I’ve been trying to get my head around the controversy surrounding the head of Commercial Workers’ Union who also sat on the board of Kaupthing. It raises so many questions.
Apparently he approved of the bank letting their top managers off the hook by revoking their liabilities towards loans they had taken to buy shares in the bank. Shares that became worthless days later when the bank was nationalized, therefore saving the managers from bankruptcy.
He tried to rationalize that by doing so by saying that the other option would have been to let them sell their shares but “a sale by key management would have to be notified to the Stock Exchange and therefore could have led to massive panic in the market and pressure to sell from other stockholders.”
Isn’t what he is describing there massively illegal? If not then it should be.
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November 6th, 2008 → 6:39 pm @ Dadi
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