Glitnir joins Kaupthing as Icelandic bankers come under further scrutiny

glitnir-logoGlitnir Bank’s dissolution committee members today described what they called the robbery from within of the bank by Jon Asgeir Johannesson and his “clique”. Seven have already been served by a New York court and more will likely follow.

Glitnir Bank’s dissolution committee held a press conference today where details were given of the subpoenas issued in New York to seven former bosses and investors in the bank. Glitnir is also suing PricewaterhouseCoopers, RUV reports.

Iceland has already frozen the assets of Jon Asgeir Johannesson, Palmi Haraldsson and Thorsteinn M. Jonsson and a London court has ordered the freezing order on Jon Asgeir to be upheld internationally as well. He has not been formally served the papers yet, despite efforts to find him, dissolution committee chairwoman Steinunn Gudbjartsdottir said.

Jon Asgeir refused to give away where he currently is in a telephone interview with Bloomberg this afternoon, but described recent events as “a left hook” which it is pointless to spend millions of kronur trying to defend against – especially with all his assets frozen. “They have won,” he conceded; adding that it is all politics and not based on facts. Political figures including David Oddsson are behind the lawsuit, Johannesson believes.

Glitnir’s move to recoup cash from its former masters comes in the same week that Iceland’s Special Prosecutor began arresting key players from Kaupthing Bank. It is important to point out that Glitnir is pursuing civil actions, while the Special Prosecutor is a criminal investigator.

The Glitnir committee is handing all evidence over to the Special Prosecutor however, and criminal prosecutions could also take place.

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