Sigrún Davíðsdóttir's Icelog

Two big market manipulation cases coming up in Iceland – updated

with 3 comments

The Office of Special Prosecutor in Iceland has brought charges in two large market manipulation cases – one against  Kaupthing managers, another against Landsbanki managers. Those charged re Kaupthing are, according to Icelandic media, are Kaupthing’s chairman Sigurdur Einarsson, CEO Hreidar Mar Sigurdsson, Ingolfur Helgason director of Kaupthing Iceland, Magnus Gudmundsson director of Kaupthing Luxembourg, Bjarki Diego head of lending, three so far unnamed employees in prop trading and one in retail banking.

From Landsbanki there are CEO Sigurjon Arnason, Elin Sigfussdottir and four traders. The charges have not been published yet.

Allegedly, these cases centre on how the banks themselves, through various channels, owned a large part of the banks’ shares, meaning that market movements did not at all reflect the reality. I expect the charges to come out later this week and will then write about these cases in detail.

So far, no large case has surfaced regarding Landsbanki although the SIC report mentions many interesting transactions related to that bank, as well as the other banks. Icelog has earlier reported on another large Kaupthing case, the so-called al Thani case (here is a link to earlier Icelogs on that case).

According to the SIC report, 74-80% of trades on the Icelandic Stock Exchange were generated by the three banks. According to Icelandic media, some well known cases are connected to the new charges, such as a company called Imon, allegedly used to influence Landsbanki shares. Here is an earlier Icelog where Imon is part of the story and gives an idea what has been investigated.

An interesting aspect of these cases is that the alleged manipulation started well before 2008. This is made very clear in the SIC report.

Follow me on Twitter for running updates.

Written by Sigrún Davídsdóttir

March 19th, 2013 at 10:03 am

Posted in Iceland

3 Responses to 'Two big market manipulation cases coming up in Iceland – updated'

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  1. If the market manipulation started well before 2008 then it might yet again draw into question the solvency of Landsbanki prior to 2008.

    This is a very important piece of information that has yet to be officially confirmed as far as I am aware. There has surely been enough time now to confirm from the banking records the true state of Landsbanki Is and Lux.

    We should be made aware the approximate date that the bank breached it’s conditions to trade.

    Nina Foster

    20 Mar 13 at 6:44 am

  2. There are many people wondering why Iceland appears to be staying shy of the huge LANDSBANKI multiple manipulations, mis-selling and so much more.

    The LANDSBANKI Luxembourg case has put Iceland in a bad light which means it is all the more important to forensically examine the shady corners many do not want exposed.

    ICESAVE has put LANDSBANKI and Iceland on a world stage and people have applauded the democratic, dignified way the Icelandic people have stood up and said NO to the Banksters and NO to the Government protecting the Banks and robbing from the people.

    Iceland is standing high and proud, as a nation who has stood up for JUSTICE and punishment for the wreckless and greedy people both Bankers and Politicians who have brought the decent, law-abiding world to its knees.

    Iceland puts London to shame!

    LUXEMBOURG is responsable for the LANDSBANKI EQUITY RELEASE SCANDAL which it blames Iceland for.

    This Equity Release Scandal will affect the future of Europe as it is a shameful abuse of the pensioners who had saved all their lives to own a family home.
    The abuse of the elderly is something to be ashamed of. Europe cannot be a place that allows the abuse of the elderly, by Bankers, Politicians and the very people who should be helping to protect them.
    Abuse of the elderly should not be tolerated, especially in the middle of Europe which prides itself in HUMAN RIGHTS.

    These are people who have brought up families,saved and have been seriously mis-sold a flawed product based on lies, manipulation of figures, over-estimations one minute and under-estimations the next.
    They have been harassed, bullied and psychologically tortured by a callous administration and judiciary who have not looked into any of the criminal allegations lodged against them as they continue to seize their homes and have even stooped as low as to attack the 2 lawyers who are defending them.

    It is not fair that Luxembourg should stay in the shade of scandal whilst Iceland is fully exposed to forensic examination by the world.

    Luxembourg has used Iceland in order to stay in the shade, hoping the bullying tactics used for years on these elderly victims will make them break or perhaps die, as 14 already have.

    If those responsable for what happened in LANDSBANKI are not brought to justice, I believe Iceland will be blamed for what Luxembourg wants to get away with and it will then be too late for Iceland to do the right thing.

    Iceland should stand for what it’s honourable people have fought for and set an example to the world.

    NO to financial terrorism and abuse of decent people by Banksters!

    George Ward

    20 Mar 13 at 8:25 am

  3. […] reported earlier on Icelog, the Office of Special Prosecutor has brought charges against managers of Kaupthing and Landsbanki […]

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