REYKJAVIK Nov 19 The former chief executive of
Landsbanki, one of three banks that racked up $75 billion in
debt before collapsing and crashing the economy in 2008, was
sentenced to one year in jail on Wednesday for market
Sigurjon Arnason was convicted of manipulating the bank's
share price and deceiving investors, creditors and the
authorities in the dying days of the bank between Sept. 29 and
Oct. 3, 2008.
The Reykjavik District Court said nine months of Arnason's
sentence were suspended. Ivar Gudjonsson, former director of
proprietary trading, and Julius Heidarsson, a former broker,
were also convicted and received nine-month sentences, six of
which were suspended. All pleaded innocent to the charges.
"This sentence is a big surprise to me as I did not nothing
wrong," Sigurjon Arnason told Reuters after the sentencing,
adding that he and his attorney had not yet decided whether to
appeal to the supreme court.
The fallout from the 2008 crisis continues to this day in
the north Atlantic island.
Earlier this week Landsbanki and its successor Landsbankinn
agreed to extend a deadline to restructure bonds to the end of
the year. If a deal is struck, it will help the government lift
capital controls which were imposed due to the crisis.
(Reporting by Robert Robertsson; writing by Sabina Zawadzki and