SFO puts Landsbanki in investigation spotlight

Britain’s Serious Fraud Office is widening the scope of its investigation into the Icelandic banking crash and will now also pay close attention to Landsbanki.

The Telegraph reports that the SFO investigation into the bank will mostly focus on the actions and decisions of top tier management in the run up to its bankruptcy in October 2008. Landsabanki left behind it a debt of GBP 2.3 billion to investors and savers in the UK.

SFO specialists will analyse the flow and transfer of Landsbanki funds which were largely made up of savings held in Icesave.

The investigation is being carried out in co-operation with investigators in Iceland and Luxembourg, where Landsbanki was very active before the crash.

The newspaper summarises the findings made in cases against Landsbanki, Glitnir and Kaupthing so far; saying that the banks’ main owners were able to take money almost at will and that huge loans were granted for share purchases in the banks themselves — an action designed to artificially inflate the share price.

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