Bloomberg News

Iceland Financial Investments Board Resign Over ‘Interference’

October 24, 2011

Oct. 24 (Bloomberg) -- The board members of Icelandic State Financial Investments have resigned following “outside interference” with their Sept. 30 decision to hire Pall Magnusson, the former political adviser to the island’s industry minister, as chief executive officer.

“The reaction of lawmakers indicate that it will be difficult for the institution to carry out, in the required manner, the important and difficult tasks it’s meant to oversee,” the board said in an e-mailed statement. “It’s fundamental” that the board “enjoys full support and can operate independently as required by law.”

The government body oversees the state’s shares in Iceland’s three banks, Landsbankinn hf, Islandsbanki hf and Arion Banki hf. The north Atlantic island’s government holds an 81 percent stake in Landsbanki, 13 percent in Arion and 5 percent in Islandsbanki.

--Editor: John Simpson

To contact the reporter on this story: Omar R. Valdimarsson in Reykjavik valdimarsson@bloomberg.net

To contact the editor responsible for this story: Tasneem Brogger at tbrogger@bloomberg.net


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