Massive money transfers just before the banks fell

This has been known for a long time, but now there are some actual evidence that the bank managers of Glitnir, Kaupthing and Landsbanki transferred a lot of money from their own personal accounts just days before the banks collapsed.

According to RUV, the accounting company Ernest & Young has been going over the bank transfers before the collapse, has found some disturbing, but not surprising things in them.

1. Lárus Welding the ex CEO of Glitnir changed his name to Lárus Snorrason and is now a Harvard business school student, transferred almost all his money, around 318 million ISK. KPMG found the transfer before they had to resign from the case because of conflict of interest and possible accusations of massive fraud charges against them. Ernest & Young took over, but they cannot confirm that the money came from his account, but the transfer in question was made in his wife’s name and the amount was 325 million ISK, from Iceland to England. They recommend that the Financial Supervisory Authority (FME) do an investigative follow up on the case.

Bjarni Ármannsson the other former CEO of Glitnir transferred his 262 million ISK to Norway in a few separate transfers. The largest section was for 85 million ISK, done 23rd of September 2008, less than a week before Glitnir was nationalised. Most of the money was put into funds, mostly in Nordea Banki in Norway.

More individuals are under investigation for this kind of misuse of inside information. Einar Sveinsson a former member of the board transferred 170 million ISK from Glitnir to Norway on September 25ht. This report RUV has a part of, suggests that it is highly unusual for a member of the board to do this.


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