Documents obtained by journalists at the media company 365, show that in the last few days leading up to the collapse of the Icelandic banking system in October 2008, the Chief Justice of the Supreme Court, Markús Sigurbjörnsson, sold more than 10 million ISK (equal to 100,000 USD at the exchange rate at the time) of his holdings in “Sjóður 9” a highly controversial money market fund operated by the collapsed Bank Glitnir.
Refused to recuse himself
The timing of the sales, which took place after the Icelandic government had begun preparing the emergency legislation passed as the banks collapsed and only days before the banking system collapsed, and his significant losses on investments with Glitnir, raises questions of Markús‘ judicial qualification to rule on cases relating to the collapse of the banking system, especially cases involving the collapsed bank Glitnir, the local news site visir.is reports.
Markús has not recused himself from any of the cases involving collapsed bank Glitnir, or any of the other post-crash cases which the court has heard in the past years.
Four high-profile cases involve the collapsed bank Glitnir and its chief executives. In one the three top executives and a broker were convicted of breaches of fiduciary duty, market manipulation and violating accounting laws. Markús was a member of the banc of five judges who sentenced the four, two of which had worked in the department which handled Markús‘ account.
Extensive business dealings
Markús‘ business dealings with Glitnir in the years leading up to the crash were quite extensive. At the end of 2003 Markús owned one million shares in Íslandsbanki, which later became Glitnir. In 2007 Markús sells his shares for roughly 44 million ISK (700,000 USD). He then invested these funds, and an additional 17 million ISK in funds managed by Glitnir. By the beginning of August 2007 his holdings were estimated at 65 million ISK (1 million USD).
Markús’ investments were managed by the wealth management unit of Glitnir. At his request the investment strategy was rather aggressive. However, in 2008 Markús began transferring his investments into safer funds, continuing to liquidate his more risky holdings until the banking system collapsed. A few days before Glitnir‘s eventual collapsed, Markús managed to transfer at least 15 million ISK out of the money market fund Sjóður 9.
According to law judges are not allowed to have any significant business investments which could raise questions about his impartiality or jeopardize his judicial qualifications. Judges must receive a special waiver for investments from The Commission on Judicial Qualifications.
Problematic timing of sales
The timing of the sales raises questions, as information about the imminent collapse of the banking system was by that time beginning to seep out among the highest rungs of the civil service. Markús told visir.is in a written statement that he had disclosed all of his investments as law required.
Despite having sold much of his holdings in Sjóður 9, visir.is reports that Markús suffered significant losses on his investments with Glitnir. The Icelandic National Broadcasting Service RÚV estimates that his losses on investments with Glitnir were at least 7-10 million ISK (70-100,000 USD).
News come as a complete surprise
According to the Icelandic National Broadcasting Service RÚV the news of Markús’ business dealings with Glitnir came as a complete surprise to his fellow judges on the Supreme Court. His disclosure reports also seem to have failed to find their way to the commission which keep track of the investments or business interests of sitting judges.
Documents obtained by journalists at the media company 365, show that in the last few days leading up to the collapse of the Icelandic banking system in October 2008, the Chief Justice of the Supreme Court, Markús Sigurbjörnsson, sold more than 10 million ISK (equal to 100,000 USD at the exchange rate at the time) of his holdings in “Sjóður 9” a highly controversial money market fund operated by the collapsed Bank Glitnir.
Refused to recuse himself
The timing of the sales, which took place after the Icelandic government had begun preparing the emergency legislation passed as the banks collapsed and only days before the banking system collapsed, and his significant losses on investments with Glitnir, raises questions of Markús‘ judicial qualification to rule on cases relating to the collapse of the banking system, especially cases involving the collapsed bank Glitnir, the local news site visir.is reports.
Markús has not recused himself from any of the cases involving collapsed bank Glitnir, or any of the other post-crash cases which the court has heard in the past years.
Four high-profile cases involve the collapsed bank Glitnir and its chief executives. In one the three top executives and a broker were convicted of breaches of fiduciary duty, market manipulation and violating accounting laws. Markús was a member of the banc of five judges who sentenced the four, two of which had worked in the department which handled Markús‘ account.
Extensive business dealings
Markús‘ business dealings with Glitnir in the years leading up to the crash were quite extensive. At the end of 2003 Markús owned one million shares in Íslandsbanki, which later became Glitnir. In 2007 Markús sells his shares for roughly 44 million ISK (700,000 USD). He then invested these funds, and an additional 17 million ISK in funds managed by Glitnir. By the beginning of August 2007 his holdings were estimated at 65 million ISK (1 million USD).
Markús’ investments were managed by the wealth management unit of Glitnir. At his request the investment strategy was rather aggressive. However, in 2008 Markús began transferring his investments into safer funds, continuing to liquidate his more risky holdings until the banking system collapsed. A few days before Glitnir‘s eventual collapsed, Markús managed to transfer at least 15 million ISK out of the money market fund Sjóður 9.
According to law judges are not allowed to have any significant business investments which could raise questions about his impartiality or jeopardize his judicial qualifications. Judges must receive a special waiver for investments from The Commission on Judicial Qualifications.
Problematic timing of sales
The timing of the sales raises questions, as information about the imminent collapse of the banking system was by that time beginning to seep out among the highest rungs of the civil service. Markús told visir.is in a written statement that he had disclosed all of his investments as law required.
Despite having sold much of his holdings in Sjóður 9, visir.is reports that Markús suffered significant losses on his investments with Glitnir. The Icelandic National Broadcasting Service RÚV estimates that his losses on investments with Glitnir were at least 7-10 million ISK (70-100,000 USD).
News come as a complete surprise
According to the Icelandic National Broadcasting Service RÚV the news of Markús’ business dealings with Glitnir came as a complete surprise to his fellow judges on the Supreme Court. His disclosure reports also seem to have failed to find their way to the commission which keep track of the investments or business interests of sitting judges.
