Left-Green MP: Savings Banks’ Affairs Were Messy Skip to content

Left-Green MP: Savings Banks’ Affairs Were Messy

By Iceland Review

Left-Green MP Atli Gíslason, who has a seat on the Althingi parliament General Committee, describes the affairs of the fallen savings banks as messy. He is calling for a public investigation of their collapse.

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Atli Gíslason. Photo by Páll Kjartansson.

National broadcaster RÚV has recently been covering the work methods of the savings banks Sparisjódurinn í Keflavík and Byr in the events leading up to their collapse.

On Wednesday it was reported that private limited companies connected to the owners and executives of Byr owed the savings bank approximately ISK 28 billion (USD 239 million, EUR 176 million) in November 2008, shortly before it collapsed, yet paid its owners almost ISK 14 billion (USD 119 million, EUR 88 million) in proceeds a few months earlier, ruv.is reports.

Recently, Kristján Gunnarsson, the former chairman of the board of Sparisjódurinn í Keflavík, resigned as the chairman of the Federation of General and Special Workers in Iceland (SGS) following RÚV’s coverage of the Financial Supervisory Authority’s black report on the savings bank’s work methods and a highly controversial employment termination agreement with the bank’s director, which Gunnarsson signed.

Gíslason said it is important to launch an official investigation into the collapse of the savings banks immediately. In fact, it should have been launched sooner as was recommended in the Special Investigative Commission’s report on the banking collapse in Iceland, which was published in April 2010.

The MP said the case has been stalled because a bill on investigative commissions in general is pending at Althingi. The bill is currently in the hands of the General Committee, which will complete its treatment of it shortly.

He is hoping that an investigation can be launched in March, adding that all MPs are onboard with it.

Click here to read more about the affairs of the two savings banks.

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