Too good to be true as Sheikh Al-Thani participates in scam to keep share prices up

One massive surprise of the summer was the acquisition of 5% of shares in Kaupthing by Quatari Sheik Mohamed bin Khalifa Al-Thani. Surprise because even though few expected the bank to be nationalized before the end of the year most did not consider shares in the Icelandic banks a good investment at the time, especially 5%.

Kaupthing blasted it as great news that showed confidence that wealthy foreign investors had in the bank. Turns out like most of the dishes cooked up and served by the management’s of the Icelandic banks, it was too good to be true.

A company in the Caribbean, owned by Al-Thani borrowed the money which financed the transaction from two other Caribbean companies which in turn got the money from Kaupthing. This is reported by Morgunbladid.

One of the companies belonges to Olafur Olafsson, one of Kaupthing’s largest shareholders who was one of the select few picked by the Progressive Party to receive Bunadarbankinn when it was nationalised and then turned into Kaupthing. The bank then struck a currency deal where the bank bought euros from Al-Thani which landed him enough profit to pay up the loan for the shares. All a big scam to keep the illusion going.

Al-Thani and Olafur are reported to be friends.

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1 Response to “Too good to be true as Sheikh Al-Thani participates in scam to keep share prices up”


  1. 1 Vilhjalm A. January 18, 2009 at 6:26 pm

    It has now become clear that the banks were broke (i.e. with no net equity) as early as 2006. This was quite an amazing feat, really, since they had only been operating in their new form for 3-4 years. Just about anything you could buy in 2003 or 2004 was higher in value than in 2006. They could have bought nothing but potatoes or cabbages or even rocks and they would have made more money than they did with their complicated investments. So how did these geniuses at the banks do it?

    Here’s a good post from another board (sorry for the cut & paste):
    “Bankarnir og í raun allt okkar fjármálakerfi var komið í þrot. Í raun gerðist það um árið 2006, þegar skuldatryggingaálagið hækkaði umtalsvert. Sú hækkun þýddi ekkert annað en endalok þessa risastóra Ponzi Scheme sem bankakerfið okkar var.
    En stærsta bólan var hlutabréfabólan. Hún sogaði fé út úr lífeyrissjóðum, úr sparnaði landsmanna og umleið var hún notuð sem veð fyrir lántökur. Augljóst er öllum að banki með neikvætt eigið fé, er gjaldþrota. Umleið er flestum ljóst að hlutabréf í eignarhaldsfélögum sem eiga í eignarhaldsfélögum sem eiga kannski eitthvað smá í einhverju alvöru fyrirtæki sem jafnvel er skuldsett upp í topp, er einskins virði.
    Þegar hlutabréfin byrjuðu að hrynja, þá var þetta í raun búið. Auðvitað reyndu þessir háu herrar, bankastjórar, sjóðsstjórar og aðrir fjárglæframenn að halda andlitinu. Bjuggu til svikamyllur til að blekkja væntanlega kaupendur og seljendur að fjármálakerfið væri stöðugt.
    Þá getur þú ímyndað þér hvað frétt eins og sú að Sjeik ætlaði sér að kaupa stóran hlut í banka sem flestir sem vit höfðu á, sögðu vera gjaldþrota.
    Ég er viss um að svona trix varði fangelsi í USA. Bankinn sjáfur sem hefur hag af fréttinni, lánar sjálfur Sjeiknum peningana til að kaupa hlutabréf í bankanum!
    Það hvernig það var nákvæmlega útfært hef ég enn ekki séð staðfest, en lít svo á að það sé aðeins tæknilegt atriði, tilgangurinn augljós, að blekkja kaupendur og seljendur hlutabréfa í bankanum.”


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