NewsofIceland 26 Mar 2013: Former President of Kaupthing bank bought his own stock ...

Former President of Kaupthing bank bought his own stock  - Kaupthing lent the money


The Special procecutor in Iceland says that Hreiðar Már Sigurðsson, former president ofKaupthing bank, personally sold his own private company (Hreiðar Már Sigurðsson ltd.) shares for ISK 571 million ($4.4m, €3.3m) on August 6th 2008. Kaupthing bank financed the purchase in full and Sigurðsson's personal profit from the transaction was around ISK 325 million ($2.5m, €1.9m).

This is stated in the Special Prosecutor's charges against Hreiðar Már and eight other former employees of Kaupthing bank. The bank financed the loan so Hreiðar Már could buy his own shares.

The nine men were served their charges yesterday but the charges are for market manipulation and fraud. One part of the charge discusses how the accused and Kaupthing had vested financial interest in Kaupthing's stock prices. The charge states that the accused had personal interest in having the bank stock price as high as possible. Hreiðar Már did personally own any Kaupthing shares as he  transferred his stock assets and related liabilities, to his private companyHreiðar Már Sigurðsson ltd. in 2006. Shares that he bought after that time were also simultaneously transferred to his private company.

Two months after Sigurðsson's last transaction with his own personal company, the bank collapsed and a resolution committee from the Icelandic Financial Supervisory Authority took over the bank.

READ MORE about the matter here:

CEO and Chairman of Kaupthing bank charged with market manipulation


Hits: 1248