Economic Disaster Area » Bjorgolfur Gudmundsson

The IceSave Memorial: How We Got To Where We Are

Dadi — Wed, 06 Jan 2010 10:09:51 +0000

The idea of an IceSave memorial is a great one. So here is a homage to the people who got us IceSave.

As Prime Minister and Finance Minister, David Oddson and Geir Haarde privatized Landbankinn into the hands of Bjorgolfur Gudmundsson, who had no experience in banking but had served a sentence for his part in the bankruptcy of Hafskip and made a mint in post-communist Russia. Half of the purchasing fee was borrowed from Bunadarbankinn (which became Kaupthing) and never repaid. Landsbankinn returned the favour for their Progressive Party counterparts.

Bjorgolfur Gudmundsson and his son, Bjorgolfur Thor wasted no time and appointed a host of Independence Party members to key positions in the bank. They also used the bank as their own personal piggy bank, borrowing billions upon billions to acquire publishing houses, newspapers, pharmaceutical companies, telephone companies to name a few businesses. Landsbankinn’s loans to connected individuals were way above anything which could have been considered as normal in banking. Or imagine Fred Godwin borrowing billions from RBS to buy Penguin, The Telegraph, Vodafone etc.

The father and son retained Kjartan Gunnarsson as the chairman of the board. Meanwhile he was also the CEO of the Independence Party. It was a cosy relationship. A few days before the Independence Party government approved a new law limiting the amounts of grants political parties could accept, 25 million ISK found their way from the bank to the party. A big chunk but still just a part of the pie as MP Gudlaugur Thor Thordarson’s finances have revealed.

The man who approved the huge grant was former youth officer of the Independence Party and then CEO of Landsbankinn, Sigurjon Th. Arnason. A new employee at Landsbankinn in 2007 recounted how when he started working there, Sigurjon’s friend from the Independence Party and mid-level manager told him about the “real organization chart”, which showed how things really worked if you wanted to get ahead in the world of Landsbankinn’s type of international banking.

The other CEO, Halldor J. Kristjansson had been the assistant of Progressive Party minister who turned billionaire through the privatization of Bunadarbankinn into Kaupthing. When financing the risky model that Landsbankinn like the other Icelandic banks were running, the bank came up with IceSave.

Alistair Darling is the finance minister of the UK. The UK allowed Landsbankinn to prey on the savings of the Brits when it should have been clear that the Icelandic Central Bank had no way of acting as a lender of last resort.

But neither did his Dutch counterpart and the Dutch National Bank do their homework. They allowed Landsbankinn to move in on the Dutch when one simple look at the Central Bank of Iceland’s foreign reserves should have told them not to.

They should have stopped it because this guy wasn’t going to. Jonas Fr. Jonsson was the CEO of the Financial Authorities in Iceland and an Independence Party member. His job safety depended on not rocking any boats.

And guess who was by then calling the shots at the Central Bank of Iceland?

New chairman of the Independence Party, wasted no time in using IceSave for the political gain of his party. By screaming from the top of its lungs the party has managed to divert attention from its own role in the economic collapse of Iceland. No other issues have been able to hold the spotlight, such as the several times larger bankruptcy of the Icelandic Central Bank under the management of David Oddson, a review of the bank privatization process or the finances of the political parties.

Of course, distinguishing the Independence Party from IceSave is a hell of a task. Thorlindur Kjartansson and Erla Osk Asgeirsdottir ran for Althingi in 2008 as the young, shining stars of their party. They had just come off their jobs at Landsbankinn where they were supposed to do market research into which other countries Landsbankinn could launch IceSave. If they are next in line to succeed on the party’s behalf then surely a diversion tactic is needed to cast the blame for IceSave elsewhere.

The smoke and mirrors game also suited the old ally of the Independence Party, the Progressive Party under new leader Sigmundur David Gunnlaugsson who has cried wolf from the top of his lungs on the IceSave issue. The Progressive Party has a long history of chasing easy votes. It was not hard to convince a large part of the Icelandic nation that it might not have to honour its obligations.

So the InDefence group was formed. Behind the group which sort of promised Icelanders who signed their petition that they would not have to pay the IceSave debt is a nice little group of Progressive Party members, such as economist Magnus Arni Skulason who had to resign from the board of the Central Bank earlier this year for trying to assist wealthy parties in by-passing the currency restrictions in place in Iceland. A trustworthy and honest group if you ever saw one.

And the unloved lame-duck president bought the hype.

Finally we can only have ourselves to blame. For not being more alert to people who had grown so accustomed to running the country that they considered it a birthright. For not being more critical until after the crash. We were too busy keeping our jobs, TV’s and our cars safe that we forgot our basic rights and liberties. The Icelandic people allowed this to happen by becoming oblivious to criticism and celebrating cronyism. And for not wanting to learn from what has just happened.

Obviously the government of the Social Democrats and the Left Greens approved the IceSave agreement at the end of 2009. But it is sort of ridiculous and evil even to blame the cleaning crew for the mess left behind from the party.

Isn’t it?

Former Bankers’ Threats & Gruesome Grip On Icelandic Society

Dadi — Fri, 11 Sep 2009 18:16:23 +0000

How tight was the grip Icelandic banks had on their society in the last decade?

Journalist Anna Kristine Magnusdottir tells of the death threats she received while she was working on a piece for DV in 2007. The story was about the mistreatment of children at a juvenile home at Kumbaravogur. Out of nowhere she got a phone call where an audibly upset man threatened her that he knew where she lived, what her car’s number was, what kind of make it was and that this story should not be published. Other people who had tried to spread these terrible lies about this nice old man (who ran the juvenile home) Kristjan Fridbergsson had been killed before.

Shortly thereafter Anna Kristine was grocery shopping when the cashier told her that her card had been declined as it had been reported stolen. The store intended to call the police but a nationally recognised woman stepped forward and paid Anna Kristine’s groceries and vouched that she was really the card’s owner (all debit and credit cards in Iceland also have a photo of the person on the back).

Anna says she had been scared enough to not run the story, she felt humiliated and didn’t think this sort of stuff could happen in Iceland. The story of Kumbaravogur was part of an extensive investigation DV made into the maltreatment of children in juvinile centers around Iceland decades ago and the paper was rewarded by the Icelandic Journalist Association for investigative reporting because of the series in 2007.

Kristjan Fridbergsson was Landsbanki CEO Halldor J. Kristjansson’s father. When she brought up that her card had been stolen with Bjorgolfur Gudmundsson, his assistant asked beforehand whether she was asking because of that connection.

Bjorgolfur himself has earned notoriety for threats and action. Last year, DV editor Reynir Traustason admitted to his tape-recording employee that he would not run a story because Bjorgolfur would ruin their paper. The Bjorgolfur’s were said to be thinking of buying the paper to shut it down because of critical reporting.

The fear might have been justified. When Gudmundur Magnusson wrote a book about the Thors family, which includes Thora Hallgrimsdottir, Bjorgolfur Gudmundsson’s wife and Bjorgolfur Thor’s mother, the publisher had the whole first edition destroyed. The book’s publisher was Edda Publishing, owned by…you guessed it, Bjorgolfur Gudmundsson. The book included a chapter on Thora’s previous marriage with American George Rockwell which was little known about in Iceland.

Rockwell is described by Wikipedia as “a Navy Reserve Commander (Naval Aviator) and founder of the American Nazi Party. Rockwell was a major figure in the Neo-Nazi movement in post-war United States, and his beliefs and writings have continued to be influential among white nationalists and neo-Nazis.”

Halldor Kristjansson has now moved to Canada to take up a position with an investment firm in the energy sector. Bjorgolfur Gudmundsson’s house of card has come down tumbling, but he has managed to leave large chunks of his debts with Icelandic taxpayers through IceSave. And probably has enough left through his son in the Caribbean or Cyprus to live in luxury.

Gangsta’s Paradise

Dadi — Wed, 19 Aug 2009 17:14:24 +0000

Did you ever think that you would be this rich?

Did you ever think that you would have these hits?

Did you ever think that I’d flash the nine?

And walk off with your shit like it’s mine?

I’ma keep stickin niggas until I’m livin’

Did you ever think that you would be this rich?

Did you ever think that you would have these hits?

Did you ever think that I’d flash the nine?

And walk off with your shit like it’s mine?

I’ma keep stickin niggas until I’m livin’

Lyrics by 50 Cent – How To Rob

Photo from Bjorgolfur Thor’s 40th birthday in Jamaica where the musician behind the album “Get Rich Or Die Tryin’” was the headline act.

The A-L Of The Icelandic Election

Bjorgolfur Bankrupt And Then Some

Dadi — Fri, 31 Jul 2009 21:44:00 +0000

Bjorgolfur Gudmundsson is bankrupt. His personal debts amount to 96 billion ISK, the largest individual bankruptcy in Icelandic history.

This is how highly leveraged you can get if you own a bank.

So now 66.66% of the people that were handed Landsbankinn by the Independence Party have become bankrupt. Magnus Thorsteinsson having been bankrupted to the tune of roughly 900 million ISK earlier this year.

Shouldn’t somebody look into the whole bank privatization thingy of 2003…shouldn’t they?

Bjorgolfur would like people to know that his wife herited their house from her parents and would like her to be kept out of discussions of his personal finances.

Fine by us, if he keeps his hands out of Icelandic business and commerce for the rest of his life.

PS: Updated 2.8.2009 – Apparantly Bjorgolfur´s bankruptcy is larger than any individual´s in the UK ever.

Top 10: Who’s To Blame For The Icelandic Crash

Dadi — Wed, 29 Jul 2009 10:42:55 +0000

Since Newsweek was pointing fingers this week with its “Who’s to blame” report, it only makes sense that Icelanders start extending their index fingers. For every Fred Goodwin, there is a Bjarni Armannsson and for every David Oddson…well there are actually few people who could have made as much mess in history as David Oddson. So here is the top ten, which actually holds a lot more than ten people, but then again inflation is still here.

1. David Oddson
He wanted all the praise so he has to accept the blame. Within 50 years of ridding itself of a foreign monarch, the King of Denmark, Iceland had something close to its own. He went about changing a closed, regulated society and throwing it onto the free market of everything. Unfortunately he wanted complete control of where the wealth and power was supposed to go. He could have become a JFK but ended up a George W. Bush. You can throw Political Science Professor at the University of Iceland, Hannes Holmstein Gissurarson into the mix with David as they are attached lips to butt anyways. Retired for now, supposed to be writing his memoirs. Quite a few dinosaurs and Independence Partyjugend would like to see a return to politics. One of incredibly many top Icelandic politicians to battle cancer in the last decade.

2. Halldor Asgrimsson
A Godfather of sorts to a Progressive Party Cosa Nostra which did not hesitate stealing the resources of Iceland in broad daylight. Hardly a visionary of any kind, but a dark lord of special interest who did anything to maintain the axis of power he built with the Independence Party. Thought he could become the emperor, but once on the PM throne he was ruefully exposed as a naked don of demons of greed and corruption. Would have sold Mount Esja if the right bid had come along. Retired after battling cancer. Family benefitted directly monetarily from the fishing quota system his party helped build and sustain.

3. Valgerdur Sverrisdottir & Geir Haarde
Every villain needs a trusty sidekick which is both scary in the lenghts it will go to please its captain but pitiful all the same. Valgerdur was the middle-woman when Iceland sold its soul at Karahnjukar and the person who made the privatization of the banks happen into the right hands. Her education at a Berlitz languague school probably made her most qualified. Geir Haarde was handed the atomic bomb with 10 seconds to go on the clock, which was somehow fitting as he’d been one of the chief engineers as a Finance Minister to David Oddson. Of course it was going to end up blowing in their face. Geir now battles a serious case of cancer. Valgerdur was appointed to head a committee by rival party minister Ossur Skarphedinsson, so don’t worry about the co-operative of politicians not taking care of each other.

4. Finnur Ingolfsson
When you are a simple Minister of Commerce and Industry one day and a humble Central Bank Governor the other, and then suddenly a billionaire after being handed a state bank through privatization, well then you just have to be either a brilliant businessman or an incredibly corrupt poltician who knows no shame. And Finnur Ingolfsson ain’t no brillant businessman. Is probably negotiating a nice loan-remittance for himself at the banks right now.

5. Bjorgolfur Gudmundsson & Bjorgolfur Thor
Bankrupt a shipping company, run a few risky and failing businesses, go to post-communist Russia and make a buck, get a loan from a newly privatized bank to buy another bank because you are acceptable to the Independence Party, line the bank’s top positions with the Party’s favorite sons and daughters, run it almost to the ground, start a shady pyramid scheme called IceSave, destroy the lives of your countrymen and then ask for a discount on your loans. Last year Bjorgolfur Thor said that he had acquired all money could buy and now he was most concerned about leaving a great reputation. Might qualify for any worldwide list of top ten disastrous businessmen. Are now being battered from all sides, which is not surprising as they owe more money than the population of Central America. Recently asked for a discount on the loan they took from Bunadarbankinn to pay for Landsbankinn in the beginning, probably challenging the world record for chutzpah. Will probably continue to live in luxury with the money they’ve got stashed away in tax-havens.

6. Sigurdur Einarsson (Kaupthing), Bjarni Armannsson (Glitnir), Hreidar Mar Sigurdsson (Kaupthing), Sigurjon Arnason (Landsbankinn), Halldor J. Kristjansson (Landsbankinn), Larus Welding (Glitnir)
CEO’s and chairman of the boards of the companies that built the smoke and mirrors of the “Icelandic Economic Miracle”. Middle-men in the transfer of Icelanders wealth into the pockets of a few chosen ones. Tax-evading enablers par-excellence who paid themselves a Croesian sum through bonuses and dividends that had no grounds in reality. You will find them as highly paid consultants today, as they are too well-connected to ever go to jail like you would.

7. Jon Asgeir Johannesson (Baugur), Hannes Smarason (FL Group), Palmi Haraldsson (Fons), Karl Wernersson (Milestone), Agust & Lydur Gudmundsson (Bakkavor)
Parasites of the business world whose magic revolved around leveraging everything through the roof, and making away with what owners equity they could find. It is easy to buy what you want with a loan when you own a bank. Shamelessly neuveu-riche, typical Icelandic car-salesmen who’d gone upscale. Were never favored by David Oddson which made them tolerable to a large part of the nation. Hiding abroad, investing their loot.

8. Olafur Olafsson
The money behind the Progressive Party, which he aquired through the Party’s connections and consent. Became a billionaire through close connections with Valgerdur Sverrisdottir and Halldor Asgrimsson who left no good morals unbroken in bringing Bunadarbankinn into his hands. Was the main player in a massive market manipulation swindle when a sheik from Kuwait was supposed to have shown his trust in Kaupthing with a 5% share purchase. Again, too connected to ever go to jail.

9. Kjartan Gunnarsson
You are the Independence Party CEO and on the board of state-owned Landsbankinn. It is privatized and you are still on the board. The whole bank is filled with party hopefuls. The bank introduces IceSave and deliberately ties the knots so that the Icelandic state is responsible if it goes bust. It does.

10. Ingibjorg Solrun Gisladottir
Could have offered a stark alternative to the disastrous regime of David Oddson’s Independence Party. And for a while she was harshly critical. But when things seemed rosier than ever during the “economic miracle”, she formed a government with the party she loved to loathe. If she’d let the Left Greens form the government instead in 2006, the economic crash would have happened under political explosions. Instead we got scared little mice running into cover as her party had become the second fiddler as the nation burned. Yet another one who’s having to fight cancer right now.

Honorable mention: Olafur Ragnar Grimsson
Hey Mr. President! We haven’t forgotten about you even if you seem to prefer being in hiding these days. An Icelandic president is supposed to unite the nation, support its people’s endeavors and protect its image. He is not supposed to be an on-call PR person for venture capitalists. Building his own dynasty, Olafur left a stain on a beloved institution. The first president to obviously honor greed as good. And that “You Ain’t Seen Nothing Yet” speech completes the icing on the cake on the Icelandic nation’s ridicule. Has mysteriously disappeared from the nation’s consciousness, another magical PR trick from him.

Fraudsters in Isolation – Arrests Finally Made In Iceland

Dadi — Tue, 28 Jul 2009 10:19:34 +0000

This should be big news. Today’s Frettabladid reports the following:

“Two young men, born in 1989 and 1990 who are suspected of massive financial fraud are being kept in isolation under arrest because of the seriousness of their case. This is revealed in the courts’ verdict at their hearing.

The men are believed to have drawn at least 50 million out of two limited companies and the State Housing Fund, by taking over the management of the companies amongst other things. As Frettabladid has reported before, more individuals are believed to play a role in the case. At the point of writing last night, more arrests had not been made.”

Now what did Eva Joly say about the judicial system of the west being designed to close up small time crooks and protect the largest ones?

The reporter and the court probably ain’t kidding either. How absurd is this the day after the revelations that the largest owners and top management of the Icelandic banks had taken their money away from the banks as they collapsed and hidden them in tax havens around the world?

How ridiculous does “the seriousness of their case” sound when it is clear that Landsbankinn’s owners lent themselves 114% of its equity when they were allowed only 25%?

How stupid is their isolation in comparison with Olafur Olafsson’s top man, Arni Tomasson sitting on the solvency board of Glitnir?

How mind-boggling is the case in comparison with Glitnir’s and Kaupthing’s market manipulation through Stim ehf. and the Al-Thani business?

How Jon Asgeir Johannesson and those who took over the Savings & Loans of Hafnarfjordur and milked its owners’ equity dry must smile onboard their yachts when they read about those that don’t get away?

Should a news report like that, made in context with what is taking place in society, make you laugh or cry?

The Rats Who Jumped Ship

Dadi — Mon, 27 Jul 2009 22:22:14 +0000

Every day brings a new queasy revelation in the country which the Germans now call Crisisland. Today I met someone who is leaving the country, relieved to get away from all the negativity that has infiltrated every thread of society. Another friend said he foresaw the future in the same way. Occasionally you will find a happy camper who is trying to keep head above water but the mood mostly turns grim once people get past the how are you’s.

Tonight Channel 2 and the State Broadcasting Channel reported that according to secret reports from Ernst & Young and information from the collapsed banks, billions were transferred to tax-havens such as Tortola, Luxembourg, Hong Kong, Bermuda, Cayman Islands and the British Virgin Islands by top management and owners of the doomed banks as they were being taken over by the state. As the Icelandic people stare the abyss of IceSave in the eye, it is infuriating to hear that Bjorgolfur Gudmundsson, Bjorgolfur Thor Bjorgolfsson, Magnus Thorsteinsson and Karl Wernersson transferred billions of ISK away from the storm and into new currencies and made even more once the ISK went into free-fall. Apparantly they used Straumur Burdaras bank to create hundreds of new accounts abroad for several top customers. This began on the same day the state declared it would take over 75% in Glitnir.

And Glitnir’s top brass, Bjarni Armannsson, Larus Welding and Einar Sveinsson were active transferring their own money away from the bank in September. Larus Welding removed 318 million ISK from his account and then a transfer abroad was made in his wife’s name for 325 million ISK. Bjarni Armannsson, moved 262 million ISK in seperate transfers into funds and to Nordea Bank in Norway. Einar Sveinsson transferred 170 million ISK to Norway days before the bank was nationalized.

So the rats jumped ship like everyone suspected and we can expect this list to grow longer day by day. But the thought of these people “rebuilding” Iceland in the future might be just enough to convince more and more people to leave their country behind.

No Justice, No Fairness, No Society

Dadi — Mon, 27 Jul 2009 10:39:04 +0000

When I was a student at a university in the US, the women’s soccer coach was fired from his job for pushing a player. This despite his record of leading the team to the final four in consecutive seasons. This was eight years ago and he still hasn’t been able to find another job as a soccer coach since.

I have coached soccer on the side for seven years and now have a UEFA-A coaching licence. When I lost my second job at the second doomed company I worked for last year I was offered a full-time coaching position at the club I’d been working for. I absolutely love the change from working on the “Icelandic economic miracle”.

But sports can offer a reflection of the society we live in. And during a U-16 game earlier this year an incident happened, with consequences that are in hindsight typically Icelandic. With just over 15 minutes played, the referee warned the players that he would start calling wrong throw-ins. Tensions were high, as the two teams were neighbors with a bit of rivalry. The next throw in was for the opponents but the player made a wrong one. When the referee made the call, the 27 year old opposition coach ran onto the field and gave him an x-rated earful. The ref answered with a harsh warning and play resumed. The ball went upfield where my winger was pulled down by a marker right next to the other team’s substitutes’ box. The coach lost his rag and kept shouting obscenities at the referee who then showed him a red card.

What happened next is ugly enough in a sporting context but keep in mind that the players on the field were 14-16 year olds. The coach kicked the ball full force into the referee and then proceeded to hit him in the side. Leaving the field he threatened to wait for him and kill him. Play resumed in a tough but fair match which was incidentally won by the opposition, 1-0 with a goal three minutes from time.

The aftermath might explain a lot about Icelandic society and why crimes do go unpunished and people in position of power never resign.

The referee and the linesmen left the field into the clubhouse to fill out the FA forms. While discussing the incident, the coach popped up from behind a counter where he was hiding and pleaded with them to not include this in their report. He told them he was on some sort of a probation within his club. Later it turned out that two weeks earlier there had been a meeting adressing similar sort of behavior on his part.

The referee was still in a state of confusion, and to add to the complexity of the situation they knew each other a little bit. So the referee wrote on the FA form that the coach had received a red card but did not describe the incident. The next morning, Channel 2 had a report on it. The referee contacted the Icelandic FA which asked for a more comprehensive report which he proceeded to write with the two linesmen. Parents at the game had also called the FA with complaints about the behaviour of the coach.

Then the Icelandic way of dealing with these kind of things took over. Officials from the coaches’ club who were at the game tried to make it look like it wasn’t as bad as described. Then the coach was interviewed on a popular radio show where he told everyone that this had been blown out of proportion and that he was somehow a victim of a smear-campaign. Then he hired a lawyer.

Normally in soccer when you hit a referee, let alone twice you can expect at least one year’s suspension, and in some cases life. Respectable clubs do not hesitate in firing coaches who resort to this kind of behaviour. But the coach and his lawyer spotted a loophole. According to strict interpretation of the Icelandic FA’s laws, only the referee’s official match report can be used as evidence. So the report was deemed invalid and he got away with a one-month ban, just in time for the official season.

His club fumbled about and removed him from the U-16 position, but he remained as their U-14 coach. Why? Because he had coached them from a young age and they were doing so well. Notably they have such talent in their ranks that any half-decent coach should be able to turn them on. Then there were stories about him having experienced difficulties in his life etc.

The referee who could have pressed criminal charges against him for assault didn’t because he thought the FA would hand him a fair punishment. Afterwards he just didn’t want anything more to do with the whole thing. And now three months later the guy is back on the bench with the U-16 team although another coach is there in the name.

So how is this relevant to the Icelandic economic situation?

- Unruly behavior is often swept under the carpet in Iceland. A drunk man who hits someone is dragged away by his friends, who excuse his behaviour with the amount he’s had to drink or some sort of incident which is supposed to justify it, a divorce, a death in the family etc. No expense is spared in making the victim feel guilty if he tries to prosecute the offender. That is why Glitnir CEO Birna Einarsdottir tells a sobbing story of cancer and her home being splashed with paint in this weekend’s DV. That is why the former owners of the banks talk endlessly about people’s ire affecting their poor families. That is how Bjorgolfur Gudmundsson managed to play himself a “victim” after being sentenced in the Hafskip scandal in 1980′s and returning as a prodigal son of the Independence Party to acquire Landsbankinn, through a company called Samson no less.

- When official institutions try to do their job, they are confronted with agressive lawyers who will shamelessly pull any trick in the book. For the FA in this instance, read the Financial Authorities. And now the Bjorgolfur father and son destruction team has issued a statement excusing the incredible loans made to them through Landsbankinn with technicalities.

- Interconnectedness skewes the picture in difficult matters. It was understandable that the referee felt sorry for the guy he knew and therefore excused his behavior to begin with. And here you can echo the accusations made by Eva Joly towards Valtyr Sigurdsson, State Prosecutor whose son is a CEO of Exista. Valtyr just doesn’t get it, too many in Iceland don’t, and even more use it to their advantage.

- With great powers comes great responsibility. And from a crappy movie come great words to live by. The coaches behavior was outrageous on every count, but his players, all under the age of 16 were not told by their parents or officials of the club that this had been wrong. Instead they were quick to make excuses for him and they had him exalted to a victim’s status in no time. He has never made an apology to the opposition for his behavior. By allowing him to continue, his club and the parents of the players have taken a stand against respect for the game, and with violence and disrespect towards referees.
Resignations have been few and far between since the economic crash. Before the crash Icelandic politicians just did not resign. Gudmundur Arni Stefansson, MP for the Democrats resigned in the 1990′s and was rewarded with an ambassador position, from the opposition party leaders. Arni Johnsen, MP for the Independence Party was forced to resign earlier this decade for embezzlement but after serving time he went to audacious lenghts to get a pardon and his “honor restored”, unusal for anyone who’s served time in Iceland but easy when your friends hold the executive powers. Bjorgvin G. Sigurdsson was asleep as a Minister of Commerce last year and resigned the day before all hell broke loose in January, most likely to play the resurrected victim in the next parliamentary elections. In which he succeeded.

Unfortunately the way the country deals with its bullies and criminals is dangerous to the society. When pillars of justice, fairness and responsibility are constantly being bombarded, it is no surprise to see the foundations collapse as they have and will continue to do so if not addressed correctly.

Why I Don’t Want To Pay For IceSave

Dadi — Thu, 23 Jul 2009 00:10:39 +0000

My sympathy is truly there for the Dutch and British savers who lost their money. I would like them to get back as much as possible.

But I do not want to pay that money myself.

I do not want lower public service or higher taxes.

And I don’t want to be walking down main street Laugavegur ten years from now, in a damaged society when Bjorgolfur Thor drives by in a black Range Rover and jumps into the trendy place of that day.

I don’t want to sit next to former Landsbanki CEO, Sigurjon Arnason in a fancy restaurant telling everyone how he loves to be filthy rich and I don’t want former chairman of the board, Kjartan Gunnarsson to lecture anyone about David Oddson’s exceptional morals.

I don’t want to see expert tax-evader Bjorgolfur Gudmundsson spend his old age in luxorious settings while those who have truly given to society, like my grandmother who was a teacher her whole life had to spend her last year in a cramped nursing home.

I don’t want any of these men to have anything to do with the “rebuilding” of Iceland.

I want those men cast out of our society if they don’t give up all their assets until the IceSave debt is repaid in full.

In fact they should be placed under a restraining order from the country until they have given up all their loot.

Lawyers might disagree, but humans understand.

The economic crash is Iceland’s Vietnam War.

People have lost their livelihoods and some have lost their lives.

And these men should never be seen in public again, unless it is standing in line at Bonus, or driving a ten-year old car.

But they are still sailing yachts, still talking about business opportunities and still driving Range Rovers. They still have their lavish homes.

These people call themselves consultants for crying out loud!

And that is why I don’t want to pay for IceSave.

I have paid through higher taxes, lower service, loss of purchasing power, lower home equity, less savings, worse pension and through currency depreciation.

I have paid enough.

Euromoney In 2002: Questions over Landsbanki’s new shareholder

Dadi — Tue, 14 Jul 2009 11:46:36 +0000

Is it a good idea for such a large stake in the bank to be controlled by individuals with no track record in banking? And what’s the background of these people who apparently earned their fortune in the beverages business in Russia? Indeed the validity of one of their first, key acquisitions in Russia – a soft-drinks bottler in St Petersburg – has been challenged vigorously in Russian and Icelandic courts by the original owners.

Several judgments have gone against the father and son. Even within Iceland this does not seem to be well known.

There’s another question. Why is it that the prime minister’s office, the privatization committee, the finance ministry and the central bank seem so unconcerned by Björgólfur Gudmundsson’s contribution to bringing a bank in Iceland to the point of insolvency in the 1980s?

From Euromoney November 2002