Former director of Kaupthing Bank, Hreidar Mar Sigurdsson, has sent a letter to the Icelandic Prime Minister complaining about the Icelandic Financial Supervisory Authority.
In the letter he says that British financial regulators have concluded that neither he nor his close colleagues broke any laws in connection to their work with the Kaupthing subsidiary in London. He goes on to demand government action against the poor working methods of the Icelandic regulator.
Sigurdsson’s letter bears a Luxembourg post mark from four days ago and was sent directly to the Prime Minister’s office, Visir.is reports.
The Icelandic finance and trade ministers have been provided with copies of the letter, as well as the special prosecutor into the banking crisis and the current head of the Financial Supervisory Authority of Iceland.
The main point of the letter is to underline for the Icelandic authorities the British authorities’ conclusion that Sigurdsson and his colleagues did not break any laws in their dealings with Kaupthing Singer & Friedlander in London.
In comparing the actions of the two countries’ financial regulators, Sigurdsson says that he had countless meetings with the FSA in London; but that the Icelandic FME seems to spend all of its time poring over emails looking for evidence of crime instead of talking to the people involved. He says he was not once called to the FME in person in the run-up to the bank’s collapse.
He closes by saying that the differences in professionalism and experience between the two countries’ regulators is stark and that the Icelandic FME is by far the worse.
The FME is still looking into alleged wide-ranging criminal activity at Kaupthing and is helping the Special Prosecutor with his investigation. Criminal court proceedings are considered likely.