Special prosecutor interrogates ex Landsbanki CEO

The special prosecutor has taken the former Landsbanki CEO Sigurjón Árnason and Magnús Ármann into interrogation. Magnús Ármann is one of the most famous front men in Iceland these days. Front man in the sense that he was technically bankrupt when some of the biggest players in the economic collapse used his name to transfer money and buy companies to hide their identity.

The case being investigated is the transaction between Landsbanki and the holding company Imon, owned by Magnús Ármann. Imon bought shares in Landsbanki three days before it went bankrupt for just over five billion ISK. This happened after Glitnir was nationalized. The transaction leaked out immediately and cause a lot of anger withing the banking sector among the regular bank and financial sector employees, since it was pretty obvious who was selling and why. The people selling where the top administrators of Landsbanki, people who got fired when the bank fell three days later and people who ran the bank under the government, and some still work there. landsbanki

According to our sources from inside the banking sector, this is in general terms called inside trading or a fake business deal, and Magnús Ármann used his name because he owed so much that he would never be able to pay, so for a hefty fee he used his name and company to transfer the assets of the Landsbanki elite to offshore accounts. This was so obvious since everyone knew that the bank was done for at this time.

According to DV newspaper Sigurjón Árnason took the decision to lend Mangús the money for the shares, but that is not the whole story. As said before this was done to get personal money out of the bank so that they Landsbanki elite would not loose it, like the general public would do, and did. The only collateral for the loan where the stocks themselves. It is called giving money away. No collateral, a deal the public simply cant get. Some people call this stealing, and that is not far from the truth to be honest.

DV indicates that this was a fake deal to raise share value, but the truth is that this was done to get money out, the bank was done for and everyone inside the bank knew it.

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