Kaupthing Boss bought London home at way-above value

  • sami
  • 10/10/08 31/05/09
  • a depositor
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Posted: Sat, 01/11/2008 - 07:53

This article is from (heaven forbid) the Sun. I can't believe I've resorted to reading a web page from the Sun, but I had no choice.

It appears Sigurder Einarsson of Kaupthing bought the property which had been sitting on the market for some time. Similar properties in the road are around 3 - 5 £m, so why would he want to pay more?

Was there some sort of back-hander going on? Still I don't necessarily believe the Sun...


"THE boss of an Icelandic bank bought a £10.5million mansion in West London — just months before his firm collapsed risking the savings of thousands of Brits.

Sigurder Einarsson, 48, and wife Arndis bagged the four-bed home at a price way over the odds.

And it was financed by his bank Kaupthing which has many Brits among its 30,000 shareholders.

Chairman Mr Einarsson paid £2.5million more than the asking price for a quick sale.

Last week his bank’s assets were frozen and investors’ stakes wiped out in the credit crash.

Yesterday it emerged two similar properties to his mansion in the plush street sold last year for £3,750,000 and £5,100,000.

The couple have since spent around £600,000 on renovations.

The house languished on the market for many weeks at an asking price of £8million.

But Land Registry documents reveal the price paid.

A source said: “No one round here can fathom why he would spend £10.5million. Houses on this street have been valued at around £2.5million.

“There must be a lot of investors in his bank who will be furious he splashed out such a huge sum when he must have known his own bank was struggling.”

One Kaupthing shareholder is TV chef Gordon Ramsay.

Stakes were wiped out when the bank went into receivership. About 800 jobs are now at risk at the failed UK arm, Kaupthing Singer & Friedlander.

The Treasury was forced to use anti-terrorist laws to seize its assets to ensure the stability of the UK financial system.

Last night Mr Einarsson’s wife would confirm only that the couple owned the house.

Kaupthing’s shares were still suspended yesterday as Iceland’s main stock index lost a massive three-quarters of its value.

It was the first chance investors had to dump stocks after a three-day freeze on trading. Shares in banks Glitnir and Landsbanki are also suspended. "

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Who did he buy from? do you

  • Captain Mainwaring
  • 11/10/08 31/05/09
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  • Sat, 15/11/2008 - 14:22

Who did he buy from? do you have the address? If a link can be proved - Oh, Christmas early.
land registry online is your friend.


Sigurder Einarsson's over priced West London home

  • tonycBrisbaneOz
  • 12/10/08 31/05/13
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  • Sat, 15/11/2008 - 03:17

Spending sprees with other people's money is fun... if you have no conscience.

Regards, Tony.


Kaupthing Boss bought London home at way-above value

  • manksman
  • 01/11/08 31/05/09
  • not prepared to answer
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  • Sat, 01/11/2008 - 16:45

It all depends on how much capital the man put into the deal, and how much the bank ie what would the loan to valuation (not the selling price) be, the mortgage if any has first claim, if a buyer wants to use his own money to overpay that is not a problem, but does seem strange for a "bank manager".


I think it needs to be investigated

  • sami
  • 10/10/08 31/05/09
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  • Sat, 01/11/2008 - 16:51

I really do think there is merit here, manksman, because it may add to our case and perhaps even show that our bank was being run by wasteful incompetents.


Kaupthing Boss bought london home at way-above value

  • Anonymous
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  • Sat, 01/11/2008 - 16:49

If I was a cynic I might think they were trying to move money out of the Bank!!


Seems like everyone knew - except the depositors

  • Elpasout
  • 10/10/08 31/08/09
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  • Sat, 01/11/2008 - 11:09

that the whole thing was going to melt down. Well at least you can't blame the Kaupthing boss for doing nothing (like HM Gov). He bought a big house on the firm!! :-)

I have added to the News section in case people missed this (I did) when the story first ran (15th Oct)


Can this be true?

  • bellyup
  • 10/10/08 09/01/10
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  • Sat, 01/11/2008 - 08:57

Surely if this is true is stinks like a two day old fish.
What a fishy nation - in more ways than one the Icelanders are turning out to be.


Stinks - quite agree - is the property in Kaupthing's name?

  • sami
  • 10/10/08 31/05/09
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  • Sat, 01/11/2008 - 09:46

I would question the Sun's accuracy, but I expect the property was indeed purchased by who they say.

The big question is ownership. The Sun claims it was financed by his employer, but that could be wrong - they could be talking in the general sense here.

I would like to know if the ownership of the property is in Kaupthing's name. It could well be. How can we find out?


This information was published a few weeks ago

  • dawes
  • 24/10/08 31/05/09
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  • Sat, 01/11/2008 - 19:19

In the Evening Standard I believe. It looks like a simple case of defrauding the bank, another Icelandic bank (Gltner?) is being investigated for fraud or something.


KaupBoss loan

  • joooojoooo
  • 10/10/08 n/a (free)
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  • Sat, 01/11/2008 - 11:33

sami
any loan extended on the property should be on the Land Registry document as a legal charge (just as any mortgage is noted). This information used to be available on the LR website - I don't know if it still is.


Mortgage in the Loan book

  • Alastair
  • 10/10/08 30/09/09
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  • Sat, 01/11/2008 - 11:21

I guess it is in the loan book of KSF UK - so that is at least 2mln that someone is going to have to take a hit on.

Anyone wish to report potentially fraudlent purchase to the Metropolitan Police?


We must follow this up

  • sami
  • 10/10/08 31/05/09
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  • Sat, 01/11/2008 - 12:18

I think we should follow this up, given the questionable state of the bank's finances over the past year.

Could someone in UK consider contacting the Sun to see if we can found out where the property is and in whose name it's registered?


Fraud squad?

  • bellyup
  • 10/10/08 09/01/10
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  • Sat, 01/11/2008 - 14:06

I think the fraud squad should be notified.


Fraud squad?

  • sami
  • 10/10/08 31/05/09
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  • Sat, 01/11/2008 - 16:03

I accept your point bellyup my friend, but it is reasonably common for companies to own property for their employees to occupy. I think the point in this case however, is that...

a) It has happened at the worst time in Iceland economic history and so how could they justify spending £10m on a London home for a director?

b) They paid 40% over value for it, leading to some questions of back-handers or plain stupidity. Yes, probably the latter, since Iceland's bosses have been too rich and stupid with money.

Nevertheless bellyup, maybe we should pass this on to 'diver' or someone else in the London team for an opinion?


Who owns what?

  • Peasant
  • 10/10/08 31/05/09
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  • Sat, 01/11/2008 - 16:50

Wife says they own it. Does she know? Or, are they tenants of the bank?
If the bank is the landlord and it comes to a fire-sale, who's in the best position to make an offer at a knockdown price?


Kaup Boss

  • Mrs Not Too Happy
  • 12/10/08 31/05/09
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  • Sat, 01/11/2008 - 11:43

If that's how they were running the bank then god help us.

I never thought I would see the day when I could support the arguement for nationalising the banks. I've really had my eyes opened over the last few weeks.