Tuesday, 13 July 2010


Vigorously pursuing those allegedly responsible for Iceland’s 2008 financial crisis, investigators have  issued an international arrest warrant against Sigurdur Einarsson, chairman of the board of governors of the failed Kaupthing Bank.
An Interpol notice on Tuesday said Einarsson was wanted on charges of counterfeiting, forgery and fraud.
Einarsson, who lives in London, was said to be reluctant to come to Reykjavik for fear of being arrested and Icelandic authorities have refused to offer any assurances.

Why aren't we arresting our Bankers that caused the FINANCIAL CRISIS?  Instead we reward them for failing with increased salaries and bonuses.  Could it be that ICELAND is a small country where the Government is much closer to the people?

h/t Cuthulan


Sir Fred the Shred said...

It wasn't our fault. It all started in America. Can I come home yet ?

Toni said...

Sir Fred was rather like Sir Peter Baring, a man of great ambition but limited knowledge - Not to say either was stupid, its just they were old guys and SCDO's and Credit Default Swaps are recent trading instruments. When your running a company the size of RBS, you are more political than anything else. You can't be expected to know exactly what your mortgage structured finance department is doing all the time. He did lose the plot with the ABN AMRO purchase though and he deserves jail for being so arrogant.

Funny thing is if you look at most of the names of these funding vehicles, Such as Northern Rock's Granite at the time the internet and much of the financial press was full of adverts from the legal teams, usually a big six law firm, that worked on them. These all seem to have disappeared now, so as an ex-banker I think the lawyers should be lined up against the wall first.

Dark Lochnagar said...

Fred, No you bastard. What about my booking for July for your villa. You never got back to me.

Dark Lochnagar said...

Antonio, for preference, I would shoot the accountants first, followed by lawers and then bankers. I've got to be honest though, if I got a £1m bonus for doing my job, I would accept it gladly!

Toni said...

By the way here is some selected numbers from the March 2007 pay review in a well known city magazine:

Mortgage Backed Securities
Position Base Bonus
1-2 year assoc £32-37k £35-40k
VP £50k £150-300k
MD £75-100k £1-1.5m

Structured Credit
Position Base Bonus
3 year assoc £50k £112-137k
VP £65-7 £250-300k
MD £100k £1.2-1.5m

Equity Prop Trading
Position Base Bonus
3 year analyst £50k £50-75k
VP £62 £175-225k
MD £100k £600k-1m

These are not superstar traders or even heads of departments. The same magazine in its May 2007 edition listed the top 100 traders in the world. There were the usual names you expect like Soros and Cohen, who earned between £500m and £1bn and loads of hedge fund managers but a bunch city traders made the same list. Mostly they were from Goldman Sachs, a few from JP Morgan and some Swiss banks with estimated total earnings for the year of between £25-50m. The annual list was know as the "ultimate roll call of capitalism".

Sir Fred the Shred said...

Toni. 'Granite' still exists but is 'off the books ' and in a tax haven in Jersey. It managed to avoid all the losses and is bullet proof from taxpayers who bailed out NR.

DL. Sorry we're block booked through until September for World Cup celebration parties.

Anonymous said...

You're right. Iceland is, in general terms, a much better run country. Because Reykjavik is a large village of only 150,000 or so souls, the government is far closer to the people.

The trouble with our lot is that they think themselves as rulers of the people rather than the servants of the people.

David Cameron needs to remember he works for me and for you. We help to pay him and what we want matters. If he ever knew that, within a few days of being in Downing Street and with people fawning all over him; his every word a command; people almost bowing when he walks into a room, “yes prime minister”, he will have soon forgotten it.

I suspect that the Icelandic Prime Minister might be seen in a local supermarket queuing with everyone else and that way she will realise just how bad the queues are.

That's what brings government close to the people, and responsive to the needs of the people.

The buses will never run on time until the Prime Minister has to wait half an hour in the biting cold for one.... if you see what I mean.

Dark Lochnagar said...

Antonio, Unbeleivable money some of them are making. I went into and built up the family business when I left 6th year instead of going to uni. I thought it was the right thing to do, but when you see bankers and civil servants making fortunes, you start to wonder!

Dark Lochnagar said...

Sir Fred, what's 'granite'.
I could maybe go late Sepetember/early October if it's free?

Dark Lochnagar said...

Tris, yes maybe like Scotland would be if we had independence. No it's like the American Presidency. All of a sudden you're not Joe Bloggs but you are someone to fawn over and no-one does that better than the British establishment.

Sir Fred said...

DL. Granite was a 'securitisation vehicle' that repackaged NR mortgages into investments. It was worth between £45 and £70Bn and escaped the main crash of NR as it was ringfenced in Guernsey or Jersey. Not sure if it's wound up now. Or where all the money went. Maybe the taxpayers saw some money but I'm not sure.

I'll check the diary for the tattie holidays. See if I can fit you in.

Dark Lochnagar said...

Fred, I thought Government was supposed to be stopping offshore accounts. If there was any money due to the taxpayer we should be getting it. Maybe if we sent the SAS in to invade Jersey, that would stiffen their resolve.

Anonymous said...

No it's not because the government is closer to the people.

It's because the people run the country and has its own movement. If the public wants to go one direction but the government the other. The government gets thrown out.

The government is also elected to server the people but in other countries this seems forgotten and there is no public opposition so the government can easily work for the BANKERS AND COMPANIES instead of the people.

Its your own fault. Learn to run a country and exist in this world instead of just staying inside your house.

An example is how few go to polls, elections and such. Hahaha what a joke. You should work getting a near 100% turn up rate. And then you've got the public running the country. Once they take opinion.

Dark Lochnagar said...

Anonymous, I don't know where you are from but I agree with you 110%. Are you from outside Britain. I would be interested in knowing particularly if you're from Iceland.