Icelandic news translated into English

November 3, 2008

50 billion debts written off for the highest chairmen of Kaupþing

Filed under: economy,Politics,Uncategorized — newsfrettir @ 8:38 pm
Tags: ,

Hreiðar Már Sigurðsson former chairman of Kaupþing and Sigurður Einarsson former board president.
The debts of the highest chairmen of Kaupþing after purchases of securities in the banks were written off just before the nationalisation of the bank. The amount is fifty billion króna.

Stories are rampant in the situation at hand in Iceland. One is that the highest chairmen of the out break banks, took sky high loans to buy shares in the banks, have had their loans written off to avoid them being bankrupt.

An e-mail has been spreading fast between people stating that the chairman of risk management of Kaupþing lost 2 billions and all his debts have been cleared up, as well as many other employees.

It states also that the finance supervision and persons of authority have reasoned the writing offs with that it would otherwise be impossible to staff the positions of the chairmen in the banks, because bankrupt persons are not authorized to work in banks.

The news room investigated today what is correct in this rumor that has caused the nation to be furious. And from what it seems, this is not a made up story. The newsroom has sources for that the administration of Kaupþing did shortly before the nationalization decided to write off the debts of the highest men in administration, loans that these individuals took to finance purchases of securities in the bank.

It is not clear how many have had this luxurious treatment, that their debts were swept off the table, but it is thought to be dozens.

Intense amounts have been written off this way, and according to the sources of the newsroom the accountants of the banks noticed that there was something not right in their books.

According to the sources of the newsroom it is not impossible that there will be legal suits against the old Kaupþing to have the write offs disallowed.

Chairman of the federal Financial Supervision did not want to be interviewed about the matter, but in an e-mail from the Financial Supervision it is stated that the FS did not specially approve the write offs related to the loans given to the employees of the banks.

The newsroom has today tried to contact the former and current chairmen of Kaupþing. Two current administrators for the banks confirmed that they had taken loans to buy shares in the bank. Both denied that their loans were written off.

(News Article by *noname*)
Original Article in Icelandic

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