Daniel Thordarsson, former Kaupthing asset manager and Stefnir Ingi Agnarsson, former Kaupthing stock broker, were this morning sentenced to eight months in prison by the Reykjavik District Court.
The pair was charged with putting in offers to buy Exista shares six times in January and February last year shortly before the close of business, so that the offers would affect the end-of-day value of Exista shares. The charges were of submitting false purchase enquiries and of share price manipulation.
Both men denied both charges; but with the guilty verdict, they were also ordered to pay fines of ISK 1.2 million. The judgements are non-probationary.
2 down, 894 more to go! Work it!
Fisy (and others of a doubtful frame of mind) -
I have posted in the past about the relationship between Exista and Kaupthing, and that good analysts can show those links working. This case is a great example of rather simple-minded people trying to manipulate markets. You can see these things happening.
The general point is an interesting one – and is not one that is addressed too often outside financial circles – and it is this: the entire valuation of a financial instrument is determined by the last trade in that instrument. So if a 87 year old retired man in North Wales sells just 100 British Airways shares for a certain amount – then every British Airways share in the world is assumed to have that same value whoever holds the shares. So a sovereign wealth with a few hundred million pounds worth of those shares can find that the entire valuation is altered by that little old man. Normally, this doesn’t matter since during the day markets are very active. The valuation imposed by the little old man will usually last a microsecond. (This is one of the arguments against “mark to market” valuations. I happen to think that “mark to market” valuations are the best that you can do, not perfect, but the fairest and most unbiased method – everything else is guesswork.) But, if you have a thin market, and you wait until the very end of the trading day and then start trading in the shares you can usually force them to a particular price as the market shuts. That closing price is then the number used to value the shares. This is what these two idiots did. It is illegal (as they have found out). How the hell they thought the authorities couldn’t spot this sort of manipulation is beyond me! It’s one of the easiest things to see – even without the information on the trades, you can see when people come into the market 30 seconds from the close, and start making multiple trades at strange prices.
eight month ?,out in five,a nice little holiday for them, thats a slapp on the wriste
Icelandic government tos should condemn those who will lead the country to ruin and telling them to pay any injury caused
Well thats a start. Lets see the big boys in there next. The Icelandic prosecution service should remember that the eyes of the world- or at least the eyes of the Isle of Man – are on them. Parental Guarantee – my Asgeir!
“rather simple-minded people trying to manipulate markets”
Or, people trying to manipulate rather simple-minded regulators and markets.
i never thought thats how idiot icelandic rules are,eight months thats nothing more than what the other people did in crimes,this matter of think is too much to show a disrespectful to poor icelanders i feel so sorry to our society now and then…,we have nothing to show to our kids except being ashame that they come to this nonsence governtment…..people should do something not just hiding and keeping there anger inside nor than showing them whats the wises way to solve it…..governtment is just cheater….
Sounds like the culprits left their calling card on that stunt.
>.. were this morning sentenced to eight months in prison by the Reykjavik District Court.
Good. After trial with evidence the judge found them guilty and so did order them jailed.
That is how things should work.
>The charges were of submitting false purchase enquiries and of share price manipulation.
I have not read court transcript but we can assume that eviednce shows they were doing this to change the closing price for benefit of manipulation.
As Eva Joly did say it is important to go after the worst offenders — the people who did the most clear violations of law and ethical behaviors — where the malfeasance is clear.
So we can assume that this case fits that.
Fisy
>I have not read court transcript but we can assume that eviednce shows they were doing this to change the closing price for benefit of manipulation.
Even I, having read Mikes posting could have said that. Damnation, must be quicker next time! : )
Typical scapegoats to calm the humors!!
This is just all a great theater to make icelanders believe that the law system is working. BULL!!! where are the BIG mafia men?
Its to early to tell how this will go, this will go to high court and no one knows what will happen there, those guys are small fish and most likely did what they did by orders from some one higher ranking in the bank,
the old gov had something called “Karamellu fundur”
(Caramel meating) fridays to find a good story to calm the people, give them something to chew on so they would be quiet, some thing like the duck pond story from the expences scandal,
this temporary sacrifice of two pawns reminds me of that, it takes quite a lot more to convince me.
Congratulations professor SIR EURO, you have finally learnt how to “transform” a text after you have read and checked it in caps. Now it’s a pleasure to read your posts…or…..is it?
Kudos to the teacher!!
Terry did write :
>Even I, having read Mikes posting could have said that. Damnation, must be quicker next time! : )
Maybe you do not know the idea ” great minds thing alike “.
But it seem you do know the idea “good artists copy great artist steal.” though.
As moderation here is slower than dripping mollases there are many times that people post before they read another post even if it loosk like they did read it.
Yes, congratulations to SIR EURO’s discovery of the Caps Lock key. And he also submitted a concise comment. Maybe his New Year’s resolutions started early.
>Yes, congratulations to SIR EURO’s discovery of the Caps Lock key. And he also submitted a concise comment.
Like it was not the real Jim I suspect it is not the real SIR EURO..
But if it is then congratulation Gus on getting self a nice new girl friend that does give meds on time and type for you.
Jimbo writes:
““rather simple-minded people trying to manipulate markets”
Or, people trying to manipulate rather simple-minded regulators and markets.”
Hey Jimbo, I can take the point about the regulators (they are always the last to find out), and especially the ineffective group called the FME in Iceland, but I really do take the gravest offence at “markets”. That’s me and my pals, you’re talking about!!
Don’t you know “markets” never get it wrong? :-)
(Seriously, nice point Jimbo, I like it.)
It’s him Fisy. See EUROKING for the change.
“That’s me and my pals, you’re talking about!!”
And myself – I spend far too many hours in a tall building in Docklands…