Three Bankers Charged With Financial Crimes

Former Glitnir manager Lárus Welding, former managing director of marketing at Glitnir Jóhannes Baldursson and former bank manager of Saga Capital Þorvaldur Lúðvík Sigurjónsson all have one thing in common: they are all facing charges of market manipulation.

DV reports that the charges stem from what has been called “The Stím Case” in the Icelandic media.

Stím was a company owned by Glitnir, Saga Capital, and other investors who bought shares in Glitnir (now Íslandsbanki) and investment company FL Group (now Stodir) for 25 billion ISK in 2007. The only problem was, 20 billion ISK of that money was lent to the investors by Glitnir itself.

So far, only 15 million ISK of the 24 billion ISK that Stím had when it went bankrupt in 2012 has been recovered.