The British Serious Fraud Office (SFO) is looking into the affairs of the old Icelandic banks and hopes to soon decide whether or not a formal investigation into illegal activities will be launched.
A three-man team from the SFO has been working in Reykjavik with Icelandic authorities, in particular exchanging information and evidence about all three of the banks with Iceland’s Special Prosecutor‘s office, since Monday.
“By means of sharing evidence we have sped up our investigation considerably and I am sure the same can be said about Iceland’s Special Prosecutor’s office. We seem to have already done many weeks’ work in just the three days we have spent here,” says Polly Sprenger from the SFO.
Sprenger is hopeful that some of the issues which are now being investigated connected with Icelandic banks will prove adequate to begin a formal investigation leading to future prosecutions.
The current informal SFO investigation into all of the old Icelandic banks began in the spring, but there was not satisfactory evidence to commence a formal investigation. The SFO now intend to focus the investigation one of the three former commercial banks; but Sprenger would not comment further on which of the banks that is.
Frettabladid reports.
well done
Agree with Fisy on this,
i believe the SFO will be very useful to us, it will also be interesting to see how this will evolve, possibly some
treads in the investigation will lead into other banks, like RBS or Lloyds.
>i would be interested to see a lloyds or rbs loan book for comparison
I don’t work in banking, but I can guarantee you that they won’t be lending most of their money to a few individuals with zero real security (or even just zero security).
They were all sailing close to the wind, some capsized some didn’t. Pick a bank anywhere in the world and chances are an investigation would find something!
i think fisy is right on this one
i would be interested to see a lloyds or rbs loan book for comparison
wonder when judicial review comes out
There’s probably no better way for the Icelandic government to obtain an investigation of Kaupthing than to invite the UK’s SFO – everyone knows the UK will be especially motivated. Gordon Brown is probably speed-reading the dodgy loan collateralisation sheets after every supper. It’s a win-win situation for Iceland’s Special Prosecutor and the UK’s SFO. And perhaps the beginning of a special friendship between Brown and Johanna.
More and further as I say on Aug 10th:
“I am not convinced this leak came from Iceland to DV but from people related to KSF in UK.
The hot pot ( heitapottinum ) gossip is that the UK FSA and Treausry knows how bad they are going to look once judicial review of decision to take Kautphgin Singer and Friedlander under Northern Rock is going to be so they are stirring up this first.
Reason SFO can be invovled is majority of loans made were to UK based businessmen not to Icleanders. But that is not the primary reason for the interest.
It is for political ass covering purposes. The asses for Darling, UK FSA and Treasury.”
Still as this petition makes clear we will not be able to read ” other side ” of the story until the High Court give its ruling. Which gives a long time for the mud slinging :
Details of Petition:?“The UK Government used clandestine and secret means to freeze £550M of sterling assets [ this is the money of Kaupthing IOM ] in the UK banking system during the recent Icelendic crisis. The UK court papers related to this action are sealed and not able for UK voters or tax payers to view. Therefore I implore and request that these papers be made public to understand : (a) Did the Uk government act rashly ? (b) Is the UK Government & Treasury hiding the truth ? (c) Basic representation – for a UK Taxpayers – “show us the money”.
http://www.number10.gov.uk/Page20205
UK Government response :
“..Following due legal process, KSF UK was put into administration. It is correct that, when ordering that KSF UK be put into administration, the court also ordered that its file relating to the application for administration should not be open to inspection without leave of court (except for the court order and the notification of the appointment of an administrator). The FSA requested such an order because the documents provided to the court contained information which was commercially sensitive and confidential under section 348 the Financial Services and Markets Act 2000.”
But of course this related information of loan book was not too sensitive to make sure it was leaked as long as it is in benefit of Darling and Treasury ( and UK FSA of course ).
Its obvious which bank this is SFO looking the bank that gives Brown and Darling and his cabinet most sleepless nights.
Kaupthing and specifcally Kaupthing Singer and Friedlander of course.
The time line and items as you might say Brumley :
Item : 10 July, The UK High Court hears the judicical review case on 10th July. The evidence and arguments from Kaupthing about the taking of Kaupthing Singer and Friedlander and Kauthping Edge being given to ING are presented to high court.
Item : 29 July, Wiki leaks publishes stolen Kaupthing Loan book presentate from just before Kaupthing Singer and Friedlander was taken by UK FSA.
Item : 4 Aug, Rowena Mason City Reporter of UK Telegraph ” sources ” tell that the UK Serious Fraud Office has intensified its inquiries following the leak of Kaupthing’s loan book on to Wikileaks.org over the weekend. http://www.telegraph.co.uk/finance/financetopics/financialcrisis/5973630/SFO-intensifies-Icelandic-banking-inquiry-after-Kaupthing-leak.html
Item: 5 Aug, Ólafur Þór Hauksson, Iceland’s special prosecutor in the official banking investigation, said in an interview with mbl.is that the SFO has made no formal contact with his team and has not requested any documentation from it. He said his team of investigators first heard about the SFO investigation through the media like everyone else.” http://www.mbl.is/mm/vidskipti/frettir/2009/08/05/rannsaka_islensku_bankana/
As I say a short time after:
https://www.icenews.is/index.php/2009/08/05/uk-serious-fraud-office-investigating-iceland/#comment-88377
Obviously he did not hear because this is a political stirrup job created by UK government and Darling in particular to try and reduce the impact of the coming report from judicial review of the taking down of Kautphing Singer and Friedlander under Northern Rock Act.
It anticipates the very nasty things are going to be said about UK FSA and Darling over the justification for taking down Iceland’s biggest company and last standing bank at the time .
And so they must muddy waters and sling as much dirt around as possible between now and the result from the UK High Court will come.
>The SFO now intend to focus the investigation one of the three former commercial banks; but Sprenger would not comment further on which of the banks that is.
Please be Kaupthing, please be Kaupthing. I want to see Fisy’s face :) .
I’m kidding, but does anyone know?