Iceland’s Financial Authority Reacts to Attack Claims Skip to content

Iceland’s Financial Authority Reacts to Attack Claims

The Financial Supervisory Authority of Iceland (FME) has decided to react to claims made by Iceland’s Central Bank’s main director Davíd Oddsson that the Icelandic economy is under attack, and will call for information to investigate the matter.

Director of FME Jónas Fridrik Jónsson said the authority aims to find out whether negative rumors are being distributed in an organized manner by individuals hoping to benefit from it. About one week ago the Irish financial supervisory authority launched a similar investigation, Vidskiptabladid reports.

“This investigation is in the absolute beginning phases and we have yet to evaluate the indications that we have. It is not easy to launch such an investigation and parts of it may have to take place in other countries. We still have to find out who we should interview,” Jónsson said.

Jónas Sigurgeirsson, Director of Investor Relations at Kaupthing Bank, told Vidskiptabladid that the bank is looking into legal recourse against individuals who are suspected of illegal intervention in the bank.

Sigurgeirsson mentioned the US bank Bear Stearns in that context; three of its staff members and four of its clients visited Kaupthing Bank in January, and Kaupthing suspects they may have planned to benefit from the plummeting of value of Icelandic stocks and the depreciation of the ISK.

Yesterday, visir.is reported on a black report on the Icelandic economy from Bear Stearns, dated February 29, where Iceland is compared to Kazakhstan. The conclusion of the report is that there is a much higher risk of the Icelandic banks going bankrupt than the banks in Kazakhstan.

Similar cases have also been investigated abroad, where suspicions have arisen about negative rumors being spread on purpose to encourage a plummet in value.

Oddsson said in his speech at the general meeting of the Central Bank on Friday that a negative-rumor campaign had caused damaged to the British bank HBOS and that it is currently under investigation at the British financial supervisory authority.

Click here to read more about Oddsson’s speech.

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