General Discussions

  • ng
  • 11/10/08 31/12/20
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Posted: Fri, 10/10/2008 - 05:39

Any general chat about what is going on that doesn't fall into any other categories.

IMPORTANT: How to post links to related News on other sites

As of 21/Oct/08 we have a searchable news archive. Site editors (and anybody else who wants to help) now have the mammoth task of find and re-posting all relevant links that were posted in forums and re-posting as a news item into the archive.

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Please post news items using the Create new News item link near top of right side-bar.

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Gudni Adalssteinsson

  • anrigaut
  • 19/10/08 30/10/09
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  • Wed, 09/03/2011 - 22:12

Gudni Adalssteinsson Kaupthing, chief treasurer (who gave evidence to the Select Committee) also arrested.

http://uti.is/
Sigrún Davíðsdóttir's Icelog

"SFO action re Kaupthing

According to a press release this morning, the SFO has conducted house searches in London and Essex this morning re the Kaupthing investigation. Seven people, aged between 42-54, have been arrested and brought in for questioning. I’m told that two of these people are Vincent and Robert Tchenguiz. Their homes and offices were searched this morning.

Who the other five are is still unclear. Two of Kaupthing’s managers are living in London, that’s Sigurdur Einarsson and Armann Thorvaldsson but it’s unknown if they are among the group arrested this morning. In Iceland, two men, aged 42 and 43, have been arrested, had their houses searched, and have been brought in for questioning.

It’s now been confirmed that Sigurdur Einarsson and Armann Thorvaldsson are among those arrested. – Further, Gudni Adalsteinsson chief treasurer and Bjarki Diego have also been arrested. Interestingly, Adalsteinsson is, since a few months, working for the UK Financial Services Authorities."


Truly amazing!

  • glen07
  • 21/10/08 n/a (free)
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  • Wed, 09/03/2011 - 22:33

Well good to know that the FSA vets its staff.....


Jobs for the Boys

  • expatvictim
  • 10/10/08 01/11/10
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  • Thu, 10/03/2011 - 02:33

No doubt interviewed personally by Mr Sants on the golf course.


Don't Hold Your Breath

  • D RAM
  • 13/10/08 01/08/14
  • unspecified
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  • Thu, 10/03/2011 - 06:04

Even if any of those arrested eventually go to trial and even if any of those are eventually found guilty ( both are very big "ifs" I suspect ), I'm willing to bet that the penalties handed out would be laughable. Don't hold your breath there will be justice under the British weak kneed system.


Not sure that weak justice

  • expat
  • 10/10/08 31/05/09
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  • Thu, 10/03/2011 - 06:24

Not sure that weak justice is going to be the issue DRam, more to the point they have to prove what is essentially insider trading in terms of the excessive loans; show a breach of the law over the signs of the loans; prove a breach of regulations on the matter of using KSF shares as colateral. All highly unorthodox stuff it seems, I hope the SFO have enough evidence to prosectute all concerned. I live in hope!!

Lets face it we've been hearing all sorts of allegations over the years and yet to see a shred of evidence to back them up, so lets hope the SFO can do better!


Robert Peston

  • arny
  • 15/10/08 31/05/09
  • unspecified
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  • Wed, 09/03/2011 - 14:55

Nice little obsevation of his on the BBC website.


Tchenguiz brothers arrested re Kaupthing Collapse

  • anrigaut
  • 19/10/08 30/10/09
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  • Wed, 09/03/2011 - 10:48

City Wire, 09 March:

"Vincent and Robert Tchenguiz have been arrested as part of the investigation into the collapse of Kaupthing, according to the Financial Times.

The FT has reported the arrests were made at 5.30 this morning, while the offices of Vincent’s investment vehicle Rotch Property were raided as part of the investigations, but that the City of London police and the SFO declined to comment.

The SFO said it arrested seven men in London in connection with the circumstances surrounding the collapse of Kaupthing banking group.

Two men have also been arrested in Reykjavik in connection with the investigations.

The SFO said that it had searched two business properties and eight residential addresses in connection with the investigation.

It said the suspects’ ages ranged from 42 to 54. In Reykjavik, connected with the London searches, two residential properties were searched, with two males aged 42 and 43 arrested and interviewed. "

http://citywire.co.uk/new-model-adviser/tchenguiz-brothers-arrested-in-c...


Over 100 under investigation in Iceland bank crash probe

  • glen07
  • 21/10/08 n/a (free)
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  • Sat, 12/02/2011 - 00:57

Over 100 under investigation in Iceland bank crash probe

http://www.icenews.is/index.php/2011/02/11/over-100-under-investigation-...

Posted on11 February 2011.

Iceland’s Special Prosecutor into the banking crisis says that well over a hundred people are being investigated by his office.

Olafur Thor Hauksson told Frettatiminn that well over a hundred people are legally classified as suspects in his team’s investigations into the causes of the Icelandic banking crisis — adding that the number is set to increase quickly in the near future.

So far, the Special Prosecutor has only brought charges in two cases: one over a company called Exeter Holdings and the other against Baldur Gudlaugsson, the former Ministry of Finance undersecretary.

Five people have so far been taken into custody since the prosecutor started work in early 2009.

However, Hauksson and his former chief assistant Eva Joly have regularly stressed that the investigation will take a long time. Joly told the press it could well be four years before satisfactory results are reached. She also stressed that to rush the cases would probably lead to their failure.


For people who actually owe

  • expat
  • 10/10/08 31/05/09
  • unspecified
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  • Thu, 10/02/2011 - 08:18

For people who actually owe Kaupthing a very sizeable amount of money, I can only comment "cheeky bastards"! Their allegation that Kaupthing was trading insolvently before its collapse, is a bit rich considering they owed millions and were as much a part of the sleaze as any party. Little wonder with a.......s like this circling, that it takes so long to get court satisfatcion from Iceland on the guarantee.


Tchenguiz brothers hit Kaupthing with £2bn lawsuit

  • arny
  • 15/10/08 31/05/09
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  • Thu, 10/02/2011 - 07:43

Today's Telegraph Finance pages


Link to "Tchenguiz brothers hit Kaupthing with £2bn lawsuit"

  • tonycBrisbaneOz
  • 12/10/08 31/05/13
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  • Thu, 10/02/2011 - 08:06

Icelandic savings bank criticised for work practice before crash

  • glen07
  • 21/10/08 n/a (free)
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  • Wed, 02/02/2011 - 21:53

I know this article is not referring to Kaupthing Bank but it does show the sort of nepotism, poor banking practices and no due diligence that existed in some Icelandic banks before the crash -

Icelandic savings bank criticised for work practices before crash

http://www.icenews.is/index.php/2011/01/31/icelandic-savings-bank-critic...

Posted on31 January 2011.

It has emerged that before the Icelandic banking crash, the Keflavik Savings Bank (Sparisjodurinn i Keflavik) loaned related parties, owners and managers some 60 percent of the bank’s entire equity.

The country’s FME financial regulator harshly criticised the local savings bank’s emphasis on risky market exposure.

The FME’s scathing report on the Keflavik bank in September 2008 details how the bank loaned four customers around four billion kronur, or 27 percent of all its equity.

The bank loaned around 1,400 million kronur to the Blue Lagoon spa and a further 800 million to Hvatningu; a private company. The report also states that Grimur Karl Saemundsson, former chairman of the board at Icebank (which was the united wholesale and investment banking arm of all the many savings banks in Iceland) owned a 30 percent stake in the Blue Lagoon through the company Hvatningu, which he owned half of, RUV reports.

According to the FME, the Keflavik Savings Bank only measured connectivity between customers based on direct financial links and when the level of closeness between two parties was unclear, there was no formal process for investigating further. The bank was reportedly working on strengthening its monitoring process in the lead up to the crash.

The FME recommended in its report that a database be created so that related parties would not be able to borrow from the bank independently, as happened with the Blue Lagoon case.

At the end of May 2008, money loaned to the bank’s board members, their connected businesses and bank staff amounted to 28 percent of the bank’s capital. That figure rises closer to 60 percent when the bank’s small group of favourite customers is included.

At the time of the crash, many Icelanders held faith in the savings banks as they were perceived to be less aggressive than the big three banks and more risk averse. This did not always turn out to be the case; although the only two banks so far to have not taken a krona of tax payers’ money are both local savings banks.


LSE working paper on Financial Crisis

  • glen07
  • 21/10/08 n/a (free)
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  • Mon, 13/12/2010 - 00:33

For anyone who is interested in the banking crisis from a legal perspective, you might like to read this London School of Economics and Political Science Law Department's working paper - "Managing the Financial Crisis - The Constitutional Dimension".

http://www.lse.ac.uk/collections/law/wps/WPS2010-12_Black.pdf


PricewaterhouseCoopers criticised in Landsbanki crash report

  • glen07
  • 21/10/08 n/a (free)
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  • Sat, 11/12/2010 - 10:57

http://www.icenews.is/index.php/2010/12/10/pricewaterhousecoopers-critic...

PricewaterhouseCoopers criticised in Landsbanki crash report

Posted on10 December 2010.

A report on behalf of Iceland’s Special Prosecutor into the banking crisis says that the Icesave debt upon the Icelandic state would have been massively lower had PricewaterhouseCoopers, Landsbanki’s external auditing company, done its job properly.

According to the report’s Norwegian main author, if PricewaterhouseCoopers had been honest in its reporting of Landsbanki, the bank would have lost its operating licence no later than the end of 2007.

Among other things, the report criticises the auditors for not having flagged up the so-called Icelandic Affair. The Icelandic Group took massive loans from Landsbanki and was allowed to continue borrowing after it became apparent the company would have difficulty servicing its debts. Icelandic Group was saved from being put on Landsbanki’s defaulters’ list by a EUR 40 million loan from Grettir ehf. Grettir ehf. in fact got the 40 million directly from Landsbanki and all three companies involved were owned by Bjorgolfur Gudmundsson.

The theme of the report is that the lines between debtor, creditor and owner were extremely vague at Landsbanki — as with the other banks. For example, loans from Landsbanki to Bjorgolfur Thor Bjorgolfsson (Bjorgolfur Gudmundsson’s son and also a major owner of Landsbanki) were up to ISK 97 billion (USD 839.2 million at today’s rate) between 2007 and the crash in autumn 2008 — 20 billion of that was a loan to refinance foreign debts.

PricewaterhouseCoopers is criticised in the report for not taking the signs of pressure seriously enough — especially the fact that the bank’s director, Einar Thor Haraldsson, had told the auditors personally that he felt under pressure from the bank’s owners. Neverthelass, the company’s annual report on Landsbanki stated in no uncertain terms that PricewaterhouseCoopers had found no evidence to suggest any interferance by the owners in the running of the bank.

The auditors could potentially face up to two years in prison. PricewaterhouseCoopers Iceland has declined to comment until reading the report; but a spokesman said that the company works under strict and professional procedures at all times.


Good example...

  • IceCrusher
  • 14/10/08 25/10/11
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  • Fri, 10/12/2010 - 04:13

Recent news of Iceland coming close to agreeing a repayment deal with the UK and Dutch Governments over their IceSave bail-out money provides a good example of just how much a country can 'borrow' and how long the repayment period can last.

Had there been the will to do so, it is evident that a sovereign loan could have been agreed and repaid by the Isle of Man to the UK over a period of 30 or 40 years or more. I just find it amazing that the UK stumped up an alleged £7 billion to help the Irish (non-UK tax-paying) nation without any hesitation whatsoever, yet despite all our best efforts in consultation and petition with the UK Government, including the exhortations of the TSC, there has been no interest in solving our plight even though it was exacted upon us by actions instigated by the UK Government itself.
Ice

"Britain has welcomed a breakthrough in the £2.3 billion dispute with the Icelandic government over the collapsed IceSave bank.

Reykjavik announced a new draft deal on repaying the cash spent by the Government on compensating tens of thousands of UK savers after the 2008 collapse.

Under the terms of the proposal - which most be approved by Iceland's parliament and signed off by the UK and the Netherlands, which is also owed money - repayments must start by 2016, at an interest rate of 3.3%, and be completed by 2046."


Loan Trust

  • barrona
  • 17/11/08 31/05/09
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  • Sun, 12/12/2010 - 09:53

Ice,
I assume by your recent comments that the loan trust proposal between the UK and IoM governments is now dead in the water?

Like you, I am bewildered and incensed when the UK taxpayer, not Govt. is to stump up about 7 billion pounds to bail out the Irish govt when, for a fraction of this cost, they could have at one fell swoop solved the plight of the IoM depositors.

Is there any feedback on how the talks went between the UK and IoM govts on this issue?

I have a number of expletives which I am tempted to use, but have restrained myself!


Loan Trust

  • Tricky Dicky
  • 24/10/08 30/05/09
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  • Sun, 12/12/2010 - 17:07

The proposal for the loan trust is far from dead in the water, it is still being processed, and worked on.
The reports that both IOM and the UK could provide finacial support for Ireland in its time of economic crisis can only help our cause for the loan trust to be taken ever more seriously.
We are hoping that after anrigauts oral evidence to the SC Inquiry that avenues will open whereby the IOM will start talks with their UK counterparts - who we are in constant communications with - a political solution will not occurr overnight, paitience is required.
The issue of the loan trust has been raised in the media following the Elle Macpherson court case ruling, by comments in response to the vaious articles on this subject.


@Tricky Dicky

  • bellyup
  • 10/10/08 09/01/10
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  • Mon, 13/12/2010 - 00:23

Re reports on possible IOM help to Ireland -

Have you a link to these reports please?


@ barrona re loan trust

  • fight theft
  • 10/10/08 28/05/13
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  • Sun, 12/12/2010 - 10:14

Anrigaut represnting the DAG was to have a presentation hearing meeting with IOM Tynwald re this matter last week but her flight was cancelled due to the foul snowy weather - last I heard she was re scheduled for the 10th (2 days ago) but haven't heard anything yet - not sure if again it has been re scheduled due to the weather. Anrigaut will report as soon as possible after her meeting/hearing. You were right to ask Icecrusher though as he has been pushing for this including in personal meetings with Allan Bell in the IOM rom the early days of our plight. Ice and a few of us were there for the initial court hearings and a few days later the Treasury select committee in London last Feb 2009.

All the best to Anrigaut too. I hope all your strenght is with you you have all of our support


Just back from IOM

  • anrigaut
  • 19/10/08 30/10/09
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  • Sun, 12/12/2010 - 19:23

Thanks fight theft and others for your good wishes.

I did manage to get there this time and have only just got back from the island.

I gave evidence to the Select Committee on Friday (late afternoon). As you will no doubt have realised from previous hearings, this is not a 'presentation', but more of an interrogation (questions from the Committee), though I was allowed some opening remarks. Not an easy exercise ... one always feels one could have done better, but I did my best and think I got across most of the points I had hoped to make. It will all be in Hansard (probably on Monday), so you'll be able to judge for yourself!

It was not ostensibly about 'this matter', but rather a post-mortem on the events since the collapse of the bank, notably the SoA saga and the DCS. But I did manage to add the loan trust idea to the agenda via my opening remarks and was pleased that at least the Committee did not rule it off-topic; they showed some interest and requested we send more details - which we are now working on. Any decisions will of course have to be made at government level. The objective with the Select Committee was to solicit support from them for our call to the IOM Treasury Minister Anne Craine to come to the table and discuss.

I was also interviewed by Manx Radio on Saturday and there should be something on the Breakfast programme Mandate tomorrow (Monday) morning.


Thank you

  • clodhopper
  • 18/01/09 31/05/09
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  • Mon, 13/12/2010 - 18:24

Thank you very much for your support in IOM and going to the island at the risk of being stranded with the weather!

Thanks again and fingers crossed that the gov will think seriously about the load and 'standing in our shoes'


@anrigaut

  • sam
  • 07/12/08 30/09/11
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  • Sun, 12/12/2010 - 23:50

Well done and many thanks.


@ anrigaut

  • mikepapa
  • 10/10/08 n/a (free)
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  • Mon, 13/12/2010 - 16:05

HEAR HEAR - Glad that you good make it this time and of course, my thanks for all your efforts!

Mike


anrigout's efforts on our behalf

  • conned
  • 13/10/08 n/a (free)
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  • Mon, 13/12/2010 - 17:24

Many thanks to you for the hard work you are putting into this on behalf of the depositors.


Thanx Anrigout

  • DJO Gutted
  • 12/10/08 01/06/09
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  • Mon, 13/12/2010 - 21:23

I am still around and read posts religiously everyday. Thanks to all fellow depositors who are sticking together with updates and info ie. Gordon and I pray Anrigout gets some quick results.

Wishing everyone happy holidays
DJO


@anrigaut

  • jmf
  • 16/10/08 31/10/09
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  • Mon, 13/12/2010 - 16:56

Thank you for the great effort on our behalf.


To Icecrusher

  • Gordon 45
  • 22/10/08 n/a (free)
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  • Fri, 10/12/2010 - 19:54

Excellent point made by yourself,

Gordon 45


Breaking Nooz: Icesave Fixed?

  • VikingRaider
  • 10/10/08 31/05/09
  • unspecified
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  • Thu, 09/12/2010 - 18:34

Reuters 9/12/10: The Dutch Finance Ministry said on Thursday that Iceland, Britain and the Netherlands had reached a deal on repayment of about $5 billion owed by Iceland to the other two countries for deposits from failed bank Icesave.

Iceland will pay a fixed interest rate of 3.0 percent on the money it owes to the Netherlands, and will pay a rate of 3.3 percent on the money owed to Britain, the Dutch Finance Ministry said in a statement.

http://www.reuters.com/article/idUSAAT01035420101209


Icesave Dispute Resolved This Week?

  • glen07
  • 21/10/08 n/a (free)
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  • Wed, 08/12/2010 - 11:20

http://icelandreview.com/icelandreview/daily_news/?cat_id=16539&ew_0_a_i...

07.12.2010 | 11:30

Icesave Dispute Resolved This Week?

Prime Minister Jóhanna Sigurdardóttir said in her speech at the Althingi parliament yesterday that she hopes an agreement with British and Dutch authorities on how to proceed regarding the repayment of the Icesave deposits will be at hand in a few days.

However, Árni Thór Sigurdsson, chairman of the parliament’s Foreign Affairs Committee told Morgunbladid that it is not at all certain that a solution to the dispute will be determined this week.

“There are certain items on which there is still disagreement and progress will naturally be determined by whether a solution to all of these items will be found,” Sigurdsson explained, adding that the committee will discuss the situation in the coming days.

As to what caused the thaw in the Icesave talks, Sigurdsson referenced a changed political landscape in the UK and the Netherlands and a new economic situation.

“Many things have changed since we were battling this last time. The political situation has of course changed in these countries and the economic situation has changed, both in the UK and the Netherlands, and in Iceland,” Sigurdsson stated.

“I believe this is the reason that they are now increasingly interested in finding conclusions acceptable to all parties,” the MP interpreted.

“The changed situation can, among other reasons, be explained by how the new governments in the UK and the Netherlands don’t feel tied by what the former governments have said and done in this case. Their hands are free,” he elaborated.

“It could also be that there are economic reasons for them wanting to put more effort into it than they have done until now,” Sigurdsson concluded.


Check the last paragraph - will they find anything?

  • glen07
  • 21/10/08 n/a (free)
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  • Fri, 03/12/2010 - 00:08

http://www.guardian.co.uk/business/2010/dec/01/pricewaterhousecoopers-ac...

Landsbanki administrators accuse auditor of negligence

PricewaterhouseCoopers warned it will face claims for damages on behalf of collapsed Icelandic bank's creditors

* Simon Bowers
* guardian.co.uk, Wednesday 1 December 2010 20.44 GMT

Landsbanki branch Landsbanki was audited by PricewaterhouseCoopers, which has now been accused of negligence by the failed bank's administrators. Photograph: Olivier Morin/AFP/Getty Images

Administrators to Landsbanki, the failed Icelandic bank behind the Icesave internet deposit account scandal, have accused the firm's former auditors, PricewaterhouseCoopers, of negligence, warning the accounting firm they expect to claim damages on behalf of creditors.

Landsbanki's creditors include more than 100 UK councils which placed a total £900m with Icesave and — unlike British retail savers — were not protected by a deposit guarantee. The negligence allegations set out at a creditors' meeting yesterday relate to PwC's audit of Landsbanki's 2007 accounts and an endorsement of its half-year financial update six months later. In the 2007 accounts, Landsbanki told investors: "Icesave, launched in October 2006, has played a key role in transforming the bank's funding profile."

The accusation against PwC's Iceland operations comes after a year of forensic investigations conducted by a team from Deloitte in London. As well as signalling their intention to pursue damages from PwC, administrators have filed a legal claim against former Landsbanki executives relating to losses of more than 30bn kronur (£165m).

It is the second time PwC's Icelandic branch has been accused of major failings in the months preceding Reykjavik's 2008 financial meltdown, which felled all three of the tiny country's outsized banks — Landsbanki, Glitnir and Kaupthing — and forced officials to seek a bailout from the International Monetary Fund.

In its capacity as auditor of Glitnir, PwC was named as a defendant in a legal claim brought by US bond investors in New York in May. The case accuses Baugur retail tycoon Jon Asgeir Johannesson of leading "a sweeping conspiracy to wrest control of Glitnir and fraudulently drain more than $2bn out of the bank to fill their own pockets and prop up their own failing companies".

Of PwC's role at Glitnir, the claim alleges "defendants could not have succeeded in their conspiracy without the complicity of PwC.PwC ... knew what Glitnir's true related party exposure was, reviewed and signed off on financial statements which grossly misrepresented Glitnir's related party exposure."

Separately, forensic accountants from PwC in London have been hired by administrators to Kaupthing to investigate suspicious transactions entered into by the bank in the months before its collapse.


To glen07

  • Gordon 45
  • 22/10/08 n/a (free)
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  • Fri, 03/12/2010 - 10:25

Hi There,

Just want to say thank you once more for your continuing updates within this area that is all part of the overall situation.

People like yourself and anrigaut fulfill an important role in informing us of events that I for one do not get involved in.

Just so grateful,

Gordon 45


Trade with Iceland Supermarkets a Scam?

  • glen07
  • 21/10/08 n/a (free)
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  • Wed, 27/10/2010 - 11:49

http://icelandreview.com/icelandreview/daily_news/?cat_id=16539&ew_0_a_i...

Trade with Iceland Supermarkets a Scam?

Investigators believe that entrepreneur Jón Ásgeir Jóhannesson’s several hundred billion ISK trade with the Iceland supermarkets in the UK may have been a giant scheme to defraud money from the Icelandic banks.

The market abuse may have been going on for years, ruv.is reports. Jóhannesson released a statement yesterday rejecting all such claims.

Stocks in Iceland supermarkets increased by 74 percent in a period of a few weeks in the summer before the banking collapse in Iceland in October 2008. The resolution committees of Landsbanki and Glitnir banks are now trying to find out why.

The trade with Iceland supermarkets is a complicated affair where a number of companies in different countries are involved.

Five years ago a group of Icelandic investors, called A in this news story, led by Jóhannesson and his business partner Pálmi Haraldsson was founded.

They bought the supermarkets called Iceland in a leveraged buyout with the assistance of the Icelandic banks. According to RÚV, the purchasing price was close to ISK 35 billion (USD 311 million, EUR 233 million) at today’s exchange rate.

Two years later the same parties founded a company, B, and bought the supermarket Iceland at triple the original price, approximately ISK 100 billion (USD 890 million, EUR 640 million), again with loans from the banks.

Investment group A made extensive profits, which were paid out as dividends.

In March 2008, Jóhannesson sold Landsbanki an eight percent share in the supermarket Iceland for ISK 11 billion. In July 2008 he sold a 15 percent share of the supermarket to Landsbanki and Glitnir for ISK 38 billion.

So the banks paid a combined sum of ISK 49 billion (USD 436 million, 312 million) for the shares in the store. The increase in stock value is approximately 74 percent.

In September 2008, Landsbanki lent ISK 50 billion to move shares in the supermarket Iceland from Haraldsson’s company Fons to the company Stytta. ISK 48 million were used to pay Fons’s debt to the bank, the remaining ISK 2 billion were not delivered.

Iceland supermarkets were valued at ISK 35 billion in 2005, at ISK 100 billion in 2007 and ISK 250 billion in 2008, judging by the trade that took place shortly before the collapse.

The resolution committees of Landsbanki and Glitnir are now looking into the trade with the stores with the assistance of specialized investigators. Parts of the investigation have landed in the office of the special prosecutor because of the banking collapse.

One of RÚV’s sources commented this is “the most complicated shitty plot” he has ever seen. It is suspected to have been one giant illusion and market abuse staged to suck money out of the banks.

These allegations are rejected by Jóhannesson. “Since [the supermarket] Iceland was bought in 2005 it has paid Icelandic investors, including Landsbanki Íslands, approximately 67 billion krónur in dividends. In spite of that, the company’s shares are valued at 200-250 billion today but Landsbanki Íslands’s resolution committee recently rejected an offer to the company worth 1 billion pounds. I dare to state that this asset is the most valuable asset of the old banks and will pay almost a third of Landsbanki’s Icesave hole. No one will lose out on this investment, because Iceland [the supermarket] is among the most valuable privately-owned companies in Britain,” he wrote in his statement.


Landsbanki Accounants (PCW!!) Gave the Wrong Picture

  • fight theft
  • 10/10/08 28/05/13
  • a depositor
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  • Fri, 10/12/2010 - 20:37

In today's IcelandReview:
http://www.icelandreview.com/icelandreview/daily_news/?cat_id=16539&ew_0...

( I wonder what the Kaupthing investiations form Eve Jolly are going to find...?)

The accountants of the defunct Landsbanki Bank approved false accounts, according to a new Norwegian report conducted on behalf of the Office of the Special Prosecutor at the initiative of Eva Joly, the Special Prosecutor’s consultant.
The Norwegian experts state that the settlement of accounts in 2007 did not give the accurate picture of the bank’s situation and that Landsbanki used deceit and trickery to make it look better, ruv.is reports.
Individuals who were obviously connected appeared not to have any connection in the bank’s accounts, collateral for loans were of poor quality, risk was seriously underestimated, accounting documents sporadic and false profit fabricated, the report reveals.
A complicated web of companies in tax havens and offshore accounts made sure that majority owners, father and son Björgólfur Gudmundsson and Björgólfur Thor Björgólfsson, had the complete power of the bank.
In fact, the bank is said not to have fulfilled its operational permit at the end of 2007. Landsbanki should have, and Glitnir Bank too, have sought assistance from the Financial Supervisory Authority.
According to the report, Landsbanki’s accounting firm PricewaterhouseCoopers repeatedly confirmed the bank’s capability by signing settlement of accounts and with special declarations.
With confirmation from the accountants, Landsbanki issued commercial papers and collected deposits, among other means through the Icesave savings scheme in the UK and the Netherlands.
From spring 2008 to September 29, 2008, a few days before the banking collapse, ISK 260 billion (USD 2.3 billion, EUR 1.7 billion) had been deposited into the Icesave accounts in the Netherlands, which is now part of the debt Icelandic, British and Dutch authorities have been negotiating on.
If PricewaterhouseCoopers had given the right picture of Landsbanki’s position in 2007, that debt never would have existed, the report concludes.
Its authors point out that possible violations committed by accountants in this case could result in imprisonment of up to two years.
PricewaterhouseCoopers in Iceland said they wouldn’t comment on the report as they hadn’t read it yet but emphasized that their work methods were strictly professional.


PWC the Conspirators

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P is for Perverted Parasites
W is for Worthless Wa**ers
C is for Criminal Conspirators
Here is an interesting article in Forbes today:

Is PwC Conspiring To Evade Liability For Frauds In Iceland and India?
Dec. 14 2010

http://blogs.forbes.com/francinemckenna/2010/12/14/is-pwc-conspiring-to-...

By FRANCINE MCKENNA

“For Assange, a conspiracy is something fairly banal, simply any network of associates who act in concert by hiding their concerted association from outsiders, an authority that proceeds by preventing its activities from being visible enough to provoke counter-reaction.”
From Julian Assange and the Computer Conspiracy; “To destroy this invisible government”
The 2nd largest global auditing firm, PricewaterhouseCoopers (PwC), faces significant challenges to its ideal of a “vigorous global network structure” that has “the flexibility to operate simultaneously as the most local and the most global of businesses.”
Pending litigation and new claims of negligence in the audits of failed Icelandic banks Glitnir and Landsbanki, (the Icesave internet deposit account scandal), as well as ongoing investigations and litigation regarding the fraud at audit client Satyam in India, shine a spotlight on how the firm manages collateral damage from “local” issues.
PwC, “is alleged to have missed numerous warning signs about the state of Iceland’s banks long before they collapsed in 2008, according to a leaked investigation that exposes widespread irregularities among the doomed lenders. The findings were made by a team of international investigators in reports commissioned by the Icelandic special prosecutor who is probing possible criminal wrongdoing before the bank crash.”
Julian Assange gave an interview this past February to NPR’s On The Media about Wikileak’s role in the disclosure of secret documents about Kaupthing:
JULIAN ASSANGE: On July 31st, 2009, we released the largest bank in Iceland’s secret loan book to the public. And the next day, the national broadcaster, R.U.V., or RUV, the BBC equivalent, tried to make the contents of that loan dossier their main news item for their 7 p.m. news. But only five minutes before the news was to go to air, an injunction landed on the news desk, preventing them reporting the contents of that loan book.
BOB GARFIELD: But RUV did manage to get around it by using the period it had intended to devote to the story about the banks to showing images of your website, Wikileaks.
JULIAN ASSANGE: So, this had the effect of directing the entire Icelandic population to the primary source document itself.
Wikileaks subsequently also disclosed documents about Icesave and Landsbanki.
PwC’s Satyam scandal broke in January 2009 when the CEO of their audit client Satyam admitted publicly to a massive fraud. After the two PwC partners responsible for the Satyam audit were thrown in jail, PwC global leaders visited India numerous times, claimed to be victims themselves, made several appeals to the Indian media including trying to squelch my reports, set up an internal “advisory board” with foreign partners, and reorganized more than once.
They talk like they’re already past the worst of it.
In October, Mahindra Satyam, the successor company to Satyam, disclosed that the US SEC had issued a ‘Wells Notice” warning of a potential civil suit against the company “alleging fraud and other violations and seeking permanent injunctions and monetary relief”. The SEC has visited India several times. The notice was mentioned as part of Mahindra Satyam’s financial restatement disclosures. The company is facing a multi-million dollar class action lawsuit in the US.
All three – Glitnir, Satyam and Landsbanki – were felled by non-existent controls over related party transactions and blatant misstatements of asset and liability balances. Those misstatements were covered-up via forged documents that helped to further the frauds for the benefit of insiders. Each of the three failed Iceland banks — Kaupthing, Landsbanki and Glitnir — had loaned large sums to their biggest shareholders on favorable terms.
The pattern of behavior by PwC and their tolerance for illegal behavior by their clients is unmistakable.
All of the largest global public accounting firms use a “global firm” legal construct to simultaneously project a global brand image while attempting to shield the rest of the member firms from liability in the event one of them runs into trouble. PwC’s global firm, PwC International Limited, is an artificial vehicle used by the strongest member firms to control and potentially exploit weaker ones, all under the guise of improving quality and seamless delivery to multinational clients.
They feel the pressure of globalization. Client expectations for cost effective, seamless service delivery have grown. They are consolidating member firms into regional coalitions and operating entities, some of which share both risks and rewards across borders. But now those firms are more broadly vulnerable to both regulation and litigation when any local entity, now part of a large cross-border group, screws up.
The actions taken to minimize harm to the “network” when a scandal occurs, an audit failure happens, and a “local” issue is found to have international implications are starting to look like a conspiracy to defraud shareholders of failed firms and the taxpayers who often bail them out.
We’re structured as a network of member firms, connected through membership in PwC International Limited. PwC member firms operate locally in countries around the world. But by working together, member firms also comprise a vigorous global network. The member firms are linked together through membership in PwC International Limited (PwCIL), a UK membership-based company…. The unit of organisation most critical to our success is also its smallest and most fluid: the client engagement team. Much of the decision-making authority relating to how client needs are met rests with engagement teams.
How we are structured, pwc
Julian Assange described the United States as essentially an authoritarian conspiracy. He believes, “the practical strategy for combating that conspiracy is to degrade its ability to conspire, to hinder its ability to “think” as a conspiratorial mind.”
…Information flows from conspirator to conspirator. Not every conspirator trusts or knows every other conspirator even though all are connected. Some are on the fringe of the conspiracy, others are central and communicate with many conspirators and others still may know only two conspirators but be a bridge between important sections or groupings of the conspiracy…”
The global public accounting firms have organization and process flow charts that purport to document governance structures and communications protocols within the network structure. The source of authority within the networks has been mistakenly attributed, by some, as the international firm and its administrative head. However, the true source of authority at any point in time only uses these structures as conduits for the leaders of the dominant member firms to exert control over weaker firms. Those leaders benefit from whatever rewards they can accrue during their tenure while leaving medium and longer-term problems and potential liabilities for future leaders to deal with.
The dominant member firms in the PwC network, as evidenced by the current membership of their Network Leadership Team, are the US, UK, China, and Germany. But any particular individual leader is not as important – their terms are fairly short by corporate standards – as the economic dominance of a country or regional bloc. The UK, for example, dominates Ireland and Scotland and some practices in the Middle East, as well as having historical, cultural and now economic ties to Australia and India via a new joint venture in India with the US and Australia.
Icesave redemption, a Financal Times editorial: There is no disagreement that Iceland’s deposit insurance fund is liable for UK and Dutch Icesave deposits. But it was utterly ill-equipped to deal with the collapse of one of Iceland’s largest banks – let alone all three…The Netherlands and the UK will keep Iceland’s taxpayers hostage until they recover their outlays in full. This is a pity. It encourages the current fad for furnishing banks with unlimited sovereign guarantees.
The failures of the largest financial institutions in the US, UK, and Europe as well as the failure of industrial firms during the prolonged crisis have an impact beyond their home countries. The failure of the Irish economy, for example, presided over by the auditors of Anglo Irish (EY, also auditor to Lehman), Allied Irish (KPMG), Irish Nationwide (KPMG) and the Bank of Ireland (PwC) has had significant implications for the global financial system and global economy.
“…while an organization structured by direct and open lines of communication will be much more vulnerable to outside penetration, the more opaque it becomes to itself (as a defense against the outside gaze), the less able it will be to “think” as a system, to communicate with itself. The more conspiratorial it becomes, in a certain sense, the less effective it will be as a conspiracy. The more closed the network is to outside intrusion, the less able it is to engage with that which is outside itself.”
The global network structure of the largest public accounting firms sells a brand image of strength, confidence, and cross-border seamless service delivery. It delivers, when pressed by crises, a fragmented and paranoid conspirator’s version of limited liability, blameshifting, and abdication of responsibility for negligence or, worse, aiding and abetting of fraud on a global scale.


more

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..and yet more re: Good Ol' PWC

  • fight theft
  • 10/10/08 28/05/13
  • a depositor
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  • Sun, 12/12/2010 - 19:10

Another story on how their negligence ruined the lives of thousands around the world - may they be sued to oblivion to the point that PWC no longer exists.

P stands for Parasites
W stands for Worthless *ankers
C stands for Criminal...

Here's today’s report from The Financial Times
ed: December 12 2010 18:07

PwC accused of negligence in Iceland
By Andrew Ward in Stockholm

PwC, the international accountancy group, is alleged to have missed numerous warning signs about the state of Iceland’s banks long before they collapsed in 2008, according to a leaked investigation that exposes widespread irregularities among the doomed lenders.

The findings were made by a team of international investigators in reports commissioned by the Icelandic special prosecutor who is probing possible criminal wrongdoing before the bank crash.

EDITOR’S CHOICE
In depth: Icelandic economy - May-31Iceland strikes new deal over failed bank - Dec-10Growth returns to Iceland after two years - Dec-07Iceland’s currency route closed to Dublin - Nov-18Agreement near on new Icesave deal - Nov-16Icelandic paralysis sparks protests - Oct-06The studies found that Landsbanki and Glitnir, two of the failed Icelandic banks, had “grossly overstated” their financial strength, hidden large risk exposures and failed to disclose the full extent of lending to the banks’ owners and other related parties.

The banks were already in deep trouble at the end of 2007.

It is claimed that PwC showed “negligence” in failing to spot financial misstatements that should have led to the banks losing their operating licences, according to the reports, seen by the Financial Times.

Instead, the banks stepped up their deposit-taking in 2008 – including billions of euros deposited by British and Dutch customers in Landsbanki’s Icesave online accounts – in a desperate bid to avoid collapse.

The reports, prepared by French and Norwegian experts who have been supporting the Icelandic criminal inquiry, argue that losses from the eventual crash would have been reduced had PwC not given its endorsement to the faulty accounts at the end of 2007.

“The audit work was below acceptable standards in important areas,” said the investigators.

A spokesman for PwC declined to comment on the findings, but said the company stood by its audits.

“PwC Iceland is very happy to co-operate with the prosecutor’s ongoing inquiries and is confident about the quality of the audits it undertook of Glitnir and Landsbanki,” he said.

The reports claimed PwC should have recognised that both banks had broken banking rules by lending more than 25 per cent of capital to each bank’s main owners – Björgólfur Thor Björgólfsson of Landsbanki and Jón Ásgeir Jóhannesson, of Glitnir, and related parties – without declaring the exposure.

The investigators claimed PwC was aware of risks to some of Landsbanki’s biggest loans that should have resulted in impairments that would have cancelled out much of the bank’s 2007 profits.

International creditors are still battling to salvage some of their billions of dollars of credit extended to bankrupt Icelandic banks, while the UK and Dutch governments struck a deal with Reykjavik last week to recover about €4bn ($5.3bn) of lost Icesave deposits.
Copyright The Financial Times Limited 2010. You may share using our article tools. Please don't cut articles from FT.com and redistribute by email or post to the web.


... a short additional note to my post on the FT article below

  • fight theft
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  • Sun, 12/12/2010 - 19:18

re:"It is claimed that PwC showed “negligence” in failing to spot financial misstatements that should have led to the banks losing their operating licences,"

My guess is that they may have been bribed to keep things under the carpet by certain Bank directors. Fat Cats licking Fat Cats .....or were/are they all permeannatly "Out to (a boozy) Lunch......


Iceland Supermarket Scam

  • tonycBrisbaneOz
  • 12/10/08 31/05/13
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This sounds very much like a scheme that share traders used in 1920's Wall Street. A group of wealthy insiders would trade shares amongst themselves bidding up the price. When the price was high enough the last trader would sell his shares to the public.

Regards, TonyC


Kaupthing Executives Will Probably Refuse to Pay Fine

  • glen07
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http://icelandreview.com/icelandreview/daily_news/?cat_id=16539&ew_0_a_i...

Iceland Review 17.10.2010

Kaupthing Executives Will Probably Refuse to Pay Fine

The former joint chief executives of Kaupthing, the failed Icelandic bank, are planning to reject the offer of a plea bargain from the Financial Services Authority, which would have seen them fined £35,000 each according to the Sunday Telegraph.
sigurdureinarsson_ipa
Sigurdur Einarsson. IPA Photo.

According to the Telegraph the regulator has been trying to negotiate a £35,000 fine for Sigurdur Einarsson and Hreidar Mar Sigurdsson, the former co-chief executives. The two men would have been able to pay the fine without accepting any liability for causing the bank's failure and gain immunity from any further prosecution.

FSA failed savers, claims ex-Singer chief Einarsson, who is based in London, and Sigurdsson, now a Luxembourg resident, are still considering whether to accept the fine, but it is believed likely that they will reject the offer and take their case to an FSA tribunal.

A source told the Telegraph: "They both still consider themselves completely innocent of any wrongdoing."

Kaupthing and its former directors are still facing separate inquiries from the Serious Fraud Office and Icelandic authorities over allegations of market abuse and excessive loans to related parties. Earlier this year, Einarsson was wanted by Interpol on suspicion of forgery, fraud and embezzlement. He subsequently returned to Iceland to face questioning.

"A £35,000 fine is appalling," said Tony Shearer, a former chief executive of Singer & Friedlander bank, which was bought by Kaupthing in 2006.

"How is this going to help the depositors who still don't have their money back? How is this justice for British taxpayers? And why should the FSA get any money when it was complicit in all this because it failed to stop what Kaupthing was doing?"

Shearer was always unhappy about the fact the Kaupthing took over Singer & Friedlander. Kaupthing did not let him keep his position.

Sigurdsson praised the FSA earlier this year for their professionalism and said that the Icelandic financial authority had never asked him about his part in the bank collapse. He was put in prison in Iceland in spring for about two weeks. Einarsson made a deal with the special prosecutor in Iceland that he would come to Iceland in August and testify in exchange for a promise that he would not be detained during his stay in Iceland.


Kaupthing pair to reject plea bargain

  • anrigaut
  • 19/10/08 30/10/09
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The Telegraph article is here:
http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/8068428/...

I made a comment as follows (note, if you go to the site, the whole thing is very slow to load and the comments arrive last - but they do eventually appear!):

Thank you Rowena for your continued coverage of this debacle.

Just for the record, the UK Treasury are not the only ones standing in line. Along with UK local governments and charities, several thousand retail depositors of Kaupthing's Isle of Man subsidiary KSFIOM, effectively brought down by the collapse of its sister bank in London because a significant part of their funds were deposited there, are still waiting too. Contrary to an apparently widely-held view among the UK public, the vast majority of those who lives have been devastated by this disaster are honest, hard-working, tax-paying British citizens, many of them living abroad and unable to open UK bank accounts because they have no current UK address. Around half of them were risk-averse savers who had originally deposited their savings with the offshore branch of The Derbyshire Building Society before it was sold to Kaupthing at the end of 2007. No-one asked their opinion on this disastrous transaction and they were unable to withdraw their fixed-term bonds without penalty (or even, around the time of sale, with penalty). Less than a year later, their savings had vanished. Two years on, just 51% has been returned via the liquidation.

Tony Shearer is quite right. In 2005, supported by other members of the Singer & Friedlander board, he told the FSA quite clearly that in his view the Kaupthing crew were not fit to run a British bank. How right he has proved to be. When is the FSA going to face up to its responsibility?


Tony Shearer

  • Lostinspace
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Re this Iceland Review.com story, Three cheers for Tony Shearer!

I was impressed with his evidence before the UK Treasury Committee last year - now again he has come out again with some spot-on comments. Too bad he's not running the liquidation!


contact for account record details at KSFIOM

  • sabi Star
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does anyone know an e-mail address for old account records for KSFIOM?
thanks


Iceland's Former PM Geir Haarde Taken to Court

  • glen07
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http://icelandreview.com/icelandreview/daily_news/?cat_id=16539&ew_0_a_i...

28/09/2010 | 17:04

BREAKING NEWS: Iceland's Former PM Taken to Court

The Icelandic parliament, Althingi, just passed a parliamentary resolution with 33 votes against 30 to take former Prime Minister Geir H. Haarde to High Court (Landsdómur) on alleged negligence in office in the events leading up to the banking collapse in 2008.

Former Prime Minister Geir H. Haarde. Copyright: Icelandic Photo Agency.

Parliamentarians are currently voting on whether to take the two other ministers who were accused of negligence in the Special Investigative Commission report of April 2010 to High Court as well, former Minister of Business Affairs Björgvin G. Sigurdsson and former Minister of Finance Árni M. Mathiesen.

Parliamentarians also voted on whether former Foreign Minister Ingibjörg Sólrún Gísladóttir should be taken to High Court; 34 voted "no" and 29 voted "yes".

Current Prime Minister Jóhanna Sigurdardóttir, who recently announced her disapproval of taking the former ministers to High Court, especially in the case of Gísladóttir, work voted “no” both in regard to Haarde and Gísladóttir.

UPDATE: Former Minister of Finance Árni M. Mathiesen will not be taken to High Court with 32 votes against 31, neither will former Business Minister Björgvin G. Sigurdsson, in whose case 35 MPs voted "no", 27 "yes" and one abstained


Good news, I'll be even

  • expat
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Good news, I'll be even happier when they get David Oddsson into court.


UK councils in Glitnir Bank court showdown

  • glen07
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UK councils in Glitnir Bank court showdown

http://www.icenews.is/index.php/2010/09/14/uk-councils-in-glitnir-bank-c...

Posted on14 September 2010.

Five British local councils and Oxford University are fighting to get their money out of the estate of Iceland’s failed Glitnir Bank – but the bank’s resolution committee does not want them to be classed as priority claimants. At least ISK 100 billion (USD 850.4 million) is at stake.

A large number of British local governments, organisations, charities and businesses invested with Glitnir’s UK branch before the banking crisis – and now a group of them have brought their case to the Reykjavik District Court. Six cases were brought to the court yesterday on behalf of Oxford University, Kent County Council, Norfolk County Council and others.

Car Rental Services in Iceland

All the cases have the same goal: to have their claims classified as priority deposits due for pay out immediately under the auspices of the emergency banking laws the previous Icelandic government introduced, RUV reports.

The laws classify depositors as priority claimants; and the Landsbanki resolution committee has recognised this distinction. But in this case with Glitnir, the amounts are very high and other claimants in the banks – notably other international banks and finance companies – are claiming the emergency laws do not count. That being the case, depositors would have only the same rights as every other claimant. So far claims on the old banks processed through the Reykjavik District Court have amounted to nearly 2,000 billion kron


There should be no way that

  • barrona
  • 17/11/08 31/05/09
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There should be no way that Iceland be allowed to join the EU until it pays off all its debts, and that includes the IoM, not just the UK.
In the absence of such settlement, to permit them to join would be a slap in the face to all depositors.


Former Iceland PM faces trial

  • arny
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In today's Telegraph


Here is the Telegraph article re Geir Haarde faces trial

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Former Iceland PM faces trial over bank collapse
http://www.telegraph.co.uk/news/worldnews/europe/iceland/7997855/Former-...
Icelandic lawmakers have concluded the country's former prime minister ought to be tried for "economic negligence" over the catastrophic failure of its banking system and currency.
By Rowena Mason
Published: 8:31PM BST 12 Sep 2010

Their report says that Geir Haarde and his colleagues ought to have realised the extremely serious nature of Iceland's financial problems more than six months before the crash Photo: REUTERS
A special investigation committee, known popularly as the Truth Commission, recommended that Geir Haarde, the former prime minister, stand trial, along with Björgvin Sigurdsson, the former minister of commerce, and Árni Mathiesen, the former minister of finance.
It found during an 18-month inquiry that the three men showed recklessness in their handling of Iceland's financial crisis, which brought down its three banks and crippled the currency in October 2008.

Related Articles
• Geir Haarde, profile of a prime minister
• Sketch: On the trail of Iceland's most wanted man
• Full statement by Iceland's prime minister
• Icelandic government falls
• They call it Gordon Brown's 'tragedy', but it's been a catastrophe for us
• Following up Baugur turns into a bit of a saga
The crisis also sparked a diplomatic row with Britain over the £2.3 billion bill for the failure of Icesave, an internet bank based in Reykjavik that offered high-interest rate accounts to UK savers.
Iceland's taxpayers must now foot the £2.3 billion bill for the first £22,000 in compensation to each British saver, as well as dealing with unprecedented economic austerity and 20pc lower salaries. The crash also left British councils, hospitals and universities £1 billion out of pocket.
Iceland's investigation committee proposed that the Nordic nation's parliament set up a special court, called the Landsdómur, to try the politicians under laws covering ministers' accountability.
Its report says that Mr Haarde and his colleagues ought to have realised the extremely serious nature of Iceland's financial problems more than six months before the crash – but claims they failed to act.
The committee concluded that officials "lacked both the power and the courage to set reasonable limits to the financial system".
Investigators said the billionaire owners of Iceland's banks – Kaupthing, Glitnir and Landsbanki – had an overly cosy relationship with political leaders, meaning the authorities failed to rein them in.
The recommendation to try the former ministers was supported by a five out of the nine lawmakers sitting on the commission, with opinions split down party lines.
Four right-leaning Independence Party politicians refused to back the recommendation that would see their former leader forced to defend his actions in court. Mr Haarde stepped down in spring 2009 amid mass protests about his role in the financial crisis.
Johanna Sigurdardottir, Iceland's left-leaning Prime Minister, called the report's conclusions "a serious accusation against our political system, our politicians, the parliament, stock market".
"It is a problem we must confront," she said, adding that the recommendation would have had more force if unanimous.
Iceland is still dependent on a $10 billion loan package led by the International Monetary Fund.
It wants to join the European Union, but the accession process has been held up by the row with Britain over its £2.3 billion Icesave debt.


More IOM hypocrisy

  • expatvictim
  • 10/10/08 01/11/10
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  • Sun, 29/08/2010 - 15:16

Seems the our 'friend'Mr Brown (the one on the IOM ) is singing a familiar tune only changing the chorus to suit his own ends - taken from a BBC web article concerning registration of Iranian ships in the IOM to avoid sanctions!

"Concerns were raised last month in the Manx Parliament but the island's chief minister Tony Brown maintained that an investigation had revealed no wrongdoing and he denied that the island had aided any breach of the sanctions.

"We have to be realistic we can't do any more, we shouldn't be expected to do any more."

He added: "Why should we shut down legitimate businesses.... we shouldn't be expected to take action the rest of the world won't." "

No further comment really needed !!!


Iceland opposition leader ramps up pressure on spcial prosecutor

  • glen07
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http://www.icenews.is/index.php/2010/08/16/iceland-opposition-leader-ram...

Iceland opposition leader ramps up pressure on spcial prosecutor

Posted on16 August 2010.

The head of Iceland’s Independence Party has publicly criticised special prosecutor into the banking crisis, Olafur Th. Hauksson, for not having laid more charges than he already has. Bjarni Benediktsson said that public impatience is understandable.

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Benediktsson said on Bylgjan radio that he can understand impatience at the fact that more charges have not been laid against those responsible for the banking collapse in autumn 2008. He said that expectations have been raised several times and then dissipated slowly as nothing actually happens.

He said that he read in the papers last week that the special prosecutor expects to be able to lay charges in the near future; adding that public impatience is understandable and it is important to see some solid action soon.