Iceland’s Financial Supervisory Authority to Fire CEO

Iceland’s Financial Supervisory Authority moved to fire Gunnar Andersen, the watchdog’s chief executive, following an internal probe into his prior involvement with offshore holding companies owned by failed lender Landsbanki Islands hf, according to the FSA’s chairman.

“He has until the end of Monday to respond to a letter of resignation” given to him today, Chairman Adalsteinn Leifsson, said in a telephone interview late yesterday. “Once the board has reviewed his response a final decision on his termination will be taken, as early as Tuesday.”

Iceland’s state broadcaster RUV reported in November that Andersen had been actively involved with offshore holding companies owned by Landsbanki in 2001. Andersen, who denies the allegations, was appointed CEO in April 2009.

That report led to an internal investigation with the regulator, which probed whether Andersen was fit to carry out his duties for the FSA.

“I can confirm that I’ve received a termination letter,” said Andersen in an interview. “This follows the reporting by RUV, which was factually wrong.”

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