Landsbanki Seeks Compensation From Former Chiefs, Visir Reports

Landsbanki Islands hf’s winding-up committee said it will take legal action against the bank’s former executives for allegedly granting loans to related parties, Visir reported, citing Sigurdur Gudjonsson, a lawyer representing former Chief Executive Officer Sigurjon Arnason.

The committee wants executives to pay a total of 74 billion kronur ($636 million) in compensation, the Reykjavik-based news service reported, citing Gudjonsson.

The loans in question were granted to investment company Grettir, controlled by Landsbanki’s former owners Bjorgolfur Gudmundsson and his son Bjorgolfur Thor Bjorgolfsson, Visir said. The committee also criticized a loan to failed lender Straumur-Burdaras Investment bank, Visir said. Bjorgolfsson was Straumur’s largest owner before its collapse.

Calls to Gudjonsson seeking comment went unanswered.