Jump to content
House Price Crash Forum
Sign in to follow this  
D.C.

Iceland: What Ugly Secrets

Recommended Posts

Iceland: what ugly secrets are waiting to be exposed in the meltdown?

Some highlights:

Kaupthing's loan book, which was leaked on to the internet last week, shows that around one third, or €6bn (£5.1bn), of its €16bn corporate loan book was going to a small elite of men connected to the bank's owners and management.

"Iceland got its regulations from the EU, which was basically sound," he says. "But the government had no understanding of the dangers of banks or how to supervise them. They got into the hands of people who took risks to the highest possible degree.

Officials have also questioned why loans to senior Kaupthing employees to buy shares in the bank were allegedly written off days before the collapse.

Information from Landsbanki's reports suggest that companies connected to the bank's board of directors received at least €300m in loans. It is also known that Landsbanki lent the chairman's son Björgólfur Thor Björgólfsson's company Novator significant amounts, but later claimed that it did not need to be disclosed since he was not a "related party".

KPMG in Iceland, which was meant to be conducting a forensic investigation into the collapse of Glitnir, had to resign when it emerged that its chief executive, Sigurdur Jónsson, was the father of the bank's biggest shareholder.

Share this post


Link to post
Share on other sites

This was an interesting post further down too!

Anyone?

A case was reported only a few weeks ago in the Evening Standard where a top partner in a top accountancy firm has been accused of abusing his positon by trying to sell a distressed asset of the bank he is administering, to his cousin, who happens to be an estate agent!

It is rumoured that the full force of the UK's "best" lawyers have been hired to place extraordinary pressure on the UK press not to publish anything further on this sensational story, a story that also involves allegations relating to "fee rigging" by the same accountants and lawyers. As with all of these cases there can be "no smoke without fire".

Edited by erranta

Share this post


Link to post
Share on other sites
It is rumoured that the full force of the UK's "best" lawyers have been hired to place extraordinary pressure on the UK press not to publish anything further on this sensational story, a story that also involves allegations relating to "fee rigging" by the same accountants and lawyers. As with all of these cases there can be "no smoke without fire".

Linky?

If true, I'd expect it to be in defence of UK interests. No, not us (the ordinary people), but someone ... ummm ... really important. In the same way they stood up against both our investigators and the 'merkins over the BaE / saudi royals case and insisted it can't be investigated.

As for KPMG walking out ... presumably someone with similar size and prestige would've been auditing the banks before collapse! Reminds me of the Enron collapse that took Anderson down, when my friend at KPMG (and previously at other big accountants including Coopers&Lybrand) said all the big firms had skeletons like that in their cupboards.

Share this post


Link to post
Share on other sites
Iceland: what ugly secrets are waiting to be exposed in the meltdown?

Some highlights:

Kaupthing's loan book, which was leaked on to the internet last week, shows that around one third, or €6bn (£5.1bn), of its €16bn corporate loan book was going to a small elite of men connected to the bank's owners and management.

"Iceland got its regulations from the EU, which was basically sound," he says. "But the government had no understanding of the dangers of banks or how to supervise them. They got into the hands of people who took risks to the highest possible degree.

Officials have also questioned why loans to senior Kaupthing employees to buy shares in the bank were allegedly written off days before the collapse.

Information from Landsbanki's reports suggest that companies connected to the bank's board of directors received at least €300m in loans. It is also known that Landsbanki lent the chairman's son Björgólfur Thor Björgólfsson's company Novator significant amounts, but later claimed that it did not need to be disclosed since he was not a "related party".

KPMG in Iceland, which was meant to be conducting a forensic investigation into the collapse of Glitnir, had to resign when it emerged that its chief executive, Sigurdur Jónsson, was the father of the bank's biggest shareholder.

And here we have it. The system is rotten through and through.

:lol::lol::lol::ph34r:

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   295 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.