Kaupthing Bank Creditor Information Update 14 April 2010

Category: Newsflash

All cases concerning Kaupthing in the Special Investigation Commission´s Report have been examined by Kaupthing's Resolution Committee

Data regarding dozens of cases delivered to the authorities

Following the publication of the Special Investigation Commission’s report, Kaupthing’s Resolution Committee and its employees have gone over and analysed the information in the report concerning Kaupthing to assess whether all questionable aspects of Kaupthing’s activities referred to in the report had been examined by the Resolution Committee. The conclusion was that all cases related to Kaupthing which are discussed in the report of the Special Investigation Commission have been examined by Kaupthing’s Resolution Committee.

As provided for by law, the main objective of the Resolution Committee is to maximise the recovery of assets belonging to Kaupthing Bank and its creditors. In those instances where the Resolution Committee has in the course of its work become aware of events which could give rise to grounds for suspicion of criminal behaviour, it is obliged by law to notify the competent authorities thereof. Since it commenced work on 9 October 2008, the Resolution Committee has co-operated extensively and successfully with the authorities and has turned over a large quantity of data concerning dozens of cases, which have been under examination by the authorities. These involve various transactions which in some instances amount to tens or even hundreds of billions of ISK. The examination by Kaupthing’s Resolution Committee has, for instance, been directed at lending to related parties and to the bank’s largest clients, extraordinary transactions and transactions with and through the bank’s subsidiaries abroad.

Kaupthing’s Resolution Committee has in all instances notified competent authorities immediately of events which could give cause for grounds for suspicion of criminal behaviour. It should be pointed out that the Resolution Committee is not obliged to seek such knowledge beyond what it acquires through the gathering of information in the course of its work.

Kaupthing’s Resolution Committee has provided those parties investigating events in the wake of the banks’ collapse, including the Special Prosecutor, the Financial Supervisory Authority, the Special Investigation Commission, the Director of Internal Revenue and the Directorate of Tax Investigations in Iceland, with all assistance requested in investigating cases. Furthermore, the Resolution Committee has willingly provided the investigators concerned with ready access to all its data and such information as has been requested. The Resolution Committee has responded to all queries and requests addressed to it by the above-mentioned parties and set up special facilities to facilitate their work.

 

The Resolution Committee has been assisted by leading experts in its inspection, including expert forensic auditors from Grant Thornton in the UK and legal counsel from the international legal firm Weil, Gotshal & Manges. These parties have very diverse and international experience of handling insolvencies and investigating cases of this type. The Resolution Committee has also offered investigators access to the information and data which it has gathered and compiled with the assistance of its foreign advisors.

In the autumn of 2008, Kaupthing's Resolution Committee engaged the international accounting firm PricewaterhouseCoopers (PwC) to carry out an in-depth examination of the events during the weeks immediately preceding the bank’s collapse. Their report on the conclusions of this investigation was delivered in December 2008 and was delivered to the Financial Supervisory Authority. In August 2009, Kaupthing's Winding-up Committee engaged PwC to investigate the actions of Kaupthing Bank up until the time of its moratorium and to focus especially, in close co-operation with Kaupthing’s Resolution Committee’s inspection committee, particularly on the possible rescission due to actions taken by the bank up to two years earlier, and to assess whether the bank was entitled to claim damages as a result of those transactions. The Winding-up Committee has already referred cases to the relevant authorities based on this investigation, and a number of rescission and other actions are under preparation and will be put into effect in the near future.

 

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