Top Icelandic bankers indicted on charges of €100m fraud

ICELAND’S special prosecutor issued indictments yesterday against two former top executives of collapsed Glitnir Bank, claiming they committed fraud by issuing an unauthorised loan of more than €100 million in early 2008.

The two executives, former Glitnir chief executive Larus Welding and head of corporate finance Gudmundur Hjaltason, are charged with abusing their positions by lending an investment firm some ten billion Iceland Krona — then worth around €102m — without any collateral and without consulting the bank’s risk management board.