Icelandic Judiciary Imposes Massive Prison Sentences on Bankers Involved in 2008 Financial Collapse

Overview

In Reykjavik, Iceland, a local news outlet, Fréttablaðið, reported that 36 Icelandic bankers, mostly linked to the infamous 2008 banking system collapse, have been sentenced to a collective prison term of 96 years.

Sentences for individual banks

• Kaupþing: Eleven former employees of Kaupþing, including its ex-director Heiðar Már Sigurðsson, received a combined total of 35 years in prison sentences.
• Glitnir HoldCo: Seven former individuals from Glitnir HoldCo were sentenced to serve 25 years collectively.
• Landsbankinn: Previous directors of Landsbankinn were handed sentences totaling 13 years.

Individual sentences

• Heiðar Már Sigurðsson: The most high-profile sentence was given to Heiðar Már Sigurðsson, former director of Kaupþing. He received a seven-year sentence.
• Lárus Welding: Former director of Glitnir, Lárus Welding, has been sentenced provisionally to six years in prison, but his sentence could potentially increase as more trials connected to the financial collapse are ongoing.

Dissolution of the Office of the Special Prosecutor

With the conclusion of the investigation into the 2008 banking system collapse, the Office of the Special Prosecutor plans to be dissolved shortly as it was initially formed to address the massive criminal probe.