Bloomberg News

Iceland Top Court Says Kaupthing Ex-Employee Must Repay Loan

May 10, 2012

Iceland’s Supreme Court ruled that a former employee of Kaupthing Bank Hf be held personally liable for loans she received from the failed lender.

Delia Kristin Howser, who worked at a local branch, was found liable for a 6.6 million-krona ($52,000) loan she obtained to purchase the bank’s shares, according to the ruling.

Kaupthing’s board in a letter dated Sept. 28, 2008, had sought to revoke personal liability on loans given to a number of executives in connection with stock purchases. The decision was taken following a drop in the share price. Kaupthing collapsed on Oct. 9, 2008, after it was unable to secure the short-term funding needed to stay afloat.

The bank’s resolution committee has made similar claims against a number of former executives, including then Chairman Sigurdur Einarsson, former Chief Risk Officer Steingrimur Karason and the bank’s Ex-Iceland CEO Ingolfur Helgason.

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

To contact the editor responsible for this story: Jonas Bergman at jbergman@bloomberg.net


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