Former Glitnir CEO Questioned by Special Prosecutor Skip to content

Former Glitnir CEO Questioned by Special Prosecutor

Former CEO of Glitnir Lárus Welding was interrogated by Special Prosecutor Ólafur Thór Hauksson all day yesterday. The interrogation, which is part of an investigation of Glitnir’s trade with companies owned by Jón Ásgeir Jóhannesson and his business partners, wasn’t over until 8 pm.


The headquarters of Glitnir in Reykjavík. Photo by Páll Kjartansson.

It is believed that approximately ISK 250 billion (USD 2.2 billion, EUR 1.6 billion) was defrauded from the bank through fraudulent trade and market abuse, among other means, reports.

The Special Prosecutor’s investigation involves a so-called Stím plot, which allegedly had the purpose of getting rid of stocks that couldn’t be sold which the bank itself held, along the FL Group, which was its majority owner at the time.

The holding company Stím was established, which Glitnir owned along with Saga Capital and a few of the bank’s partners. Stím took a loan worth ISK 19.5 billion from Glitnir, ISK 1 billion from Saga Capital and ISK 2.5 billion from FS, which was owned by Fons. Fons borrowed ISK 1 billion of that amount from Glitnir.

ISK 2 billion was put into Stím as equity but the remaining amount used for buying stock in Glitnir and FL Group, as described on

The investigation also includes the affairs of the investment fund GLB FX in relation to the Stím plot, and loans which Glitnir provided to Stodir, then Landic Property, Baugur and 101 Capital in connection with the acquisition of the Danish real estate company Keops.

Furthermore a loan from Glitnir to FS38 for the acquisition of Aurum Holding is being investigated, as well as Glitnir’s purchase of stock in the insurance company TM.

It is believed that the majority owners and executives of FL Group used Glitnir for their personal interests and pressured the bank to provide loans for often dubious trade. The investigation is largely based on data collected by Kroll for Glitnir’s winding-up committee.

Click here to read more about the investigation.

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