| The loans to the employees of Kaupthing not written off |
| Tuesday, 16 June 2009 10:14 |
  The board of New Kaupthing bank are not going to write off the loans to the banks employees for stock purchases while the lawsuit of share holders because of the loans is being processed by the special D.A. The loans are still in the books of the bank and have not been written off. This is written in the statement from the board of the bank. There is a reference to the opinion of two outside lawyers, Vidar Mar Matthiasson, legal professor from November 12th last year, and Hordur Felix Hardarson from January 15th and March 3rd 2009, where says that the board of New Kaupthing bank does not have the legal authorizations to revoke the personal liabilities of the employees of the loans for purchasing stocks. "The pre history is that the board of old Kaupthing decided on September 25th 2008 to write off all personal liabilities of the employees of the bank because of loans for purchasing stocks. This write off of personal liabilities was in total 10,5 billion króna. Close to half of that write off or around 4,9 billion króna was a write off of personal liabilities of seven former highest CEO´s of the bank. The loans are in total 47,3 billion króna for 130 employees. The majority of the loans were to individuals but a part of them were to holding companies owned by employees. A part of the loans were insured with personal liability, but a large part of them were only insured with collateral in the stocks themselves," says in the announcement from the bank.
News Article by noname Translated by Anya Original Article in Icelandic
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