It would seem to be a presentation to the senior management of Kaupthing and covers loans made by that group including by their operations in Iceland, the United Kingdom and Luxembourg. Over 210 pages it lists something like 205 entities that owed more than €6bn. What is extraordinary about this document is that it represents such an unbalanced book of business. No sensible bank would have lent these sorts of amounts to such a very narrow customer base, drawn mainly from Iceland and including some very entrepreneurial characters.

In almost all cases the security described is inadequate and in most cases simply does not exist. According to the document, many of the loans are secured by shares of the lender, Kaupthing, which if right, is hardly security of any kind at all.

Most apparent is how inexact, imprecise and general is the language used to describe the loans and the possibilities that they might be recovered. The document ends with the strap line “Kaupthing Bank; Thinking Beyond”. Some thinking.

Tony Shearer, former Singer & Friedlander chief in the Telegraph

Related posts:

1. Telegraph: SFO intensifies Icelandic banking inquiry after Kaupthing leak
2. Guardian: Confidential Kaupthing corporate loan details leaked on the internet
3. Investigation into Kaupthing loans to UK retailer’s firm
4. Time: Report Questions Lending of Iceland Bank
5. Iceland Crisis on Swedish TV Show Kobra