From Iceland — Court Orders Former Bank Mogul To Pay Up

Court Orders Former Bank Mogul To Pay Up

Published May 2, 2013

Ingólfur Helgason, the former chief executive of Kaupþing bank, was ordered by the Reykjavík District Court this morning to pay back over a billion krónur of stock purchase loans he received before the crash, Vísir reports.   
The Court rejected an earlier resolve by Kaupþing’s resolution committee to absolve Ingólfur of his personal responsibility in loans he received to purchase Kaupþing stock in 2006. According to RÚV, the court found that the Kaupþing committee’s resolve was further unwarranted because Ingólfur only used half of one of his loans to purchase stock within the company.
The Court decision is based on previous Supreme Court rulings which have similarly ordered bankers to pay back loans they received before the crash.   


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