaut


Tchenguiz

  • Brabander
  • 15/10/08 31/05/09
  • unspecified
  • Offline
  • Wed, 22/02/2012 - 20:59

The Tchenguiz's have connections mere mortals can only dream off.
It is unlikely that their ill gotten riches will ever be touched.


SFO apologises to Tchenguiz over handling of Kaupthing case

  • anrigaut
  • 19/10/08 30/10/09
  • a depositor
  • Offline
  • Fri, 24/02/2012 - 08:10

Quite so Brabander.

Not helped by the SFO's cock-up either:
http://citywire.co.uk/new-model-adviser/sfo-apologises-to-tchenguiz-over...


Nice link, Anrigaut..

  • follow_the_tao
  • 11/10/08 31/05/09
  • a depositor
  • Offline
  • Wed, 01/02/2012 - 04:07

What a crooked web they weave.

Tchenguiz looks like a cowboy, must be a mix of his Iranian colouring, his style of dress in that photo where he has his foot on the bumper of his Bentley and our associations with sphagetti westerns, but substantially the link you've given points out the real problem. These sharks, the Tchenguiz twins, out-manoeuvring whilst playing with the 'banking elite' (clowns like Hester) have ripped off a billion (almost small change nowadays - was more or less the asset size of Kaupthing IoM -) whilst really gutting the rest of us.

And we've got Simpson, and of course all the intellectual might of someone like Bell now King of the IoM sand_ castle, and of course the uncompromising IoM judicial system (take a bow Corlett1) to thank for controlling and regularising the situation.

You are correct Anrigaut in thinking that it is appropriate that the inquest continues. Max Planck seems to me to have it down when he says that the majority can't handle paradigm shifts, and he was talking about physicists. You must be struggling with the conclusions you've reached. Don't worry, you're miles ahead of the pack. And that is what we had to deal with. Talking of the pack, just how are the COI doing?

This is emotional stuff not purely cerebral (as if we could ever forget emotions) and so music fits in.

I really like this track... I've read that Sting's idea for the track was the subject of a stalker. Not a pretty picture and not one that ever occurred to me before I read that comment. But I wasn't surprised. This old NTNN rework sort of fits here.. and why not... why not enjoy a couple of minutes before sorting out the next link?

http://www.youtube.com/watch?v=oFrvr7EB66g


Thanks ftt for the support -

  • anrigaut
  • 19/10/08 30/10/09
  • a depositor
  • Offline
  • Wed, 01/02/2012 - 21:46

Thanks ftt for the support - and the music, which I did indeed enjoy.


What chance for ordinary mortals?

  • anrigaut
  • 19/10/08 30/10/09
  • a depositor
  • Offline
  • Thu, 26/01/2012 - 10:39

"Iceland pre-and post-collapse: Splitting apart debt and assets – and the lost sense of honour to pay one’s debt"

Another excellent blog by Sigrun. Recommended reading - not for the faint-hearted:

http://uti.is/2012/01/splitting-debt-and-assets-apart-and-the-lost-sense...

Selected extracts (but you should read it all):

"... But before it comes to bankruptcy, there are ways to siphon assets off. This was done in the Iceland – not only in the banks but also in the smaller financial institutions such as the building societies. The basic way is to use a cluster of companies as a centrifuge where, in the course of a few years, debt and asset is split apart: the debt stays in certain companies, the assets migrate elsewhere. When things go badly, the debt-ridden companies go bankrupt, little or nothing is left for the creditors whereas assets, bought with the help of loans, have been spirited away. ..."

"...In addition, the Icelandic lenders lent exorbitant amount of money into holding companies such as FL Group, Exista, Samson, Baugur and Milestone, which in turn lent the money on to related parties, paid out dividends or did in other ways split apart debt and assets. By lending money into these holding companies, the companies turned into banks with no risk management.
The three main banks in Iceland all lent to big borrowers who used these methods. ..."

" ... Once money has been channelled out of sight and reach of WUBs and authorities such as tax authorities it isn’t trivial to get the money back into the country of origin, let’s say Ireland or Iceland. ..."


Anrigaut - re 'ordinary mortals'

  • Gordon 45
  • 22/10/08 n/a (free)
  • a depositor
  • Offline
  • Thu, 26/01/2012 - 16:28

Anrigaut,

What chance do we have against this type of horrendous thievery (is that a word) - no chance. Perhaps we were lucky to be in a subsidiary not a branch of Kaupthing.

It is beyond belief.

Thanks again for horrifying but essential reading,

Gordon 45


@Anrigut, Gordon45 et al.. PWC weren't involved in auditing ..

  • follow_the_tao
  • 11/10/08 31/05/09
  • a depositor
  • Offline
  • Tue, 31/01/2012 - 06:26

any of this were they? Mere mortals like oursleves who don't charge 400usd per hour (for answering the telephone and calling PWC's 'pet' (I'd say 'whore' but I'm very crude apparently so kindly ignore this comment) lawyers couldn't possibly understand that 'they were all in it together'. Well in fact they still are. How much does porkie Simpson bill us an hour courtesy of his timeshare in PWC? He gets minders charge free from PWC Central in the UK (I'm an accountant- trust me- UK-PLC-- widest pirates in the known universe.. (Oh hello Valentine.. everything OK.. the COI creaming it still are they-- fighting like George against the dragon.. I just can't get over their CV's.. it is horrible being this cynical Velantine.. I'm sure "he" was a mole when he worked for GS..... and I'm sure he was paying all his taxes as a Devon farmer whilst he had to have an account in the IOM... ---no doubt I'm stupid Valentine... but if it smells bad it is probably shit..... isn't that right .. I can't even remeber our sheep farmers name..))))))))))) (can somebody put a C brackets checker on the above code.....)

Anrigaut.... NICE WORK... OCCUPY!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

yes Valentine,. risk of dirty hands... and confrontation..... Bell pottinger are coming up very clean at present. or is that the reverse?

Pitchforks at the ready...... let's attack the human condition...


What about IOM and UK Justice ?

  • D RAM
  • 13/10/08 01/08/14
  • unspecified
  • Offline
  • Tue, 24/01/2012 - 09:06

Good to hear that Iceland is taking an apparently vigorous approach and seeking return of funds from those who mismanaged/looted Kaupthing hf but has there been any similar attempts by the UK and IOM authorities as regards KSF(UK) and KSF(IOM) ? There was news previously of investigations but have these resulted in even a single person been prosecuted or sued for return of ill gotten gains ?

Thought not,

D RAM


Iceland has the advantage

  • tonycBrisbaneOz
  • 12/10/08 31/05/13
  • a depositor
  • Offline
  • Tue, 24/01/2012 - 11:52

Iceland has the advantage that it no longer in thrall to the financial sector. Not the case in the UK or the city's money funnel on the IOM.

Regards, TonyC


To Anrigaut - re 'could Icelandic Justice be in View'

  • Gordon 45
  • 22/10/08 n/a (free)
  • a depositor
  • Offline
  • Sun, 22/01/2012 - 11:49

Hi Anrigaut,

Once more can I than you for these pieces of information, that help to fill in many of the gaps that I have re these parts of the Investigations, that are happening in Iceland and elsewhere.

Yourself, Glen07 and a few others have done fantastic work on our behalf over the past 3 years and I certainly appreciate it. Your thoroughness and perseverance on behalf of us all is way beyond belief - and I thank you sincerely. And you do come to my aid answering questions that I might flounder with, and also give me information that helps my investigations and estimates when updating my tables.

Others also include Icecrusher with his sharp mind and thoughts, and hopefully between us all, we cover most of the arena surrounding the KSFIOM situation.

I see some of us who still remain, seem despondent that more than 3 years on we have still not yet reached the end - liquidation finalised - but it always (seemed to me anyway) that it could take 7-10 years before it all finished. Hopefully now it might just be finished by Dec 2014 (another guess). And we must stay positive - 83.2% back (of sorts) and hopefully another 10-13% within 17 months. and maybe just that 100%+ by Dec 2014. So it could be so much more worse than it is.

Anyway, thanks once more and keep updating when and where you can,

Gordon 45


Justice for all / us?

  • Julienne
  • 16/10/08 31/08/09
  • a depositor
  • Offline
  • Sun, 22/01/2012 - 20:59

Anrigaut / Gordon / Ice and others that have greater knowledge than I.

Over the last 3 + years I have made some contributions only by way of comments in the press or on our site. I have only been able to do so because you have all been there investigating probing and giving evidence.... which has kept me reading these pages along with information on the other website and continuing to read the press hoping that one day we might all be reunited with ALL of our lost bank deposits.

Without some form of leadership none of us would be where we are today so thanks for filling the gaps that I missed with my own readings and making sense of that which I do not understand.

With continuing fight for our justice. 100% return.


Gordon/ Anrigaut/IceCrusher/Tao

  • Anonymous
  • Offline
  • Sun, 22/01/2012 - 12:47

This has been a Sentence it feels like it ..But here is to all my Inmates!

ALL of you have given me Hope and Expert advice over the years. Without you we would not be still here... So know that you are very much Needed and Valued MORE & MORE..

                                 "United we Stand divided we Fall"

                                                       Aurora