Iceland Jails Bank Bosses
Execs inflated share price before financial collapse
By Rob Quinn, Newser Staff
Posted Dec 13, 2013 12:15 AM CST
Kaupthing Bank brought Iceland's economy to its knees when it collapsed in 2008.   (AP Photo/Anja Niedringhaus)

(Newser) – Iceland has done something highly unusual with some of the bank chiefs blamed for the country's 2008 financial collapse: put them on trial and sent them to prison. Four former Kaupthing Bank bosses have been sentenced to between three and five years for market abuses relating to a deal where a Qatari sheikh bought a confidence-boosting stake in the bank with money that had been provided by the bank itself, the BBC reports.

Prosecutors said the loans, made soon before Kaupthing collapsed under massive debts, were made solely to boost the bank's share price, reports Reuters. The bank's former chief executive and chairman of the board received prison terms, along with one of its majority owners and the chief of its Luxembourg branch. The sentences are the heaviest Iceland has ever handed down for financial fraud, but prosecutors say a bigger case against Kaupthing is in the works. (In other Iceland news, police recently shot somebody dead—for the first time in the country's history.)

More From Newser
My Take on This Story
To report an error on this story,
notify our editors.
Iceland Jails Bank Bosses is...
1%
1%
1%
95%
1%
2%
Show results without voting
You Might Like
Comments
Showing 3 of 41 comments
uthink
Dec 16, 2013 8:07 AM CST
And why didn't we do this?
ThinkStraightAmerica
Dec 14, 2013 5:10 PM CST
Thumbs up to Iceland!! It's to bad for the people in the US their government is run by the special interest groups...Hey the US special Interest groups are owned by the US politicians....
bloggulator
Dec 14, 2013 1:49 PM CST
Way to go Iceland!!! Now how about the US gets tough on crime as well, instead of letting these corporate bankster cartel bosses get even richer from their crime sprees and remain at large, pillaging, looting and raping society with impunity? Fat chance - our lawmakers are gutless and the whole of the Washington DC - Wall Street complex is terminally corrupt.