Top Leaderboard, Site wide
September 1, 2014
Truthdig: Drilling Beneath the Headlines
Help us grow by sharing
and liking Truthdig:
Sign up for Truthdig's Email NewsletterLike Truthdig on FacebookFollow Truthdig on TwitterSubscribe to Truthdig's RSS Feed

Newsletter

sign up to get updates


A Market Basket of Dignity






Truthdig Bazaar

A Hologram for the King

By Dave Eggers
$25.00

more items

 
Ear to the Ground

Iceland Sends Four Bank Bosses to the Slammer

Email this item Email    Print this item Print    Share this item... Share

Posted on Dec 12, 2013
AP/Arni Torfason

A man walks past a branch of the Kaupthing bank in Reykjavik, Iceland, in 2008.

The onetime CEO of Iceland’s Kaupthing bank, one Hreidar Mar Sigurdsson, is going to jail for five and a half years for his part in his firm’s downfall—which also helped his country’s economy bottom out in 2008. He’ll be in good company.

Three other former high-level Kaupthing execs, including ousted board Chairman Sigurdur Einarsson, will join Sigurdsson for shorter stints in prison for aiding in the cover-up of a sham deal with a Qatari financier that sank the firm late that year.

Although the BBC pointed out Thursday that the foursome’s punishment amounts to “the heaviest sentences for financial fraud” in the country’s history, it represents a relatively breezy penalty compared with the mass-scale wreckage that ensued.

Still, it adds up to many more days behind bars than certain of their deserving American counterparts are likely to face. Here’s more from the BBC:

The court gave Olafur Olafsson, one of the majority owners three years and Magnus Gudmundsson the former chief executive of the Luxembourg branch, three and a half years.
None of them were in court for the decision but it is expected that they will appeal.

The four were also made to pay their own legal costs for the case, which amount to millions of pounds.

The special prosecutor, Olafur Hauksson, said the deal had influenced the bank’s share price. He also said the loans provided for the deal were illegal.

Mr Hauksson told the BBC that there was still another, bigger case against Kaupthing Bank ongoing, in which it is accused of market manipulation. It is due to come to court at the end of January.

 

—Posted by Kasia Anderson.

 

More Below the Ad

Advertisement

Square, Site wide

New and Improved Comments

If you have trouble leaving a comment, review this help page. Still having problems? Let us know. If you find yourself moderated, take a moment to review our comment policy.

 
Right 1, Site wide - BlogAds Premium
 
Right 2, Site wide - Blogads
 
Join the Liberal Blog Advertising Network
 
 
 
Right Skyscraper, Site Wide
 
Join the Liberal Blog Advertising Network
 

A Progressive Journal of News and Opinion   Publisher, Zuade Kaufman   Editor, Robert Scheer
© 2014 Truthdig, LLC. All rights reserved.