The biggest bank robbery in Iceland’s history?

 

The main purpose of A Holding – aka Baugur – appears to have been to gain hold of the Hafnarfjörður Savings Bank, since plans were already underway to merge it with another savings bank – Sparisjóður Vélstjóra, or the Machinists’ Savings Bank  [originally founded by machinists who worked on ships]. That merger went through in December 2006 and increased the value of the two banks exponentially in the merged company, which was given the name Byr. Incidentally, those plans were – as yet – completely under wraps, so there was clearly some underhanded trading going on – I presume that is the basis of the aforementioned lawsuit, although based on the info I’ve seen that’s not completely clear.

A year later, or in December 2007, the owners of Byr decided to increase the bank’s initial equity by ISK 26.2 billion. Those who already owned shares in the bank –  the stofnfjáreigendur – were invited to increase their investment, and the increase was financed through loans from Glitnir bank – which in turn was largely owned by Baugur.

Four months later, the bank paid dividends to its shareholders – the stofnfjáreigendur – worth ISK 13.5 billion.

A must read article from the Icelandic Weather Report

Advertisements

0 Responses to “The biggest bank robbery in Iceland’s history?”



  1. Leave a Comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s





%d bloggers like this: