Executives at collapsed Iceland bank jailed for fraud

[lovuian]

Executives at collapsed Iceland bank jailed for fraud
December 30, 2012

http://au.news.yahoo.com/world/a/-/world/15732202/executives-at-collapsed-iceland-bank-jailed-for-fraud/

All three of the small North Atlantic island's top banks collapsed in quick succession in October 2008 due to big debts incurred during a rapid overseas expansion.

Glitnir was the first to fall after the collapse of Lehman Brothers caused international credit markets to freeze up.

A Reykjavik court sentenced Glitnir's former chief executive, Larus Welding, and former head of corporate finance, Gudmundur Hjaltason, each to nine months in jail, of which six months were suspended for two years. They had denied the charges.

Prosecutors said the two approved a loan to a company which owned shares in Glitnir so that the company could in turn repay a debt to Morgan Stanley.



I think 5 years in prison is very small considering the disaster that destroyed Iceland's economy
and yet they did convict the CHIEF EXECUTIVE

[KansDem]

1. Here we give them bonuses.

Lock 'em up and throw away the key! The Norwegian Sea comes to mind...

[lovuian]

2. I just saw that the one guy got 9 months

ya here we give them jobs in the Treasury

[phantom power]

3. we give them bonuses, and let them write our legislation

what could possibly go wrong?

[DrewFlorida]

4. I love this, if only we did this in the United States.

[lovuian]

5. We need regulation and to STOP Derivitives

It still continues even though we have seen the devastating results around the world

[itsrobert]

6. Wasn't Iceland warned about going over the fiscal cliff

or not to pay their debts, etc?

Looks like they are bouncing back better than ever.