“I, the undersigned Bjorgolfur Thor Bjorgolfsson, offer my apologies to all Icelanders for my part in the property and debt bubble that led to the collapse of the Icelandic banking system. I apologise to you all for complacency in the face of the red flags that were going up all around. I apologise for having not followed my instincts when I became aware of the risks. I apologies to you all.” Read the full story

The former head of Straumur investment bank, William Fall told Icelandic television last night that if his claim for withheld wages to the bank’s resolution committee is paid out, the money will be given to charities in Iceland. Fall has claimed ISK 640 million in backdated wages. The matter has been sent to the Reykjavik District Court. Read the full story

PRESS RELEASE FROM STRAUMUR BURDARAS BANK:

On 19 March, 2009 Straumur Burdaras Investment Bank hf. (Straumur) requested an authorisation for a moratorium process from the District Court of Reykjavík. The process would enable Straumur to facilitate a financial and operational restructuring in co-operation with the bank’s creditors. Read the full story

The state-run Icelandic Housing Finance Fund was by far the biggest depositor in Straumur Burdaras investment bank, which was taken over by the FME financial regulatory body yesterday morning, it has now emerged. Read the full story

The stay of the International Monetary Fund delegation in Iceland was due to end today, but has now been extended to Friday. Mark Flanagan, who leads the delegation, will meet with media representatives on Friday, mbl.is reports.

The main reason for the extension in the IMF stay is apparently yesterday’s nationalisation of Straumur Burdaras Bank. According to Kristjan Kristjansson from the Prime Minister’s office, the Straumur issue took up a large part of the delegation’s time over the weekend. In addition to this, the delegation’s official work also proved more complicated and time consuming than had originally been allowed for.

PRESS RELEASE FROM STRAUMUR BURDARAS BANK:

In spite of its strong capital position and the support of funding banks Straumur Burdaras Investment bank hf. (Straumur) believes that its liquidity position is no longer strong enough to sustain its activities. Read the full story

Straumur Burdaras, Iceland’s biggest investment bank, has announced plans for a special fund to support and develop businesses in Iceland during the current kreppa (recession). Read the full story

Whilst many financial spectators have been advising Icelandic banks to proceed more cautiously this year, the main Icelandic banks have not stopped in their acquisitions on the global market.

Icelandic banks were in financial turmoil in early 2006 but that hasn’t stopped Iceland’s biggest bank, Kaupthing, from buying up Dutch merchant bank NIBC, this summer. The deal cost Kaupthing $4.2 billion dollars but neither that, nor the current credit crisis seems to have slowed the bank down. Kaupthing currently has its eyes on Norwegian insurance company, Storebrand.

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