Gunnar Andersen, the former director of Iceland’s Financial Supervisory Authority, was today found guilty of violating bank secrecy by gathering financial information on one of the country’s lawmakers.
Iceland’s state prosecutor indicted Gunnar Andersen, the former head of the island’s Financial Supervisory Authority, for violating banking secrecy by gathering information on one of the country’s lawmakers.
The head of Iceland’s financial watchdog, Gunnar Andersen, questioned the motivation behind an investigation into his ability to lead the regulator that last week prompted its board to seek his resignation.
Iceland’s creditor-controlled banks face a second round of failures as a court ruling depletes their capital while the government and pension funds balk at providing additional financing, according to regulators and investors.
Iceland’s Financial Supervisory Authority moved to fire Gunnar Andersen, the watchdog’s chief executive, following an internal probe into his prior involvement with offshore holding companies owned by failed lender Landsbanki Islands hf, according to the FSA’s chairman.
Iceland’s parliament may block any government attempt to recapitalize the island’s banks after a court ruling threatened to leave some lenders insolvent, opposition party leaders and coalition members said.
Iceland’s government said it’s a long way off defaulting on its debt payments after Moody’s Investors Service warned it may lower the island’s credit grade to junk, arguing lenders could require state support.