Ex-CEO And Investment Chief Of Collapsed Iceland Bank Landsbanki Arrested

sigurjon arnasonSigurjon Arnason

Photo: Eyjan

The former CEO and investment chief of collapsed Icelandic bank Landsbanki have been arrested in connection with a market manipulation probe, the AFP reports.Sigurjon Arnason, the bank’s CEO and Ivar Gudjonsson, who was the chief of investments, were arrested yesterday and were in court today.

They’re being held in custody until late Janary according to their lawyers.

There were also three other ex-Landsbanki executives arrested, including the ex-chief corporate accountant Elin Sigfusdottir, former brokerage head Steinthor Gunnarsson, and former chief of securities Yngvi Orn Kristinnsson, who were taken in for questioning by police but were later let go.

The investigation stems from a probe that began last October into the bank’s “spectacular collapse” in 2008.

Iceland’s FSA believes Landsbanki execs were involved in market manipulation for nearly five years leading up to the country’s banking crash, which took down three of the country’s biggest financial institutions.

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