Bloomberg the Company

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Follow Us

Industry Products

Landsbanki Seeks Compensation From Former Chiefs, Visir Reports

Don't Miss Out —
Follow us on:

Dec. 1 (Bloomberg) -- 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.

To contact the reporter on this story: Omar R. Valdimarsson in Reykjavik valdimarsson@bloomberg.net.

To contact the editor responsible for this story: Tasneem Brogger at tbrogger@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.