Oskar Hrafn Thorvaldsson, the News Director at Stod 2 TV, Bylgjan Radio and the Visir.is news website has resigned over a news story released last July.
Thorvaldsson called a last-minute staff meeting yesterday morning to bid his journalists farewell. The resignation is said to come directly because of yesterday’s formal withdrawal of a news story from last summer on in the wake of a recent court ruling. The original story concerned alleged transfers of large sums of money out of Iceland immediately before the banking collapse by father-son businessmen Bjorgolfur Gudmundsson, Bjorgolfur Thor Bjorgolfsson and other close parties.
Visir.is, Stod 2 and Bylgjan are all owned by 365 Media, which is owned by the family of Jon Asgeir Johannesson. Johannesson’s wife, Ingibjorg Palmadottir is registered as the company’s biggest shareholder.
Stod 2 has been (perhaps) surprisingly quick to criticise its owners and their business dealings. Even this week, Stod 2 and Visir were reporting that tax authorities have completed freezing Jon Asgeir and other FL Group former owners’ assets after promising to do so earlier this year.
Two weeks ago Stod 2 reported on two 10-year bullet loans allegedly obtained by 365 Media owners secured on already over-leveraged property. The loans equalled ISK 440 million (USD 3.4 million). The news outlets’ owners responded harshly to the news and Jon Asgeir described it as an outright lie.
Given Oskar Hrafn Thorvaldsson’s turbulent relationship with his employers, he could not expect their unequivocal support and so decided to resign. The question is now, who will replace him?
It was Erik the Red who first perfected the "bait and switch." He named the rocky wasteland to the north "Greenland" to lure potential settlers, while he called the more lush and tranquil spot to the east "Iceland." Brutal savages, those Vikings, but exceedingly clever in the realty arts.
The tax inspector is currently investigating extensive tax evasion practiced by most of the Icelandic “outvasion Vikings” and other main players of the Icelandic economy in the lead-up to and the aftermath of the banking collapse in October 2008.
Iceland’s so-called Black Report into the banking crisis was discussed all day yesterday in parliament and heated exchanges will continue today.
The deputy chair of the parliamentary budgetary committee was one of several MPs to harshly speak out against the president for his role in the collapse.
All of parliament seems to be united in support for the report and respect for its authority – but their interpretations of it are split largely along party lines.
Among the final speakers last night was deputy chair of the parliamentary budgetary committee, Bjorn Valur Gislason, who harshly criticised President Olafur Ragnar Grimsson and his staff. He said that Grimsson had conscientiously extolled the virtues of the “Outvasion Vikings” who in turn became like old family friends at Bessasstadir, the presidential residence.
The previous government of Geir H. Haarde also came in for criticism. The report says that important decisions were often badly informed. Ministers did not give essential information to Althingi, often because they did not have it themselves. One conclusion drawn was that key figures within government simply did not trust one another.
Current Prime Minister, Johanna Sigurdardottir told Althingi yesterday that much of the information in the report is a harsh indictment on the authorities.
Three parliamentary committees have been tasked with examining the report closely and recommending improvements to the political structure. At least one of the committees is expected to hand its findings over within three weeks.
As could be expected yesterday’s release of the report into the banking collapse, commissioned by the Icelandic parliament, drew different reactions from different people.
Bjorgvin G. Sigurdsson, Iceland’s former Minister for Commerce, was one of those personally singled out for criticism. He reacted by resigning his post as chairman of the parliamentary group of Social Democrat MPs and called publicly for a national ‘high court’ to be called together to pass judgement. Sigurdsson was singled out for being negligent; but the report also stated that he had been deliberately kept in the dark on many important issues by others in government and the central bank.
Former Prime Minister Gier H. Haarde was another singled out for having been negligent and RUV reports that he could technically face two years in jail if the aforementioned ‘high court’ is called to session. Haarde said, however, that he has no fear of such a court. He told media that the report is very clear that by far the biggest share of blame must be laid with the banks themselves and their irresponsible business practices. He said the report shows the banks were already beyond saving in 2006.
Former Central Bank head David Oddsson is out of the country and was not interviewed.
Left Green leader Steingrimur J. Sigfusson told parliament that the report is the story of how Iceland’s cherished Nordic welfare state had been robbed by those wielding imported free-market, low regulation ideals. He also joined the report in criticising President Olafur Ragnar Grimsson for having been a cheerleader for the Outvasion Vikings and taking personal profit (not in direct payment) from their business practices.
Current Prime Minister Johanna Sigurdardottir said she took from the report that the banks had been run for the benefit for their biggest shareholders with scarcely a thought for customers or the average shareholder.
Frumtak, a united investment fund run by Icelandic pension funds and banks, has confirmed that it has bought shares in the Icelandic computer games maker Gogogic for ISK 150 million (USD 1.2 million).
A statement reveals that Gogogic specialises in smaller games and the creation of multimedia for the internet. Eggert Claessen, the head of Frumtak, said that the new investment will help Gogogic to improve its marketing efforts overseas.
Gogogic is currently best known for its Vikings of Thule game which is very popular on Facebook.
Frumtak is run by the New Business Venture Fund, which is supported by six of Iceland’s biggest pension funds and the three biggest banks. The fund invests in innovative companies with good growth and export potential. Companies must already have their products available on the market to be eligible for the fund.
The Northern Lights are without a doubt one of nature’s most incredible sights, they were even perceived as shield reflections of the Valkyries by the Vikings according to Norse mythology. During a clear and crisp night in Iceland, you can see the beautiful green and pink aurora shimming across the sky.
According to scientists, the strength of the Aurora Borealis is based on the amount of sunspots occurring on the sun’s surface, of which follow an 11-year cycle. Scientists believe that 2010 is the best time to view the Northern Lights, as this cycle is soon to peak, intensifying the Aurora magnitude.
Due to the volume of Northern Lights, Grand Hotel Reykjavik is offering the amazing ‘Grand Aurora’ package deal, giving visitors the chance to view them from the comfort of a candlelit terrace room. Visitors can relax with a glass of champagne or beer in the luxury terrace, located on the 14th floor, and experience some Icelandic delicacies, such as smoked lamb on rye cake and rams testicles on rye bread, then followed by Skyr fantasy; all under the watch of the Northern Lights.
The ‘Grand Aurora’ package is available from October until the end of March.
Welcome to our new feature on the ways that the airlines are making you more comfy and less cranky this holiday travel season-" Celebrating In The Skies ." Some airlines just want you to sit down and shut up, but these-thanks to extra treats and smiles-will show you how much they appreciate your flying with them.
Although for a decade or so Iceland had imagined itself to be at the centre of the prosperous world, the crash propelled it back into the remote North Atlantic. Its pride was hurt. Icelanders were conscious that they had been steered incompetently and corruptly into the abyss. Yet the political class showed no remorse. David Oddsson — the head of the central bank, who as prime minister had presided over the privatisation of Iceland’s state-owned banks — was quick to blame the magnate Jon Asgeir and the oligarchs; Jon Asgeir blamed both the US for letting Lehman collapse and Oddsson for not responding intelligently; the Icelandic Government blamed the British Government.
At first glance I was surprised to see the section where the Times placed this article. Then after reading it I understood why. It is yet another spin on the tale that Icelandic women are now cleaning up the mess left by Icelandic males. In that context it is especially disturbing to see Audur Capital mentioned as the only Icelandic investment company that managed to escape the crisis. Halla Tomasdottir, who was very active in the boom years, for example in the Chamber of Commerce that ordered the Mishkin Report and Kristin Petursdottir, former top management of Kaupthing must have the best PR person in the world at their service for the Times is not the first foreign media to eat their story raw. Although the business vikings were mostly males, there were plenty of women at work on the Icelandic economic miracle. Iceland is divided enough as it is, that it does not need such a division between the sexes as well.
God Bless Iceland, the documentary by Helgi Felixsson is released next week.
Helgi has been doing the talk show and radio rounds in Iceland, and according to him Jon Asgeir Johannesson is telling him to cut and destroy all scenes where he was involved.
A special screening will be held for the business-vikings and members of Althingi next week.
I can only imagine what Quinten Tarantino would dream up with that scenario.
It is an old adage which I’ve found interesting to ponder in the last few years. Invariably when talk comes to failing Icelandic businesses or the personal finance of Icelanders, some smart-ass always comes up with a sarcastic comment to the tune of;
“Oh, Icelanders cannot handley money”
Cue approving laughter.
This adage has become so imprinted in the national conciousness that it has almost become a truth. Much like the one where we are all supposed to stem from heroic vikings, or that we are prettier and stronger than everyone else because a couple of Icelanders have won a Miss World or Strongman competition or two. Let’s not forget the best water in the world (which is quite good but who in their right mind can slap a label on the best WATER?) and the lamb meat of course.
Cynical I know but the one about not being able to handle money is interesting. As proof, the much quoted frugality of Norwegians and the supposed German national hobby of saving money is used for comparison.
And there is some truth to the myth, Icelanders are notoriously bad at saving (possibly because of historic inflation problems), and more prone than most comparable nationalities at getting overdrafts and buying stuff on credit. It would seem Icelanders are more risk-taking than many other nations when it comes to personal finance.
Then yesterday at a lecture which revolved around the cultural influence that the US Naval base in Iceland had on the country the thought popped into my mind of whether that could be the root of how Icelanders approach their personal finances.
We are in fact very similar to Americans in these matters. Much more so than we are similar to the Europeans. According to USA Today the average American household carries over $10.000 in credit card debt, while Icelanders owed more than 600.000 ISK in overdraft each a couple of years ago. Buying on credit, not saving much, consumption oriented, future thinking…sound familiar? Credit crunch, banks collapse, state bailouts and sub-prime mortgages…sound familiar?
A young woman who was one of the people responsible for the lecture even suggested that the generous loans extended to Icelanders by the US in the past could be a source of the “þetta reddast” attitude, famous with Icelanders. (means don’t worry, things will take care of themselves. Used frequently by Icelanders when confronted with troubles of all kinds.)
Whilst most of the cultural-elite’s concern for American cultural influence has concentrated on cheesy TV programs and bubble gum pop music, the influence on Icelanders attitude towards their personal finances might be the most important one.
Friends and Britney Spears have never caused any Icelanders the loss of their home as far as I know.
PS: Michael Moore, that cheesy cultural icon has theorized in his movies, especially Sicko that a society that encourages its citizens to assume much debt and preferrably quickly is one where people have more to lose than elsewhere by protesting against governments or corporations. So they are less prone to rising up. Sound American to you? Or Icelandic?
The government of Iceland agreed yesterday to start preparing a lawsuit against and demand compensation from individuals, associations and companies which caused financial damage to the Icelandic state and the Icelandic public in the events leading up to the banking collapse.
A new exhibition entitled “Alrún” opened recently at the National Museum of Iceland, displaying jewelry decorated with runes by jewelry designer Jón Bjarni Baldursson. His designs are based on jewelry work by Vikings, inscribed with runic letters.
The total loans of failed Icelandic bank Landsbanki in the United Kingdom to fellow Icelandic businessmen amounted to a minimum ISK 130 billion of a total loan portfolio of around ISK 730 billion.
By far the biggest single loan paid out by Landsbanki UK went to Novator Pharma, a company owned by Bjorgolfur Thor Bjorgolfsson (son of Landsbanki’s biggest shareholder) and companies associated with Baugur Group (huge retail chain with Icelandic media empire including Stod 2 and Frettabladid), Stod 2 News reported.
The majority of money loaned went to non-Icelandic businesses; but by far the biggest individual loans all went to Icelanders. For example, Novator received a loan from Landsbanki in the UK for GBP 205 million, whereas the highest loan to any non Icelandic company was GBP 58 million.
Novator’s outstanding debt to Landsbanki stands at ISK 40 billion and the debt of Baugur Group and associated companies is ISK 58 billion. The loan to Novator was taken to finance its takeover of Actavis, which is now responsible for the loan.
According to Frettabladid sources within Landsbanki, the loans to Novator and Baugur were secured with the best possible collateral the companies had to offer at the time. Of the total loans given out by Landsbanki in the UK, Icelandic companies got 18 percent.
Frettabladid sources point out that the figure is reduced to 12-15 percent if the loans from Heritable Bank are included. Heritable was a Landsbanki subsidiary which only loaned to British companies.
In the meantime, the agreement reached with Dutch and British authorities over Icesave reimbursements was greeted with hostility by the opposition in parliament yesterday and by protesters outside.
While the contract commits the government and the Icelandic people to shoulder the responsibility for Icesave, the liquidation of Old Landsbanki assets in coming years is hoped to cover much of the debt. The amount of debt held by failed Icelandic investment companies is, therefore, of direct consequence to all Icelandic residents.
Oskar Hrafn Thorvaldsson, the News Director at Stod 2 TV, Bylgjan Radio and the Visir.is news website has resigned over a news story released last July.
The tax inspector is currently investigating extensive tax evasion practiced by most of the Icelandic “outvasion Vikings” and other main players of the Icelandic economy in the lead-up to and the aftermath of the banking collapse in October 2008. 
Iceland’s so-called Black Report into the banking crisis was discussed all day yesterday in parliament and heated exchanges will continue today.
As could be expected yesterday’s release of the report into the banking collapse, commissioned by the Icelandic parliament, drew different reactions from different people.
Frumtak, a united investment fund run by Icelandic pension funds and banks, has confirmed that it has bought shares in the Icelandic computer games maker Gogogic for ISK 150 million (USD 1.2 million). 
The 
The government of Iceland agreed yesterday to start preparing a lawsuit against and demand compensation from individuals, associations and companies which caused financial damage to the Icelandic state and the Icelandic public in the events leading up to the banking collapse. 
A new exhibition entitled “Alrún” opened recently at the National Museum of Iceland, displaying jewelry decorated with runes by jewelry designer Jón Bjarni Baldursson. His designs are based on jewelry work by Vikings, inscribed with runic letters. 
The total loans of failed Icelandic bank Landsbanki in the United Kingdom to fellow Icelandic businessmen amounted to a minimum ISK 130 billion of a total loan portfolio of around ISK 730 billion.