Former Kaupthing bosses are among those arrested

Steve Dinneen
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TWO other men understood to have been arrested in London as part of the investigation into the Kaupthing collapse are Armann Thorvaldsson, former head of Kaupthing’s UK business and Sigurdur Einarsson, who was Kaupthing’s London-based executive chairman and chief executive.

Einarsson briefly featured on Interpol’s wanted list before travelling back to Iceland to be grilled over allegations of market manipulation.

Two men were also arrested in Iceland, and the total number of people arrested was nine.

Icelandic authorities are running a parallel investigation into the collapse of Kaupthing. A source close to the SFO told City A.M. the two countries are working closely together.

Iceland’s main commercial banks – Kaupthing, Landsbanki and Glitnir – collapsed in the space of a week under the weight of huge debts racked up during years of aggressive overseas expansion.

In January, Iceland’s Special Prosecutor’s Office searched several financial institutions, including the central bank, as part of a criminal investigation into the collapse of Landsbanki.