Economics Professor Warns Iceland about Hedge Fund Skip to content

Economics Professor Warns Iceland about Hedge Fund

By Iceland Review

An English professor in economics, Richard Portes, has contacted the Financial Services Authority in Britain and in Iceland to report on his interactions with a certain hedge fund, which disapproved of his coverage of the Icelandic economy.

Portes has for the past few weeks published detailed reports about the Icelandic financial system in other countries and evaluated that the economic situation in Iceland and the strength of its banks is more positive than many other analysts have evaluated, Fréttabladid reports.

Portes was then contacted by the management of a large hedge fund, which encouraged the professor to think about his reputation while reporting on the Icelandic economy.

The hedge fund in question, which will not be named for legal reasons, is one of the hedge funds Sigurdur Einarsson, Chairman of the Board of Kaupthing Bank, has accused of market manipulation and launching an attack on the Icelandic economy and banks.

“I quickly realized what was happening and decided to listen carefully and take notes,” Portes said, adding that in the phone call he received a very dark picture of the situation of the Icelandic economy and the troubles of Icelandic financial companies had been presented.

Portes says that this matter is now in the hands of the system and that he has full reason to believe that the Financial Services Authority will take his information seriously.

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