Archive for April, 2010

Quotes from “The Truth Report”

April 16, 2010

National Newspapers Editor:

” I’ve been monitoring this for 50 years. It’s a disgusting society, it’s all disgusting. There are no principles, there are no ideals, there is nothing. It is just opportunism and power struggle.”

Kaupthing Bank HQ:

“Hi Magnus, We didn’t finalize our bonuses for last year. I suggest 1 million euros. What say you. Bye. Se. ”

Sigurdur Einarsson email to Magnus Gudmundsson, date. 9th July 2008.

Kaupthing Bank Luxembourg:

“Thank you more than enough :-).”

Responses to Magnus Gudmundsson, date. 9th July 2008, to the above Email from Sigurdur Einarsson.
. . .
” The largest owners of all the big banks had abnormally easy access to credit at the banks they owned, apparently in their capacity as owners.”

” Unfortunately, it seems to be unavoidable to conclude that the state’s budget policy increased in fact the imbalance.”

” The Board of Governors of the CBI was more often in favour of less restraint than the chief economist of the Bank had proposed.”

” All the banks purchased their own shares on a large scale in automatically matched trades in the Stock Exchange.”

” During the meetings of the Board of Governors of the CBI with ministers, the bank would not be in the habit of handing out documents with summarised information, along with the bank’s review of that information and proposals for actions, where applicable.”

” In statements by ministers and representatives of the governmental institutions before the SIC, each pointed a finger at the other concerning positive obligation and no one assumed responsibility.”

” On 15 April 2008 Mr. David Oddsson sent a formal request for a currency swap agreement to the Bank of England. Mervyn King, Governor of the Bank of England, replied to Mr. Oddsson’s letter on 23 April and rejected the request by the CBI. However, he declared that foreign central banks could help Iceland find an effective way to reduce the size of its banking system. In his opinion, this was the only practical solution to the problem. In closing, King said that he offered all the help he could provide to tackle the issue at hand. The CBI did not accept this offer.”

” The aforementioned procedures by the authorities with regard to contingency plans for protecting the financial system of the country, and other fundamental interests of state and the nation, were unacceptable. These methods were not in keeping with the manner in which nations with developed financial markets and administration operate in general.”

” In its supervisory duties the FME was lacking in firmness and assertiveness, as regards the resolution of and the follow-up of cases. The Authority did not sufficiently ensure that formal procedures were followed in cases where it had been discovered that regulated entities did not comply with the laws and regulations applicable to their operations.”

” However, when the size of the financial system of a country is nine times its gross domestic product the roles are reversed. This was the case in Iceland. It appears that both the parliament and the government lacked both the power and the courage to set reasonable limits to the financial system.”

” … the Commission was not expected to address possible criminal conduct of the directors of the banks in their operations. …
the SIC is of the opinion that Mr. Geir H. Haarde, then Prime Minister, Mr. Árni M. Mathiesen, then Minister of Finance, and Mr. Björgvin G. Sigurðsson, then Minister of Business Affairs, showed negligence, within the meaning of Article 1(1) of Act No 142/2008, during the time leading up to the collapse of the Icelandic banks, by omitting to respond in an appropriate fashion to the impending danger for the Icelandic economy that was caused by the deteriorating situation of the banks.
The SIC is also of the opinion that Mr. Jónas Fr. Jónsson, then Director General of the FME, and Mr. Davíð Oddsson, Mr. Eiríkur Guðnason and Mr. Ingimundur Friðriksson, then Governors of the CBI, showed negligence, within the meaning of Article 1(1) of Act No 142/2008, in the course of particular work during the administration of laws and rules on financial activities, and monitoring thereof.” …

The Truth Report
Press conference 12.04.2010 in English