Four Icelandic bank executives jailed

[notorious bum]

http://www.rte.ie/news/2013/1212/492...utives-jailed/

An Icelandic court has sentenced four former Kaupthing bankers to jail for market abuses related to a large stake taken in the bank by a Qatari sheikh just before it went under in late 2008.

Weeks before Iceland's top three banks collapsed, Kaupthing announced that Sheikh Mohammed Bin Khalifa Bin Hamad al Thani had bought 5% of its shares in a confidence-boosting move.

A parliamentary commission later said the shares had been bought with a loan from Kaupthing itself.

A Reykjavik district court today sentenced Hreidar Mar Sigurdsson, Kaupthing's former CEO, to five-and-a-half years in prison.

Former chairman Sigurdur Einarsson received a five-year sentence.

Magnus Gudmundsson, former CEO of Kaupthing Luxembourg, was given a three-year sentence.

Olafur Olafsson, the bank's second largest shareholder at the time, got three-and-a-half years.

This is by far the largest case brought by Iceland's special prosecutor against former employees of Iceland's failed banks.

It was argued that the market had been deceived by information indicating that financing was coming directly from Mr al-Thani's own funds.

Special Prosecutor Olafur Thor Hauksson, who called around 50 witnesses in the case, said the loans granted by the bank had the sole purpose of boosting Kaupthing shares.

None of the bankers, now based in London and Luxembourg, were present today.

The estate of Kaupthing said earlier this year it had settled a dispute with Mr al-Thani but provided no details, saying only that it had discontinued legal proceedings.

After taking control of the banks, the government was forced to seek an International Monetary Fund-led loan to stay afloat, a programme the country exited in August 2011.

Economist/historian, Bill Still, throws a little history lesson in, as well.

[ronin sparthos]

3-5 years is a joke and won't deter more from pulling this shit in the future. It's better than the blowjob America has given its overlords after the collapse but hardly anything worth fist-pumping about.

[notorious bum]

Yeah, I agree. Looking forward to seeing them crank out some more in January though lol

[Sepukku]

Jamie Dimon should spend the rest of his life in prison, how are the effects of JPMorgan Chase's indiscretions (rigging utilities markets, foreclosing on soldiers illegally, etc) any less severe than what Bernie Madoff did? Both were exploitation of people illegally in the pursuit of financial game for self/company/shareholders/etc

[Niiro]

Also known as Capitalism.