When the banks were privatized just after 2000, Landsbankinn was sold to the Samson group for 11 billion ISK. The official explanation was that the team of Bjorgolfur Gudmundsson, his son Bjorgolfur Thor and their business partner Magnus Thorsteinsson had the money and suficcient know-how.
The real explanation was that after the Progressive Party had gotten Bunadarbankinn (to become Kaupthing) into the hands of its own cronies, the Independence Party wanted to create a counter-weight with businessmen favorable to the party.
Team Bjorgolfur wasted no time in allowing the CEO of the Independence Party, Kjartan Gunnarsson to remain the chairman of the board and hiring party members in all sorts of positions.
But when it all ended in tears it emerged that the Bjorgolfur’s had not used their own money to purchase Landsbankinn, but they’d in fact borrowed money from Bunadarbankinn (Now Kaupthing) to buy it.
And they owe 6 billion ISK on the loan still.
And now they want to renegotiate a deal with the new Kaupthing whereas they receive a 40-60% remittance on the loan, i.e. only pay 3 billion out of the six they owe.
No wonder Kaupthing’s CEO, Finnur Sveinbjornsson and some of his staff has received threats since that news broke. Vilhjalmur Bjarnason, adjunct professor at the University of Iceland and the chair of the Association of Icelandic Investors says that if the deal will be done civil war will break out in Iceland.
Sigurdur Lindal, law-professor at the University of Iceland is afraid of the example being set if the father and son team is granted remittance while others are not.
One thing is for sure, everyone I know is waiting with their loan-papers in hand, ready for the time to come to either get the same treatment or else use them to torch the remaining pillars in this god-forasaken society.
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Robert Culfield
2 years ago
Father and son…what a team. “Hey fellow countrymen, here is some salt for your wounds!”
Prison is actually too good for these b******s!