Wall Street Stunned As Iceland Dares To Jail Banker Involved In 2008 Crash

Tyler Durden's picture




 

The impossible is possible. Never say never. Wall Street bankers are staring agog at headlines coming from Europe where, in Iceland, the former chief executive of one of the largest banks in the country which was involved in crashing the economy in 2008 has been sentenced to jail time. As Valuewalk reports, in receiving a one year prison sentence, Sigurjon Arnason officially became the first bank executive to be convicted of manipulating the bank’s stock price and deceiving investors, creditors and the authorities between Sept. 29 and Oct. 3, 2008, as the bank’s fortunes unwound, crashing the economy with it. It appears he was as shocked by the verdict as Wall Street-ers are, "this sentence is a big surprise to me as I did nothing wrong." It was likely all for the people's own good...

 

 

Via ValueWalk,

Some thought it would never happen. But in Iceland, the former chief executive of one of the largest banks in the country which was involved in crashing the economy in 2008 has been sentenced to jail time.

 

Iceland banker the first to manipulate bank’s stock price

 

In receiving a one year prison sentence, Sigurjon Arnason officially became the first bank executive to be convicted of manipulating the bank’s stock price and deceiving investors, creditors and the authorities between Sept. 29 and Oct. 3, 2008, as the bank’s fortunes unwound, crashing the economy with it.  Landsbanki was one of three banks that had tallied nearly $75 billion in debt before the final curtain was drawn.

 

What, me guilty? was the bank executive’s response upon learning of his fate. “This sentence is a big surprise to me as I did not nothing wrong,” Arnason was quoted as saying in a Reuters article after he learned of his punishment.  Amason had not decided if he was going to appeal the decision to the supreme court, as the appeal process might take longer than his sentence.

 

Other Iceland bank executives also convicted

 

The Reykjavik District Court had lopped off nine months of Arnason’s sentence, saying they were suspended.  Other bank executives involved in the situation were convicted: Ivar Gudjonsson, the former director of proprietary trading at the bank, along with Julius Heidarsson, a former broker at the bank. They each received nine-month sentences and six of those nine months were immediately suspended by the court.

 

All pleaded innocent to the charges, as the the fallout from the 2008 crisis continues to this day in the north Atlantic island and around the world.  As a sign of thawing in the crisis, Reuters reported that earlier in the week Landsbanki, the successor to the failed Landsbankinn, agreed to extend a deadline to restructure bonds to the end of the year. If a bond restructuring agreement is reached, it could help the government lift capital controls which were imposed due to the crisis.

*  *  *

It appears he needs to 'donate' more to the nation's leaders.

0
Your rating: None
 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Thu, 11/20/2014 - 23:04 | 5472331 Sub MOA
Sub MOA's picture

well is a start

Thu, 11/20/2014 - 23:08 | 5472346 CaptainObvious
CaptainObvious's picture

Yes, and a good one.

Go ahead, Iceland, show the USSA how it's done.  Default on that debt, jail those bankster fucksticks.  Damn, I wish we had some prosecutors with balls in 'Murica.

Thu, 11/20/2014 - 23:21 | 5472417 Sub MOA
Sub MOA's picture

Muricas balls are in Ft knox where that shiny shit used to be

Thu, 11/20/2014 - 23:25 | 5472421 CaptainObvious
CaptainObvious's picture

My balls aren't in Fort Knox.  I keep them where I keep my shiny stuff.  And damn, my balls are cold at the bottom of Lake Hedger.

Thu, 11/20/2014 - 23:46 | 5472496 Fish Gone Bad
Fish Gone Bad's picture

Sheesh.  Just looking at the neckbeard and you know he is going to miss a few episodes of My Little Pony while in prison.

Fri, 11/21/2014 - 00:54 | 5472678 MiguelitoRaton
MiguelitoRaton's picture

Clawback income?

Fri, 11/21/2014 - 01:50 | 5472781 aVileRat
aVileRat's picture

Came here to post a "do you think he lift's" joke, this far outclasses any Snark I could have come up with waiting for Singapore. Well done.

Anyone who has ever done business in Iceland can tell you straight up that place was/is one of the most greasy banking centers, bar maybe mainland China, Nigeria and the places East of Poland.

 

Thu, 11/20/2014 - 23:26 | 5472423 johnQpublic
johnQpublic's picture

3 months in jail for crashing a nation. I hope every minute is spent being gang raped, but my gut tells me they will be golfing.

Fri, 11/21/2014 - 07:33 | 5473045 Bangalore Equit...
Bangalore Equity Trader's picture

Listen Zero's.

Looks like he has diabetes which will require special "TREATMENT" during his 3 month stay. He'll need round the clock care by a qualified servant, ah I mean nurse. Or two.

I hope he's ok. I'm a little worried.

Fri, 11/21/2014 - 10:31 | 5473481 XitSam
XitSam's picture

Golf in Iceland?

Fri, 11/21/2014 - 14:40 | 5474437 Matt
Fri, 11/21/2014 - 15:32 | 5474628 XitSam
XitSam's picture

It was rhetorical.

Thu, 11/20/2014 - 23:28 | 5472436 The9thDoctor
The9thDoctor's picture

1 in year in prison in Iceland for a bankster?  Ha!  At least he didn't steal VHS tapes from a Kmart in 1995, or he would still be in prison... to this day!  Leandro Andrade is serving two 25-years-to-life sentences for stealing $153 worth of VHS tapes from a Kmart in California.  His sentence was upheld by the US Supreme Court as constitutional.

Thu, 11/20/2014 - 23:59 | 5472537 MrPalladium
MrPalladium's picture

Third strike!

Fri, 11/21/2014 - 00:12 | 5472575 disabledvet
disabledvet's picture

SHARS BJORKSON FOUND GUILTY!

FLEES TO NEWFOUNDLAND!

Fri, 11/21/2014 - 00:15 | 5472584 Bohm Squad
Bohm Squad's picture

"California is the only state that treats a misdemeanor as a third strike felony."

 

Fri, 11/21/2014 - 00:48 | 5472666 DaveyJones
DaveyJones's picture

along with its water, California mistreats just about everything 

Fri, 11/21/2014 - 07:26 | 5473031 SoDamnMad
SoDamnMad's picture

DaveyJones

That's why I left and feel so good about it every day I wake up.  Where I live now the water is pure, the sky is blue and nobody is shooting anyone.

Fri, 11/21/2014 - 07:55 | 5473073 Bangalore Equit...
Bangalore Equity Trader's picture

Listen.

Can anyone really "LIVE" in Antarctica?

Fri, 11/21/2014 - 00:12 | 5472570 NeedtoSecede
NeedtoSecede's picture

 

 

Slighty off topic 9th but your post made me think about another very harsh sentence. Is that SOB that made "the video" that supposedly instigated the Beghazi attacks still in jail?  Is he still rotting in prison somewhere for making a harmless video that nobody watched?

Fri, 11/21/2014 - 04:00 | 5472899 ebworthen
ebworthen's picture

Welcome to the debt serfdom plantation of the New Rome.

Do not pass Go, do not collect $200, bend over you placid sheep!

Fri, 11/21/2014 - 05:44 | 5472958 Joenobody12
Joenobody12's picture

 Leandro Andrade is serving two 25-years-to-life sentences for stealing $153 worth of VHS tapes from a Kmart in California.  His sentence was upheld by the US Supreme Court as constitutional. "

Right before KMart declared bankruptcy in Jan 2002.  the upper management awarded themselves handsomely.  $30 millions to various officers including $18 millioins to 9 top executives.  

Fri, 11/21/2014 - 08:07 | 5473089 Peter Pan
Peter Pan's picture

Is he forced to watch those VHS tapes in jail as punishment?

What a fucked system. It must cost at least $10,000 per year to keep that fellow in jail for a lousy $153. 

They should have made him work a month for nothing and call it quits.

If they had given him $10,000 to begin with the guy might have started his own business and contributed to society instead of society paying for him.

Fri, 11/21/2014 - 19:37 | 5474637 XitSam
XitSam's picture

If you think the American justice system is about either logic or justice, you're an idiot.

Thu, 11/20/2014 - 23:10 | 5472362 Seek_Truth
Seek_Truth's picture

Iceland is a shining light in punishing these banksters.

The BRICS are, and will more fully, join in shedding light on the Babylonian Banksters, in the days ahead.

"Woe to those who call evil good and good evil, who put darkness for light and light for darkness, who put bitter for sweet and sweet for bitter." - Isaiah 5:20

Fri, 11/21/2014 - 00:52 | 5472671 DaveyJones
DaveyJones's picture

as required everywhere, Iceland had a miniature political revolution, threw out many established politicians, told the banks and criminal debt deals to fuck off and chased many financial criminals to far off lands. THey have jailed more than anyone.

Fri, 11/21/2014 - 01:07 | 5472704 Seek_Truth
Fri, 11/21/2014 - 01:29 | 5472741 disabledvet
disabledvet's picture

"Shars was found to have misrepresented a deal with one Olaf Knudson, a sheep herder from Bjorkkankluger.  After tallying up the losses of 3,374 Viking Penumbras...and twenty four seal skins...the Great Horn of Oblast was rendered invoking the Right of Umbrage per The Long Boat Rioty...

Meanwhile back in America...

Fri, 11/21/2014 - 07:10 | 5473013 BlindMonkey
BlindMonkey's picture

I think you could have called them the "shinning light" if they tossed those fuckers into a volcano. It's a start though.

Fri, 11/21/2014 - 08:49 | 5473156 Zadok
Zadok's picture

To 'Seek-Truth,

Don't forget the guilt of those 'Stockholm syndrome' types that protect the abusers by oppressing the victims.

Thu, 11/20/2014 - 23:11 | 5472371 HedgeAccordingly
HedgeAccordingly's picture

Firing on all cylinders 

U.S. Economic Growth Moderate Yet Steady As Global Growth And Inflation Downshift | http://hedgeaccordingly.com/2014/11/u-s-economic-growth-moderate-yet-ste...
Fri, 11/21/2014 - 03:19 | 5472868 JLee2027
JLee2027's picture

Only a year? He got off easy.

Fri, 11/21/2014 - 05:32 | 5472948 TheRedScourge
TheRedScourge's picture

Should be a year plus however long it takes him to make a formal statement admitting that he did something wrong. So, probably 20 to life.

Fri, 11/21/2014 - 06:53 | 5472999 Emergcy
Emergcy's picture

Super, finally a country starts. In US impossible to think about. Here bankers pay little tip, called fine, for their crime and continue. Best examples: LIBOR, anyone went to jail? Bankers in US control government which are their puppets. By the way, in Europe the same.

Thu, 11/20/2014 - 23:06 | 5472335 williambanzai7
williambanzai7's picture

Nail him

Fri, 11/21/2014 - 00:06 | 5472554 philipat
philipat's picture

As in "To the wall"?

Fri, 11/21/2014 - 11:29 | 5473739 monkeyboy
monkeyboy's picture

We can only hope he gets 'gang nailed' by a marauding pack of prison Viking's vowing Odin's revenge on the banking scum.

Thu, 11/20/2014 - 23:05 | 5472336 dirtyfiles
dirtyfiles's picture

comforting to say least..

Thu, 11/20/2014 - 23:08 | 5472348 holdbuysell
holdbuysell's picture

Well look at the convicted criminal bankster doing time.

IT'S ABOUT TIME!

Fri, 11/21/2014 - 02:40 | 5472830 sandhillexit
sandhillexit's picture

Think we could send them Sandy Weill?  Sort of a "banker rendition."  First we'd have to dig him up from whatever hole he has crawled into.  Like Saddam.  I am sure the employees he ripped off year after year would be happy to take up a collection for airfare.  SW loves naming things after himself.  Possibly they could call it Black Site Sandy.  

Thu, 11/20/2014 - 23:08 | 5472349 yogibear
yogibear's picture

Makes me want to visit Iceland and spend a few thousand over there.

The people of Iceland should be proud! There are so many banksters that should be hanged.

Thu, 11/20/2014 - 23:11 | 5472372 CaptainObvious
CaptainObvious's picture

Makes me want to MOVE to Iceland.  The debt monster is gone, they're jailing the criminals, and the chicks are so hot they make the volcanos look like glaciers.

Thu, 11/20/2014 - 23:51 | 5472509 Fish Gone Bad
Fish Gone Bad's picture

Kyle Bass called Iceland a "roach motel". 

Fri, 11/21/2014 - 09:08 | 5473187 Lostinfortwalton
Lostinfortwalton's picture

Sometimes the Kylester gets it wrong.

Thu, 11/20/2014 - 23:11 | 5472357 NoDebt
NoDebt's picture

"This sentence is a big surprise to me as I did not nothing wrong"

Yes you did.  Now you have a year to figure out exactly what it was.  You're a smart guy.  You'll figure it out.

Don't bend over for the soap.

Thu, 11/20/2014 - 23:11 | 5472360 e_goldstein
e_goldstein's picture

The dude will only spend 3 months in jail (at the most). Not exactly a cause for celebration.

Thu, 11/20/2014 - 23:12 | 5472376 CaptainObvious
CaptainObvious's picture

That's three more months than Corzine got, so I'm celebrating.  Actually, I started the celebration before I even read this post.  Black Label and a good cigar.  I'm too poor (read:  not a bankster), so I can't afford the hookers and blow.

Thu, 11/20/2014 - 23:13 | 5472379 Seek_Truth
Seek_Truth's picture

Something tells me he will recieve a lot of punishment in those "three months", if he even survives.

 

Thu, 11/20/2014 - 23:20 | 5472403 e_goldstein
e_goldstein's picture

Okay, if he is repeatedly cornholed by giant gay viking prisoners with chubby fetishes for 3 continuous months then I'll agree he may have served his debt to society... but just barely.

Thu, 11/20/2014 - 23:21 | 5472414 CaptainObvious
CaptainObvious's picture

Fuck, you owe me one mouthful of Scotch.  That was so fucking awesome. +1000

Do NOT follow this link or you will be banned from the site!