http://icelandweatherreport.com/2009/07/kaupthing-bank-dishes-up-yet-another-scandal.html
Kaupthing bank dishes up yet another scandal
Much as I would love to focus solely on these gorgeous summer days and forget all the dreariness that weighs upon this nation like a thick blanket of tar, no self-respecting chronicler of the meltdown can avoid mentioning the latest corruption scandal at old Kaupthing bank.
We already know that Kaupthing “loaned” some ISK 500 billion [USD 4 billion] to its largest owners and their affiliates just days before the bank collapsed last October. Now it has transpired that Kaupthing’s chief lawyer Helgi Sigurðsson received a bullet loan of ISK 450 million [USD 3.5 million] from the bank. This information was disclosed by Icelandic paper DV two days ago and Sigurðsson subsequently resigned from the bank, issuing a statement that read: “In light of the repeated and misleading discussion concerning my involvement in loans made to employees of Old Kaupthing, I consider it clear that the needed calm cannot be created around my work for the bank.”
Ah, I see. He is forced to resign because everyone keeps pestering him about those few bob the bank slipped him when nobody was looking. Glad he’s taking it like a man, though, and – you know – putting the bank’s best interests first. [*snort*]
Anyway, bad as that is, it pales in comparison to the nearly ISK 900 million [USD 7 million] loan awarded to one Kristján Arason, ex-head of the bank’s corporate division, who just happens to be the husband of Þorgerður Katrín Gunnarsdóttir, currently vice-chair of the Independence Party, who at the time of the collapse not only held that position [NB: at the time the IP was the largest and most powerful party in the country - and incidentally, according to the latest opinion polls it is the largest party again] but was also Minister of Education, Science and Culture. Oh, and sport. Which is why she used around ISK 3 million of taxpayer’s money to travel to Bejing with her husband to attend the Olympics last August. Guess he was too strapped for cash to pay his own way.
Outraged yet? – Wait, wait … it gets better. Immediately after the collapse, the bank planned to write off all personal responsibility for the loans it had awarded to its employees. That’s right – they got the loans [very often to buy shares in the bank - which pushed up share prices] but when it all went tits up [pardon my French] they got to walk away scot-free.
According to latest reports, the liquidation committee of the new bank has not approved that particular move – and if they have any sense of justice or decency, they won’t.
IT WAS ANOTHER GORGEOUS DAY
Took a long stroll with my father today through Fossvogsdalur valley in the centre of Reykjavík – an area I’m really not that familiar with, but which is pretty darn nice! Like me, he was away for a few days, and we were remarking how great it felt to get away from all the weight of the kreppa, however briefly … yet also how fundamentally good it is to live in Iceland and how good our quality of life is here, irrespective of the economic situation. Often in the blithe days of the Icelandic summer, all seems so perfectly well with the world, so sometimes the general situation in society these days just seems very unreal. Right now we have 13°C [55F] in the capital, and we’re due for some drizzle. The sun came up at 3.05 am, and set at 11.56.
We already know that Kaupthing “loaned” some ISK 500 billion [USD 4 billion] to its largest owners and their affiliates just days before the bank collapsed last October. Now it has transpired that Kaupthing’s chief lawyer Helgi Sigurðsson received a bullet loan of ISK 450 million [USD 3.5 million] from the bank. This information was disclosed by Icelandic paper DV two days ago and Sigurðsson subsequently resigned from the bank, issuing a statement that read: “In light of the repeated and misleading discussion concerning my involvement in loans made to employees of Old Kaupthing, I consider it clear that the needed calm cannot be created around my work for the bank.”
Ah, I see. He is forced to resign because everyone keeps pestering him about those few bob the bank slipped him when nobody was looking. Glad he’s taking it like a man, though, and – you know – putting the bank’s best interests first. [*snort*]
Anyway, bad as that is, it pales in comparison to the nearly ISK 900 million [USD 7 million] loan awarded to one Kristján Arason, ex-head of the bank’s corporate division, who just happens to be the husband of Þorgerður Katrín Gunnarsdóttir, currently vice-chair of the Independence Party, who at the time of the collapse not only held that position [NB: at the time the IP was the largest and most powerful party in the country - and incidentally, according to the latest opinion polls it is the largest party again] but was also Minister of Education, Science and Culture. Oh, and sport. Which is why she used around ISK 3 million of taxpayer’s money to travel to Bejing with her husband to attend the Olympics last August. Guess he was too strapped for cash to pay his own way.
Outraged yet? – Wait, wait … it gets better. Immediately after the collapse, the bank planned to write off all personal responsibility for the loans it had awarded to its employees. That’s right – they got the loans [very often to buy shares in the bank - which pushed up share prices] but when it all went tits up [pardon my French] they got to walk away scot-free.
According to latest reports, the liquidation committee of the new bank has not approved that particular move – and if they have any sense of justice or decency, they won’t.
IT WAS ANOTHER GORGEOUS DAY
Took a long stroll with my father today through Fossvogsdalur valley in the centre of Reykjavík – an area I’m really not that familiar with, but which is pretty darn nice! Like me, he was away for a few days, and we were remarking how great it felt to get away from all the weight of the kreppa, however briefly … yet also how fundamentally good it is to live in Iceland and how good our quality of life is here, irrespective of the economic situation. Often in the blithe days of the Icelandic summer, all seems so perfectly well with the world, so sometimes the general situation in society these days just seems very unreal. Right now we have 13°C [55F] in the capital, and we’re due for some drizzle. The sun came up at 3.05 am, and set at 11.56.
No comments:
Post a Comment