500 million euros missing?

The Central Bank of Iceland loaned Kaupthing Bank 500 million euros last fall, just days before the bank was nationalised. The public and people in the financial industry expected the loan would actually save the banks. Morgunbladid newspaper and its best known reported Agnes Bragadottir claim that a big portion of the money went straing to Kaupthing Luxembourg and from there into secret Swiss bank account under the control of Kaupthing bankers like Sigurður Einarsson and Hreidar Mar Sigurdsson. Even some others could be involved.

The Icelandic PM Geir H. Haarde with the Central Bank decied to loan Kaupthing the money for a few days only in order to meet the demands of the British financial regulators and other parties within the British government because of the financial situation of daughter company Kaupthing/Singer & Freidlander in the UK.

The money was never returned, and the bank was nationalised a few days later.

This is to us here in Iceland… “Nothing new in that sense…”

But… the interesting thing about this story is that it is about 6 months to late. It is incredible that the local media hasn´t reported on this matter in any serious manner. Morgunbladid has been called bias, and correctly so as it has always supported The Independence Party vigurously. Mrs. Bragadottir seems unable to mention Bjorgolfur Thor and is David Oddsons (ex PM and Central Bank CEO) media moutpeice.

At the time of the loan, the word was that Kaupthing was the only bank that could be saved, Landsbanki and Glitnir considered doomed. Our sources contradicted those stories before the economic collapse. Kaupthing was the bank that was just as likely to go down. Then the news of the loan emerged and people within the financial sector were puzzled. Then the whole system collapsed people wandered where did the money go? Why loan the bank 500 million euros if it was already known that the bank would not survive?

It took the media 6 months do ask the question. The former government ministers who allowed this have not said a word. Nobody seems to see anything wrong with this.

This is by some believed to be pure spin. As soon as news about Landsbanki Luxembourg is dissolved by the new Landsbanki appointed receiver. The Luxembourg company run by Bjorgulfur Thor and other Landsbanki bank managers. Then Morgunbladid hits back and the political partys moutpiece Agnes to the rescue, distracts the media with a “shocker” from Kaupthing. Landsbanki always were the darlings of the Independence Party. Who ruled the nation for 17 years and created the environment needed to destroy the economy.


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