Pending investigations
It seems that the Icelandic banks are turning into the most investigated banks in the world. The Office of the Special Prosecutor is conducting investigations, whereof the one into Kaupthing is clearly well underway. Market manipulation and breaches of fiduciary duty in the other banks are no doubt being investigated as well.
Glitnir’s resolution committee hired Kroll to poke around in the ruins of Glitnir. Recent cases against major shareholders and ex-managers of Glitnir are based on Kroll’s work. There is more to come, from the bank’s ResCom and winding-up committe. The findings of Kroll will be made public when it’s finished, probably in early summer.
The ResCom and the winding-up committee of Kaupthing has also organised an extensive investigation into possible malpractice at Kaupthing with a team from PriceWaterhouseCooper. The present OSP investigation is partly based on material from the ResCom. Glitnir is already bringing charges. The same is to be expected from Kaupthing. Their tactic will most likely be to bring a whole raft of charges at once.
Landsbanki has hired a team from Deloitte to investigate possible fraud. Nothing is known of possible charges. The feeling has been that the Landsbanki committees haven’t been as energetic in their investigations and little is heard of what’s going on there.
The Icelandic Financial Authorities, FME, are also investigating the old banks, in cooperation with the OPS. In Iceland there is a State Prosecutor. After the collapse of the banks the OPS was set up to investigate and process cases that might arise from the failed banks’ operations. The OPS deals with cases of eventual criminal behaviour. The administrators of the failed banks act in order to recoup assets.
In addition to Icelandic investigation the UK Serious Fraud Office is investigating Kaupthing. The banks all had important operations in Luxembourg – the question is if authorities in Luxembourg will make any move towards investigation.
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