Hvitsstadir, Kaupthing managers and a tale of cosy relationships

Posted 13/11/2012 - 12:18 by anrigaut

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2012-11-12 (All day)

"... An intriguing story that I have only recently unearthed regards an Icelandic company, Hvitsstadir, privately owned by five Kaupthing managers – Sigurdur Einarsson, Hreidar Mar Sigurdsson, Magnus Gudmundsson, Steingrimur Karason and Ingolfur Helgason – set up in 2003 to buy farmland next to a salmon river in Borgarfjordur, ca 150 km from Reykjavik. The entire Hvitsstadir enterprise was financed by loans from two small saving societies, Sparisjodur Myrasyslu and Spron, their business being heavily connected to and intertwined with Kaupthing. ..."

Comment by Tony Shearer:
"Once again Sigrún you have dug out something that the regulators, prosecutors and other authorities have failed to publish. Regularly more offences of the major banks are brought to light, such as money-laundering, sharp tax practices, mis-selling and so on. Because the UK authorities have chosen not to publish a report on what the banks (large and small) did get up to and what the regulators and the Treasury missed (or concealed), the lessons cannot be learned. So we are condemned to suffer when the same mistakes are made again in the future.
Taxpayers, depositors and management who did the right thing are all entitled to some vengeance and retribution. But we also need it so that the lessons are learned; and that those who think they can defraud taxpayers and depositors are aware that the consequences are serious. ..."