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Icelandic Bank Chief In £500m Of Hot Water

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http://www.telegraph.co.uk/finance/newsbys...-hot-water.html

Just over six months ago, Björgólfur Gudmundsson was the chairman of a multinational bank, owner of West Ham United Football Club and listed as a billionaire on Forbes' Rich List. This weekend he has been declared bankrupt with debts of almost £500m (96bn Icelandic krona) − far outstripping any personal insolvency ever seen in the UK.

Mr Gudmundsson's liabilities are even greater than the £405m debts that weighed down Kevin Maxwell, son of Robert Maxwell, who is Britain's biggest bankrupt.

The Icelandic tycoon, who made his money through a Russian brewing business, was the biggest shareholder in Landsbanki, which failed last October leaving 300,000 British savers unable to access their money in its Icesave accounts.

Iceland still owes the British government £2.1bn in compensation.

"I now face almost complete lack of income as I am no longer in the employment of the aforementioned companies and earn now just the minimum wage," Mr Gudmundsson wrote in a letter to judges.

However, his son, Björgólfur Thor Björgólfsson, who was even richer than his father, has not been declared bankrupt. He is still in control of Novator, the investment company that owns a number of European telecoms businesses and is the biggest shareholder in the pharmaceuticals empire Actavis.

The news comes as the administrators of Landsbanki, the bank that Mr Gudmundsson chaired, appointed forensic accountants to scrutinise its accounts and transactions in the two years before it collapsed.

Landsbanki, along with Kaupthing and Glitnir banks, is already the subject of an investigation into "suspicions of criminal activity" in the Icelandic banking system.

A spokesman for the administration committee of Landsbanki said the appointment was standard procedure.

"If there is anything unusual found, it will be referred to the special prosecutor," he said.

Public feeling has not been on Mr Gudmundsson's side since the banking collapse – and it is not the first time that he has been unwelcome in Iceland.

His vast wealth originally came from shipping, but in the 1990s he was convicted of five minor bookkeeping offences carrying a 12-month suspended prison sentence. He had denied 450 charges relating to the 1985 collapse of a shipping company, Hafskip, and suggested that they were politically motivated.

After this episode, Mr Gudmundsson left for Russia where he founded the Avion brewery in St Petersburg.

If debt is wealth then the flip side when it all goes wrong is wealth is debt.

If you take the debt is wealth route your only wealthy as long as you can keep servicing your debts, over extend and the magic turns the wealth back into debt and your bankrupt.

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Where did the money go? Someone must have it.

If money creation is circular would anyone really have the money?

Perhaps the money on paper which gave the wealth never existed? Or someone somewhere is smoking a very big fat cigar laughing all the way to the bank?

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Where did the money go? Someone must have it.

The sellers of the original assets have some of it. Some of it never existed in the first place.

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Where did the money go? Someone must have it.

Wiki leaks have Kaputhings over 45Million loan book, available via a link here

http://icelandweatherreport.com/2009/08/ka...gainst-ruv.html

According to visir.is, loans made to the core investors of Kaupthing [the brothers Ágúst and Lýður Guðmundsson], and companies owned by them, amounted to some ISK 300 billion [uSD 2.3 bn / EUR 1.6 bn].

Robert Tchenguiz, a member of the board of Exista [owned by the brothers] received loans of some ISK 330 billion.

Ólafur Ólafsson, he who once flew in Elton John to perform at his birthday bash [and who is associated with shipping company Samskip], received a loan of some ISK 140 billion.

Companies associated with the Baugur family received a loan amounting to some ISK 320 billion at the current rate of exchange..

Basically, they gave it themselves and their friends...

Edited by Peter Hun

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Where did the money go? Someone must have it.

he made it all up. he issued some invoices and they didnt get paid, but counted the invoices as wealth, as any competant book-keeper will prove.

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£500M is just about what UK councils and charities have lost through their deposits in Glitnir and Landsbanki.

Maybe West Ham should sell up and pay them off.

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Guest spp

The whole western money system is bankrupt... time to WAKE UP!

Gordy is in total denial, so the U.K is in deep, deep trouble IMO!

If he was using all this debt to ensure the U.K was to be come self-sufficient

+ was buying up natural resources. We'd be in a much better position when TSHTF!

Either way we go bankrupt...so why not grab what we can on the way down!?

We are coming to the end of this debt ponzi scheme...prepare!

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I live in the US. I am not a citizen or PR status. I have a decent bank balance and credit cards with $100K limits but nowt on them. I could max them out, bugger off back to the UK and come back when the sh!t has left the fan and disappeared completely. Tempting is it not? In fact I could change my address and they would never catch up with me whilst not leaving the country. Aint debt wonderful sometimes?

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Guest Parry aka GOD
I live in the US. I am not a citizen or PR status. I have a decent bank balance and credit cards with $100K limits but nowt on them. I could max them out, bugger off back to the UK and come back when the sh!t has left the fan and disappeared completely. Tempting is it not? In fact I could change my address and they would never catch up with me whilst not leaving the country. Aint debt wonderful sometimes?

Be careful with that one-way extradition treaty.

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