The primary proceedings in the case of Sigurjón Þ. Árnason, one of Landsbanki’s two former CEOs at the time of its collapse in October 2008, against the bank over his pension savings are currently ongoing at Reykjavík District Court.

“The claimant is not considered good company today. He has had to endure telephone tapping and custody sentences […]. He is the materialization of Icesave and is considered a rather right-less man in Icelandic society,” commented Sigurjón’s lawyer Sigurður G. Guðjónsson, according to visir.is.

Sigurjón is demanding the recognition and the release of a special pension savings fund he had at Landsbanki, currently at ISK 566 million (USD 4.5 million, EUR 3.5 million).

Landsbanki wants to dissolve the savings at the demand of the Financial Supervision Authority (FME), as the savings arrangement is considered to be illegal.

In that regard, the FME pointed out that a loan was granted from Sigurjón’s private pension fund to himself with two mortgage deeds with his own house as collateral, worth a total of ISK 70 million (USD 567,000, EUR 432,000), in November 2008.

After filing charges against Landsbanki, Sigurjón had an injunction placed on Landsbanki’s actions on this matter but the bank now wants the injunction lifted. Sigurður reasoned that there are now laws against such pension fund loans.

Meanwhile, Landsbanki is suing Sigurjón for damages.

iceland