kaupthing bank before crash 2008

210

Upload: rita-ornellas

Post on 24-Apr-2017

215 views

Category:

Documents


1 download

TRANSCRIPT

Page 1: Kaupthing Bank Before Crash 2008
Page 2: Kaupthing Bank Before Crash 2008

!∀#

Page 3: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ +

),−

./!−+0000− ./+−.,((−1#23

+−00000+−),1(453

.+−600000.+−6,#∗7189∃3

.!−:00000.!−:,1(453

.−.0000 − −/2;<2=>?

−0000 −0≅Α7;Β−

−/00000 −/4>−

−0000−0(?−

−/0 −/0000)8∀−

−00000−Χ≅

:/.−++−. −.−+−.−:6:−)−

)4∗

Page 4: Kaupthing Bank Before Crash 2008

∃%& ∋()∗

)0)−

∗2&

∆ & Ε ∀7 &−)&Φ7Γ&∀&&∀&& Φ&∀&&Φ7−2Γ∀&& )Η &&Γ&7 Ι&&&ΓΕ&&7∀&7−

2&&

ϑ∀ . −: )8∆%∋ +−∆ 6Γ/−: −∋ .Γ /6−)Φ7 Γ!− )Φ7 +−//Κ0+ −6− !

∗Λ

)

( 6:−4 −:)Φ7 +−. .−%∀− −∃∃ ++−.

)&∀&&& &− ) ,Γ∀,−Γ≅8(?. ΚΕ7)−

)Μ &∀7 Ν & &0 7 &∀ ∀ &∀Γ7& ∀ ∀& 7 &Ν 2&Γ∗ ∃Γ ( & &− )Η ΕΟ98∀−

)8&&)&ΕΠΧ≅Γ0ΙΑ;Γ,ΙΑ;−,=7ΙΘ>−

#,

9∀(∆≅Λϑ∋&Ε&∀−∆ )4∗ . ∀∀ &7 Ε& & Ε Φ−

Page 5: Kaupthing Bank Before Crash 2008

∃%& ∋()∗

)0ΠΧ≅

∗2&

&)−))−

2&&

ϑ∋∗Λϑ∋

)

( −

Π>Χ≅&7)−∆&7Ε7ΡΣ,>(?>,>−∆&7)−

#,

9∀(∆≅!/Κ ∋ &7 6Γ ! )−∀)4∗!+−

Page 6: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ 6

)0,((1#23

∗2&

∆∀ & 7 Ε 7 ∀ΤΤΕ&&7&−

2&&

ϑ<∋

ϑ−

)

( ./+−.4 − )Φ7%∀−

!

∆ 7Ε &77)− ∆ ∗∀∗ &ΕΕ∀&&ΤΤΓ4−

#,

( Φ −∀. :−/

Ι&∀∀&7Λ&&

Page 7: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ :

)0,1(3

∗2&

∆&&7∀∀ΓΙ7∀−

2&&

2&)&−

∗Λ

%&Ε41Ε&Φ&7&∀&3Γ&7−

)

( .!−:4 − )Φ7 < <%∀− − . !

∆ , Ε & 7 ∋ (7,ΓΕ8&&&7∀,−)−1Ε)3−Μ∀&Ο(45∀Λ.−,−∋−0,.−:7&4−Τ(−−04%+&&+−∋,0)4∗:−Υ)4∗.−7&2&

#,

.−(−,−27&1∀4%!−<(∆≅&−! Κ3

+−4

∆&Ε ∀& & & 777Φ7 & (45− ∆ & && )4∗+−6:−&Ε7ΕΙ ) 1)4∗ +:.−3 ∀,1)4∗6+−Γ∀3−

Page 8: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ !

)0),1(3

∗2&

∆ & & 7 1∀3∀&Ο)4∗. 7&&7 !Ε&−

2&&

82& 6< !1)4∗3∆∀. −: )8∆%∋ −∆ 6Γ/−: −∋<)Φ7 Γ!− )Φ7 ++− Κς

1ςΕ<&&Ε)4∗+.−3

%Γ&&Ε&7&7&∀−∃7∀1)4∗0+:−37Ε&&1&−)4∗0!−/Ο& 6< :3Γ))4∗!−∀Ε

)

( +−+:4 − )Φ7 < <%∀− <

) 0 Ε ,0Ε Τ .78&&∀−Ο%& &Ι7&7 &− )Μ &∀7 & &0 7 &∀ ∀&∀−8 :Γ)&&7&∀∀&7&∀&&7Ε&&−∆Ε&∀&&Ε&&Ε−4Ε(457&Ε∀)Λ.−)−≅−Ο /< )4∗. &7&(2&7ΓΕΕ&)4∗/−∃7 /< !13−−)−Ο..< 6%+ 7&∆(2&7ΓΕΕ&%:−1)4∗6−+:3−∃7..< /13−

#,

.Υ−27−−,∀7)−≅−

.Υ−&7∀∗. Κ13Ο& &&Γ Ε &&7 ∀−

Page 9: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ /

∗∆&Ν

∗2&

∃∀∀&4−

2&&

ϑ∋ ∗ΛΥ97Ε&

)

( . !−/4 +6− %∀− −. ∀

∗ ∆&ΦΝ 1Ω∗∆Ω3 Ε &7Γ ∆&ΦΝ%&7 ∆1∆%∆3ΓΕ&&∀&−Χ ∀ & Τ− 7 & <∃&#−Χ ∀ ∀− ∆ ∗∆Η ∀ 0& &Γ Ε&9& 8∀ &7−∀ 9& ∀ 9&&−ΞΕ77&∆%∆Γ

#,

9∀(∆≅/!−6Κ∆&Ε&∗∆Η9&&ΕΕ∋(27&7∀∆%∆ΗΕ∀77−

Page 10: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .

∆∀

∀∀

.+!−/00.+!−6Χ8∀,−

6.−:.−. −: −∆∀1(453

)4∗

Page 11: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ ..

∆∀1(3

∗2&

-∆∀∀6 Κ∀-(&∀&−-4∀−-(&&0&Ν−

2&&

∆&77∀78&&∀28&∀∃&#−

∆&7∀∀7Ε∀Ε&−%)Ε−

)

( −2%#∆∗.−4 . −:)Φ7 0 0%∀− 0

Ψ ∆&&∀∀&Ε(45−Ψ Χ&9&ΓΧΧ

ΕΕ∃&Ε7ΧΧ−Ψ ∆∀7Χ7&−∋−Γ∃Χ−∋−

&&∀8&&∀82−Ψ &∀Χ2

Ε(45,∀&−Ψ ∆&7∀Ε(45−

#,

∃∋12%3:!−:13:.−6136:−+9./−!(∆≅ς..Κ

0∗Λ−00&Ν &7 7 &∀ Ε &7)4∗.: Ε&. 8&&∀82&−0&08))4∗

ς(∆≅&&ΖΝ[7

Page 12: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .

Χ8∀,(−

∗2&

∆&7Η&&7&∀&7&7−

2&&

ϑ∋∗Λ9)&∃&Λϑ<∋

)

( .+!−6 !

∆&7&7−)−

∆∀Ε&7−

#,

&7Λ/6Κ1(∆≅. +Κ3 Γ Γ /Γ Γ )−∆&7Ξ&(−&&Φ&∀−

Page 13: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .+

Ι

!−/000!−/991(453

∀∀

6− −0 −.−:−

+− 00.−:+ −+Χ≅

: −: −.0:−:6−/8&8−−

:!−0.−/.−:−!Ι−

#)4∗

Page 14: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .

Ι Ι−

∗2&

∃ΙΗ )4∗&∀Ε∀Ε&Ε)4∗8−2&7&ΙΕ&Γ&Ε&7∀∀7&78&&−

2&&

ϑ∀ −+ )8∆%∋ /−∆ .Γ+ 6 −∋ +−6)Φ7 /−/ )Φ7 +Κ0+.−.− :

Ξ&

)

( −!4 .−:%∀− .−/ !

Ι−&7&7∃−∴∴Ε&Ε/Κ−∃Ε6Κ−∆&7&ΓΓΓ&7Ε)−∃/−:.ΚΓ+−.Κ∋&17823Γ:.−!ΚΓ++− +ΚΧ,6Κ8&8−

#,

)Φ7+Κ

∆ &Γ & Ε ∀ Γ −− ∋&Γ,Χ−

Page 15: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .

∗2&

∋7.<+&&∋Γ.<+)8&.<+8&−∆&7 ∀7Ε∀−∆ &Γ7&−Τ∋Γ&7&&&Γ& &7 7−∆&7ΗΦ7 ΕΕ −

2&&

ϑ∀ .: )8∆%∋ −!∆ .6− −∋ .. −/)Φ7 .:− )Φ7.−Κ0+ − 6− !

∗Λ0∆&∀ΧΗ !&&ΛΕ∀%∀&∆∀&7ΛΓ/.−

)

( 6−/4 :−:,− −. ∀

88 &7&7 Γ Ν& − 88 & Γ Ν Γ ∀0&ΓΕΓΓ&ΓΕ&Ε−

∆ 13 &&7 ∀∀ & &7 1∗23:−!)4∗−∆88Η&∀∀Ε&−

#,

(∆≅:+Κ

∆∀&∀∀Ε∀18&Γ∋Γ4Γ2&Γ,7Γ,&3−

Ι08&8−

Page 16: Kaupthing Bank Before Crash 2008

∃%& ∋()∗

Page 17: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .:

Ι0991(3

∗2&

-∆ &7 Ε & Φ7 ∀ 7 Φ−-∆Φ7Ε &1Ε43−

2&&

∆∀7 !Γ&7)4∗+−

∆7∀&1! Κ3−

)

( !−/2%#∆∗04 1 −3)Φ7 0 0%∀−0 !

Ψ 99 ∀ && ∀ & &&−∆∀(Ε&&Ι−

Ψ ∆ && & ΗΜ−

Ψ ∆∃&2&−Ψ ∋∋Γ&7Ε&−Ψ ∋Ι&&&14%!−Γ7∀Ι3

&7 Ε && (%−

#,

∃&+−6∋∋+−2Χ.−:9−:(∆≅ς /Κ

0∗Λ0∆ &Ε < & Ι&& 1#9 3Ε&Ε & − Φ &&−

ς(∆≅&&ΖΝ[7

Page 18: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .!

,,

+− 00+− ,,1(453

6−:− −.−.9

−!00−!Χ−

./−! −!0./− );>8−

6+−006+−.//!−

.−00.−,);−

.:−/00.:−/2ΙΑ;>,−

−600−6,)Φ7.−

:!−/00:!−620−

.! −.+− −+:−:,−

)4∗

Page 19: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ ./

,0,−Γ,)Φ7.−Γ20−Γ,);−2ΙΑ;>,−

∗2&∆&&ΕΕ7∀&.−6−(Φ7−

2&&

ϑ∀ +.−! )8∆%∋ .−+∆ +Γ.− −∋ .−)Φ7 /! − )Φ7 !−:Κ0+.−.− :

9Ε&

)

( .!.− 4 −+%∀− .+− !

, − ∀ &7 Ε 4 &∀−∆&ΓΓ&7∀−& 77 7 − Η Ε&7−&∀ 7&&−

#,

∀ & Ι &−

&7 &&−ϑ∀Ξ7∀−

Page 20: Kaupthing Bank Before Crash 2008

∃%& ∋()∗

#∃%.//!&∋

∗2&

∆&&&Χ−Γ∀ 8&&&7−) & Ε &7ΓΕ∀Γ&&Ε−

2&&

ϑ<∋ 9Ε&

)

( 6+−

.//! − &7Γ Ε 7 2ΙΑ;> , 1!−+Κ3Γ);>81!−/Κ3Γ∋1!−!Κ3−

.//!Ε&Φ/−:ΚΧ,8+ −&&ΦΕ.//!ΕΓΓ7ΕΕ13,13−

#,

∆ Κ & 7 &7Γ (∆≅ . Κ−

&7∀/−:ΚΧ+Κ,−Ε−∋&&&ΦΧΕΓ ∀ &7 − 8Γ Ε& Ε: Κ(∆≅−

Page 21: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .

,0);>8−

∗2&

∆ &7 7 && ΕΕ 4Γ &∀ 8&−∆Ι7&7Η,&7−

2&&

ϑ∀ !− )8∆%∋ ∆ :+− −∋ −6)Φ7 − )Φ7 :Κ0+.−.− :13

∃&Λ.+ Κ

)

( ./− %∀− −! !

∆ &7 &7 − 8Ι_ −ΑΘ

#,

&7Λ/6Κ1(∆≅. Κ3−

Γ−∆&7Ξ&−&&Φ&∀−

Page 22: Kaupthing Bank Before Crash 2008

∃%& ∋()∗

,0Χ−

∗2&

%&&ΕΕ&77&&−∆&Χ7&Ε&ΕΕ−2 Χ Ε Γ Ε &7 Γ & && ∀ ΧΓΕ& &7 Γ ∀&&−

2&&

ϑ∀ / )8∆%∋ ∆ + −∋ 6!Γ)Φ7 : )Φ7 +.ΓΚ0./−− !

∗Λ∋&∀&&−

)

( −::

ΧΕ&8&−&Γ&ΓΦ&−

4 & Χ ΘΓ ΧΓ . 0..Γ =Γ αΓ%Γ∆ΓΓ)∀Γ%7Γ9Γ∃Γ%7Ξ−

#,

(∆≅!:Κ∋&&&∀1≅<)3Χ−∆&7&&−∀Λ8<)8∆%∋Γ)Φ7−

Page 23: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ +

∃&2(−

∗2&

∆4&&&7ΕΛ )&&Ε&&Γ&&&& 8&&& (&&&&

∃& Ε & 1Φ 3 Ε & & ∀ Ε &∀&∋7Γ&∀∀&&7&ΧΕ∀ΓΓ∃&7&∀7∀&&

2&&

:!−+ )8∆%∋ −+∆∋ !+− )Φ7∗ +6Κ−∋ ./ − )Φ7 + +−!06Τ7 !

∗Λ61#Φ∀Λ3−∀Λ&Γ&∀Ε%& :−∃)8∆%∋2] !< /..−∆&&∀&Χ&

)

( −4 −6)Φ7 : − 6−,− − ∀

#,

(∆∃)8∆%∋13Λ /.−)≅∃17β 63Λ 6−6)≅Λ 6 +−.ϑ%1&−8)53Λ −:() !∗

2 & ∀ 2 ( 2 & ∀ & , 7−&∀,−

∃&4ΕΗ&Ε6−∆&& 6−2Ε+Κ)8∆%∋∀−7Τ !Γ&&&ΕΕ&7∀Ε&&∀ !< /&7−9Ε&&&&−2&&∀Ε&∀&−

Page 24: Kaupthing Bank Before Crash 2008

∃%& ∋()∗

∀,−

.−:.−:00∆∀(−

. −6. −600∀,−

+:−!0.−.+6 −.∀,−1(453

+)4∗

Page 25: Kaupthing Bank Before Crash 2008

∃%& ∋()∗

∀,−1(3

∗2&

0(&∀&Κ∀−04)4∗.6+Κ−

2&&

∆Μ&77)4∗.ΕΕ&7)4∗.!−8)∀)4∗. ∀−

ϑΕ∀Ε&∀∀&7)4∗:−!−

)

( +6 −.2%#∆∗−64 .−.)Φ70 0%∀− 0 !

Ψ Ε+∀&&Γ + &Μ&&Ε(45−Χ&7&−

Ψ 7 & Ε + & Ε& −

Ψ &0Ε∀&0∀−Ψ ∋Ε&7∆∀Ε∀Ε&

∀ ( ϑ 7%&(−

Ψ ∀ Ε (45 Ε+ −/−

#,

.!.−,−!∃7&6−!9.− (∆≅ς /.Κ

0∗Λ−07&∋ ., 1∀Ε&3−0&01)4∗+ 38)−

ς(∆≅&&ΖΝ[7

Page 26: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ 6

∋]1(3

∗2&

0(&∀&6/Κ∀−0Ξ& &0 Γ Ε∀Φ7)4∗6−+−

2&&

∆Μ&77)4∗ΕΕ&7)4∗.10!Κ3−

∆∀∀778&&7−

)

( .6−!2%#∆∗.−4 +− )Φ7 0 0%∀− 0 ∀

Ψ ∋] ∀ && &Μ && Ε(45−∆7(45−

Ψ Χ 22 7 Ε& & ∀−

Ψ ∗&7∀)4∗.−6Ε&∀ ϑ− 7%&(−

#,

−/97Ι.!−∀.6−.9 −6(∆≅ς.Κ

0∗Λ−00 Ε & 1)∀Γ Γ& 3 && Ε∋1∀)4∗.6−.3−0&01)4∗.!38)−

ς(∆≅&&ΖΝ[7

Page 27: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ :

7#7

6−:006−:7#71#23

+.−6−./−:6−:Ι&∋7Χ(−

)4∗

Page 28: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ !

Ι&∋7 ϑΦ

∗2&

4ΕΙ&&ΕΕΕ&ΕΕΓ&−&&∀7&7&&&&7&&&&Ε∀Ν∀− ΧΕ∀Γ Ε & ∀ &∀− %&∀ Ε∀&ΕΓ7∀−

2&&

ϑ∀ χ − + )8∆%∋0χ −.∆ χ+− −∋χ+−+)Φ7ς χ+−+ )Φ7 .−6Κς8&−∋∃,0+ −6− !

∗Λϑ<∋&Ν

)

( 6−:4 /−:)Φ7 6−.

∗0∀ & (− ∋≅−/:&∃)∃Γ(Ξ.−∆≅Ε7,<7 7 1Ε Ε ∀ 43 Φ7 Ε− ∆ ∀& 7 ∀−Φ7Ι&4−∆∀Ε&&7Ε−∆∀Ε&Γ∀7∀∀4173∀&7−

#,

2 (< ∀ ∃ΧΓ(Ξ.−≅7∀1ϑ∀ :3χ+−

ΞΕΓ∀7χΓ∀&:Κ(∆≅−∗ Ε & & &−%& Ε && & Γ & Ε Φ7<Ε ∀−∗Ε7&Ε&−∆70&Ε−

Page 29: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ /

7#71#23

∗2&

∆&(7&7&∀(∆≅&&Ε7Η7Ε−

2&&

ϑ<∋

∗Λ0

)

( 6−:4)Φ7%∀−2% −

∆ 7 7 ∀ & 0∀−∆7∀∀&Ε, ∀ − 2 & ( &−

#,

/−+9∀(∆≅:6−/Κ

∀ Ε &Ε−Ι&∀∀&7Λ

Page 30: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ +

(&7

−00000 −∋−

+−600000+−6∋..+−

+−600000+−6∋. 6−

. −/00000. −/δ7−

−/00000−/. .∀−

! − −6.−−6− −.!−(&7−

#)4∗

Page 31: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ +.

(&0(&7−

∗2&

(&7&&Ε&−∋7∀∀Γ∀7∀Ε−∆&Γ∀%∀∀&7−∆&Ε∀7& (&7 Ε 7Ε & 8&&∀Ε∀∀Ε−

2&&

ϑ∀ .+− )8∆%∋ !/−∆ Γ:+6−. −∋ /:−6)Φ7!+−/ )Φ7 .−+Κ0+ −6− !

∗Λ:

)

( .!−4 −)Φ7 − −!%∀− −ΕΧ .:− ,− − !∀∀

∗ − (& 7 ϑ& 7 &Γ 7 Ε ∋<− Γ Ε (&7Γ&Φ ∋<Γ Φ /6−//Κ& &Φ−∆77.+76 ΕΓ%Γ8&2−∆7−:Φ&Γ+Γ! )4∗−!−∆(&7ΗΕΓ7&−∃Ι7 & & , −(&Η8&Ε∀&Ε7&−(&Η%&7&7&−∆(&7Η2−∆7&&−

#,

∃Λ)4∗6 ∀ Λ )4∗−,Λ)4∗69∀(∆≅/ Κ

∃&∀8&−∋&Χϑ&Γ.&−∃&−&&&&−∀Λ)Φ7.Κ

Page 32: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ +

(&0. .∀−

∗2&

∆ &7 ∀ − ∀ ΕΕΓ&&Ε&∀7−∆ΦΕ&&Ε&∀−9∀&Ε77ΕΕ&−

2&&

ϑ∀ −. )8∆%∋ 0 −+∆ +− −∋ −)Φ7 ..− )Φ7 ++−Κ0+.−.− :

∗Λ6

)

( −/

∗ 7 ∀− ∆ &7 7 δ7 1&7 ∀ δ7 −3Γ Ε& Ε 7 , (&7− . .∀Ε Γ&&7Ι& & ∗7Ι∀Γ &7 & − ∆&7 & Ι& && ΕΕ&&/:6: + −∋Ι&Ε. ΚΕ7 7 Ε − ∀& ∀ &− ∆ &7 7 7 ∀ΕΕΕΙ&−∆∀Ε0 − 8 7 Ε .0.!−

#,

9∀(∆≅ Κ&7 ∀ ∀ 1)4∗ / − )4∗ Ε3&7∀1)4∗6−3∃Ε&7∀61)4∗.:−− (∆≅/ Κ3∆&&&

Page 33: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ ++

(&0δ7−

∗2&

∆∀∀Ι&Γ&∀−∆&∀&δ7Ε∀∀Ε7∀7−∆&&&ΕΓ−−.0.!−∆&7&Φ77&−

2&&

ϑ∀ −. )8∆%∋ 0−!∆ ..−6 −∋ −+)Φ7 .− )Φ7 +6−6Κ0+.−.− :

∗Λ6

)

( . −/ ∀

(7∀8&−∆&7Ε7,(&7−∆&7∀&&−∆&7&7∀&&6Ε&Ε&&−∆ &7 ! 7− ∆ &7 ∀ &7(&7−∆&7&&∀&ϑΞΙ−∆7∀Ι&−

#,

9∀(∆≅! Κ∋Ι1)4∗.+−3−∆&7 Ι − ∃ Ε &7 6 . . & − ∆&&&Φ−

Page 34: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ +

(&0∋..+−Γ∋. 6−∋−

∗2&

∆7ΕΕ∀&−∆&&∀Ε7Γ−−7+7−

2&&

ϑ∀ !− )8∆%∋ − ∆ + −+ − .+− )Φ7 .+− )Φ7 −/Κ0+.−.− :

∗Λ/

)

( :−6

Χ &7Γ ( 7 ∀− ∆ ∋ ∋Γ∋..+∋. 67&&Γ∋&Ε&Ε7&∀Ε−ΕΓ & & &7 & &Ν− 97Γ∋Ε&&∗7Ι∀ +Ε−∆Ε∀ΕΕ 7Γ ΕΓ&&&− ∆ ΕΓ ∗7Ι∀− ∆∀ Ε − ∆ΓΓ &&ΓΕ &∀− 8Γ&70Ε7Γ7&0ΕΓδ7−

#,

9∀(∆≅ Κ∆&∗7Ι∀−2Γ & Γ &&−(Λ≅8)4∗.−∆&&&Φ−

Page 35: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ +

.−:00.−:90Ξ∀−

.− − .:− 8∆Χ∋<

/6−:−6: −:.−6−

,&)4∗

Page 36: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ +6

∗2&

∆Ι7Η∀&8&&&&&Ε& !∀Γ−−&&&&∀−∆)8∆%∋&6− Κ.−+Κ& :−8Ε8&&&7Η&−ΧΕ∀Γ∀Η8&Γ&7ΕΦ&−

2&&

ϑ∀ . − )8∆%∋ +−∆ //− −∋ . /−)Φ7 +:!− )Φ7 +/−Κ0+ −6− !

∗Λ∋&∀.ΧΗ !&&Λ%<)8∆%∋− Γ2&&∀.−+:Γ)8∆%∋<8+−6−

)

( .−64 : −:,− −6

<&7&=Γ∃=Γ8∆∀Γ&8∆&ϑ&&−=ΓΓ&8&1ΓΓ3−& :Ε=ΕΕ−

2Ε∀) !Γ)Ε−

∆7&7Η∀Ν &7&&7Ι&7−8Ε∀&&ΦΓ−−≅∋−∆7&7−

#,

9∀(∆≅6 Κ

∋ − ∆ & Γ &<ΕΓ &&Γ && &∀Γ∀7−&7&&−∀&∀−

Page 37: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ +:

08∆

∗2&

8∆ & &&ΓΕ& & &&&7& ∀&−∆ !Ε&7ΓΕ&Ε)8∆%∋&!−.Κ :.+−/Κ−∆∀−

2&&

ϑ∀ +.− )8∆%∋ −∆ :−+ −∋ ./−+)Φ7 .−+ )Φ7 + −+Κ0+ −6− !

∗Λ∋&∀.ΧΗ !&&Λϑ%<)8∆%∋.−6Γ2&&∀Λ.−+:Γ)8∆%∋<ϑ8−6 ΓΦ7+ Κ−

)

( .:− 4 − ∀

8∆7ΓΕ&Ε/ Κ&7ΓΕΕ−∆7∀&7&& ϑ&&ΓΕ %Γ Ε ϑΕ7− ∆ &7 7−

∆ 9& 6Γ Ε &Φ ∀∀&∆)Γ%≅Γ8∆Χ∋<−∆&−

#,

9∀(∆≅ Κ

∆&7&∀&1&3Γ ∀ ∀ Γ & Γ ∀ & && Ε ) −&7&&−∀&∀−

Page 38: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ +!

>

∀!

.−+.−+∃8∀−

−.!−.− >−

)4∗

Page 39: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ +/

> >−

∗2&

∆&&Λ.3∆∀&Γ7,(&3>Η7∀&∀.−!−

2&&

ϑ∀ 06/−! )8∆%∋ 0!: −+∆ 6 :− −∋ .Γ .−.)Φ7 .Γ: −+ )Φ7 +6−/Κ0+.−.− :

9Ε&

)

( − %∀− −+ΕΧ −!

>Γ72(,Γ&7Ε&&∀&Γ&78&ϑ&&−∆&7Ε++Κ,Γ+/−Κ(&Γ//Κ∆∃Γ.Κ∗&Ε&−>&.&∀7−%Γ&7Ε∀ ΚΦ7−8&ΓΕ∀Γ∀ 7 − >Γ & Ε , Ε(&Γ.!−:−

#,

∆ ∀ &7 &∀ . Κ−

2&,(Γ7ΓΕΕ∀&Ε−

Page 40: Kaupthing Bank Before Crash 2008

∃%& ∋()∗

>0∃8∀−

∗2&

∆ &7 7 2(,Η 1>Η3 &− &∀ Ε Ν Η & &∀ &7ΕΗ−&∀∀−

2&&

ϑ !!−! )8∆%∋ ϑ<∋∆ ..−+ −∋ .−/)Φ7 0!− )Φ7 ϑ<∋0+.−.− :13

∗Λ9)&

)

( .−+

∆&7&7− ∀ 1.<+3Γ δ ∃− ΤΘ 1.<+3 ∃Ρ1.<+3−

#,

&7Λ+Κ1(∆≅+Κ3 Γ ∃7 ∃ 2 Ε)4∗&−∆ &7 Ξ& − Ε & Φ−

Page 41: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .

≅&∋<128Χ3

∗2&

∆ ∀ & Γ 2 Χ−%&∀&&7Ε−

2&&

ϑ∀ − )8∆%∋ 0 −∆ .:+−6 −∋ −6)Φ7 .−6 )Φ7 /−:Κ

∗ΛΥ

)

( .+!−4 . +−:)Φ7%∀− ++−6ε9φ

≅& ∋< Ε Τ 6 &)&−∆&7Μ7∀ ,Ε0&Φ7 Χ−∃Ε&Φ :−

28Χ&: Κ&7Μ&&7Φ7&−

#,

9∀(∆≅Λ: Κ Λ2& & − ΕΛ(∋Ε7≅&∋<−∀9∀&7Λ,

Page 42: Kaupthing Bank Before Crash 2008

∃%& ∋()∗

Page 43: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ +

Χ∆γ∋<128Χ3

∗2&

%&&1&&∀&<&&3−&7

2&&

ϑ∀ !−! )8∆%∋ −∆ /−: −∋ +.−:)Φ7 ./.−: )Φ7 +−!Κ

∗ΛΥϑ&∀&Γ−∋+ Τ !ϑ8%<)8∆%∋6−.−

)

( −4 −)Φ7%∀− ε9φ

8 :ΓΧ∆γ&Φ8Ε ΚΧ∆γ∋<1ΖΧ∆∋[3ΓΕΧ∆∋−

∆Ι71)4∗+−/3&Ε&&77/ ΚΧ∆∋−

∆&7∀&7&7&777Γ&&Γ&&Γ7&&&&&&−

#,

9∀(∆≅Λ Κ

& ϑ8% 1ϑ8 ∋3 ∆∋

)4∗./−:&7Φ(2Ε&7∀)4∗:−+−

7Χ∆γ∋<−Ε&∀Γ&&&∀7∀&−

Page 44: Kaupthing Bank Before Crash 2008

∃%& ∋()∗

ϑ∀

− −0]9−

−6.−! −!ϑ∀−

−6 −6Τϑ∀

:−..−66−−

.6−−!. −Α>−

)4∗

Page 45: Kaupthing Bank Before Crash 2008

∃%& ∋()∗

ϑ∀0Α>−

∗2&

Α>&&7&&−∆Ε&&77−

∆ & ∀ − ϑ∀Η 7Γ&&Ε−

2&& :

ϑ∀ .− )8∆%∋ −∆ /−! ∋ +.−+)Φ7 :−6 )Φ7 .Κ0+.−.− :

∗Λ

∀&&

)

( . −4 −!

Α>ϑ∀−978&−

∆ &7Η Ε & Π&Γ]9ΓΘΓϑΘΣΓ 8#)(9−,&!:Κ∀−

#,

(∆≅:+Κ

8 Γ & ... Φ− ≅ .: )4∗ &7&−

)Φ7&∀.+Κ

Page 46: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ 6

ϑ∀0−

∗2&

7&71Κ7 :3−∆ ϑ∀ (∀ ∗ & Κ &7 &−9Ιϑ∀Γ)78∀−

2&&

ϑ∀ 6 )8∆%∋ <∆ .! )Φ7 Κ)Φ7 +.0+.−.− :

∗Λ9)&∃&Λϑ<∋

)

( 6−4 .−6

∆&7∀&7−

9ΕΛΤΘΧ,>:−.+ΚΓΤΘΘ.−/ΚΓ8>ΤΘΘ.−/Κ,>ΧΘΤΘ.−/Κ

#,

&7Λϑ<∋ ∆&Ε&∀&∀−

Page 47: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ :

ϑ∀0Τϑ∀

∗2&

<+ Η (∀ & &Γ&7Γ&&ΕΕ(∀−

2&&

ϑ88 .!− ϑ−&− /∆ :!6 < . Κ)Φ7 !: ∋% .−!Κ0+ − 6− !

∗ΛΥ12&3∃&Λϑ<∋

)

( −6 ∀

Τϑ∀&−

9ΕΛ1.Κ3Γ8)0∋(∆8∀1/Κ3Γ∋Ι∀&∀1./−:Κ3ΓΤΙ∀1./−:Κ3Γ91 −Κ3−

#,

&7Λϑ<∋ ∆&13−

Page 48: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ !

(

/−6−+00 −.+−.Τ7(Η28&−

∀∀!!

/−6−+00−6!−.∃8−

//−.!−6 −.−06−/8∀∋<

−:0000−:Χ7−

:− 000 −+6−:ϑ−

:−: −000:−+∗Σ−

. −60000. −6(−

66−!00−+− −.(%&Χ≅

#)4∗

Page 49: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ /

(%&Χ0Τ]

∗2&

∃ & & Γ & & ∀Γ ∀7 &Γ ∀71&8(≅∋Ε3−

2&&

ϑ∀ : )8∆%∋ .∆ −∋ . 6)Φ7 : )Φ7 !Κ0./−− :1(%Χ3

%<)8∆%∋1&&,∀3ηΛ.−∆(%Χ. )8∆%∋.ΓΕ&!ς)8∆%∋−8ΕΕ∀8(≅∋)8∆%∋ς)8∆%∋−∗Υ

)

( :−4 −!)Φ7 −+,− 6−6

( %& Χ −≅− &7 &Γ Ε& Τ78∀−Τ7&∗Σ18&&3Γ Τ7(Η2 8&−13Γϑ82−13ΓΧ7−ΤΘ−1&3−∆ & &∀ &7Η &Γ &&Γ & Ε &Γ&Γ&Γ&&−∆Γ&−

#,

ϑ∋ ∋Τ77(%Χ&−(%Χ&−

Page 50: Kaupthing Bank Before Crash 2008

∃%& ∋()∗

(%&Χ08(≅∋∋<

∗2&

∆ & ΕΕ 4 Ε Ν 8(≅∋ ,Ε &7−∆Ε78(≅∋&∀ΝΓ&7&&Ε&7%Ε−∆&7Η&7Γ(%&Χ−∀−∀ Ε&Ε 7 &∀ 7 & Φ − ΧΕ∀78(≅∋Η−

2&&

ϑ∀ !6 )8∆%∋ 0.+∆ !: −∋ :/−)Φ7 0:− )Φ7 Κ0. /−− !18(≅∋∋<3

%<)8∆%∋1&&,∀3ηΛ.−∆(%Χ. Η)8∆%∋.ΓΕ&!ς)8∆%∋−8ΕΕ∀8(≅∋)8∆%∋ς)8∆%∋−∗Υ

)

( 6−/)Φ7 −,− !−6%∀− −.

∆&7Η&∀7 & %Ε−. ΚΤ]1)4∗+:∀3Ε∀)4∗++ΕΦ78(≅∋−∆−+Κ8(≅∋ΗΦ7.Κ∀−∋&Γ&∀−)4∗!6−&7Φ7Ε&Τ]Ε∀&−∆)4∗6)4∗+8(≅∋&Ε7 7 Τ] &− ∋ &Γ Η&Ε&7(−∆ &7Η &7 4 & − 8(≅∋ ∋< &Φ& &7−

#,

8(≅∋Η7(%Χ&−(%Χ&−

Page 51: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .

(0∃8−

∗2&

∆&&8&&Φ∀−∃∃8Η∀7Γ&&7−∆∀&∀&&01)<)3 &&− ∋ && Ε Ε &&7 Γ ∀&∃8−

2&&

ϑ∀ :−! )8∆%∋ −/∆ − −∋ .+−)Φ7 − )Φ7 ΓΚ0+.−.− :

∗6

)

( !−.4 −6,− −/

∃8 8&& &7 .//6− 8 8&Γ((∀−∃7&&∀Ε−∆ΕΓΤΑΤ&ΓΕΕ!−6ΚΓ ΤΑΕΕ.+−ΚΧΧΘΕ ΕΚ−∃8Η ∀ & ΓΕ∃8 ∗Γ&(∀−∆&7ΕΓ

Γ Ε 8&− ∆ &7 Ι 7 && Ε & ∀− ∋&Ε%∆&Γ&Ε∃−ΤΑ%Τ&Γ&Ω∗Ω−8Ι&∋7Ι∗7Ι∀−∋& & Τ7 1Ω∗Ω3 &Ω∗Ω−∃87. −

#,

∃Λ. −.Γ9∀(∆≅! Κ

∃ ∀ 8&Γ & & Ε Γ0ΑΓ&∋7−∆&&&Ν&&−

Page 52: Kaupthing Bank Before Crash 2008

∃%& ∋()∗

%<(

%%

6− −!0006.−∆Ε#77(

.!:−/.−.00.−:.!−.7∗Χ(

#)4∗

Page 53: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ +

%<(07∗Χ(

∗2&

∃Λ& & &&& &&&Ε−&7&∀−−&ΓΕ&∀∀7&−∆&∀&∀7Γ&&−)&Ε71Γ;&Γ∀3ΕΕ&−&∀Ε−

2&&

13.+− )8∆%∋ .!−!∆∋ +:−6 )Φ7∗ .Κ∋ +−+)Φ7 ::−60Τ7 !

∗Λ1#)Φ∀Λ03∀Λ∃& !Ε&7&

)

( .!−.4 .−:,− .−. !

#,

2] /)8∆%∋2<&13Λ + −6)≅∃13Λ !− )≅Λ −:ϑ%Λ ! − () ∗

2 & ∀ & Γ&&,&∀&∗∀&7Λ&&

7∗,1∗,34Ε.:&&7& :4&∀&∀&&7Γ∀ΕΓ&&ΕΓ∀&∀&7ΓΕ&)8∆%∋2] :< !

%&Ε&∃& !∀&7Ε∆ΕΕΓΕ0Ε(∆&7∗,0∆Ε#72&1&06ΚΛΚΕ%3.!&

Page 54: Kaupthing Bank Before Crash 2008

∃%& ∋()∗

%<(0∆Ε#77(

∗2&

∃Λ& & &&& &&&Ε−&7&∀−&−∆&∀&∀7Γ& &−∆Ηϑ∀∀7&Ε

2&&

13 +−6 )8∆%∋ !−+∆∋ −+∋ .:−/0Τ7 !

∗Λ+1#Φ∀Λ3∀Λ∃& !Ε&7&

)

( 6.−,− −! ∀

#,

2] /)8∆%∋2<&13Λ .− )≅∃13Λ !− )≅Λ ../−!ϑ%Λ ! −() ∗

2 &7 ∀ & ∗ ∀ &7Λ &&Γ & Ε &Γ ∀ ∀

4Ε.6&&7& :4&&∀&Γ7Γ∀ΕΓ&&Ε∀&ΞΓ&&)8∆%∋2] :< !

%&Ε&∃& !∀&7Ε0&−∆Ε001∆Ε#73ΓΕ∀0−2&16.ΚΛ+/ΚΕ%3.!Ε&∀&Ε

Page 55: Kaupthing Bank Before Crash 2008

∃%& ∋()∗

Θ

∀∀!

.+−.−.. −.−/7−

.−+−:0/−6Θ−

:− −0 6−!78∀−

)4∗

Page 56: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ 6

707−

∗2&

∆&&∀88−

2&&

ϑ : )8∆%∋ ϑ<∋∆ / )Φ7 +:Κ)Φ7 .+0+.−.− :

∗Λ9)&

)

( .−/4 . −%∀− .−.

7−∀&7−

,4)Θ−],,8∀−

#,

&7Λ.+Κ1(∆≅:ΓΚ3

88−

∆&7Ξ&(−&&Φ&∀−

Page 57: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ :

7078∀−

∗2&

∆&77&,−

2&&

ϑ∋∋&Ε−

)

( 6−!%∀− − ∀

78∀−&7≅,−

9ΕΘ],,−

#,

&7Λ!−Κ1(∆≅..Κ3

:Γ +Γ 6 , −Γ .Γ.6Γ.Γ&72;Β−∆&7Ξ&−&&Φ&∀−

Page 58: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ !

70Θ−

∗2&

∆&7Η& &&6 Κ&7Η7 :Ε−

2&&

ϑ +.−! )8∆%∋ ϑ<∋∆ + −∋ +)Φ7 .6! )Φ7 /Κ0+.−.− :

∗Λ9)&∃&Λ. Κ

)

( /−6%∀− −:

Θ−&7&−

9Ε)ιΤΘΓΤΘδΤΘΓΤΣ=δ−ΤΘΓ∗ΤΘΘΣΤΘΘ

#,

&7Λ.6+Κ1(∆≅6.−+Κ3

1:Κ&Γ7.6Κ&3−∆ & & Φ & −

Page 59: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ /

,ΜΧ∗128Χ3

∗2&

∆&7,Χ∗Ο)∀,ΜΧΓ&Χ∗Ε&−

2&&

5.6178)

ϑ∀ ::− )8∆%∋ ..−.∆ :−: −∋ .!− )Φ7 .:−/ )Φ7 6−Κ9 # 178)

ϑ∀ 6!−! )8∆%∋ ++−∆ /−/ −∋ ++:−/)Φ7 .:−. )Φ7 − Κ # 178

ϑ∀ /+− )8∆%∋ !−:∆ .− −∋ − )Φ7 . −: )Φ7 : −/Κ

5.6178)

∗Λ09 # 178)

∗ΛΥ # 178)

∗ΛΥ

9∀&7Λ&&

)

( 6.−4 !−.)Φ7%∀− !/−.ε9φ

,ΜΧ∗∀&Ε28ΧΛ5.6 178 1. Κ3Λ Γ Φ Γ Γ && ,−9 # 178 1. Κ3Λ &Γ & 1&73 # 1781. Κ3Λ∆&&∀9 131781. Κ3Λ&7#: & ;∃∃ 178 1 Κ3Λ ( ∋Χ−

#,

% & %(∆≅&&−

∀− Ε ϑ8 ∋<Λ ( Ε 7 ,Μ Χ9∀&7Λ&

Page 60: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ 6

%∋<128Χ3

∗2&8 && Ε & !Γ & Ε& )4∗ )4∗ . Γ 7 ∀&&&−

2&&

ϑ∀ Γ/:6−/ )8∆%∋ +−/∆ Γ66+− −∋ .Γ.! −:)Φ7 .Γ:−: )Φ7 :−!Κ

∗ΛΥ9∀&7Λ&&

)

( :−4 6− )Φ7%∀− /−( !−

%∋<%ΜϑΓ%−% , &Γ∀ & && && & − % ∀ + & . & .!Γ 7− % Ε ./ 7 70Ε 7 7−

%&7)4∗.++&∀7−

8 !Γ%&Φ0% 8&1&)4∗:−:3&&7−0%8&−2ϑΕ]&)&−

#,

9∀(∆≅Λ!Κ& ∀−

( )4∗ .. & 7 Φ ϑ−9&)4∗!−:Ε79−∀−Ε0% 8&− 1)4∗:−:3 &7 7 7 0%8&−

Page 61: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ 6.

ι−

∗2&

∆&Ε74)1ΚΕ.Χ !(]3ι&&&4Ε&7Ε106ΚΕ.Χ !(]3−∆ι&−∋&4&&&−% &&Γ &7 ∀ ∀ 7 1.Κ )8∆%∋.ΧΗ !3&&&&&7−

2&&

ϑ∀ .−. )8∆%∋ !−∆ +!−! −∋ /6−)Φ7 .!−: )Φ7 Κ0+ −6− !

∗Λ∋&∀.ΧΗ !&&Λ%<)8∆%∋−+Γ2&&∀Λ.−:Γ)Φ7ΛΚΓ)8∆%∋<8Λ+−:/−

)

( ./ −64 .6−)Φ7 −%∀− !−:,− −: !

ι − & & &7Ε& ∀ &&Γ&&7&−8ϕ Η !Γ Κ ΚΓ .Κ6ΚΓ &∀7− ∆&7 &7∀ΕΚ∀& )Γ∃)∋&+Κ∀&∋&−

∆&7&7Η&Φ ∗7& ∃&Γ Ε 7 8∀ , 6− ∆Ι7Γ..−6Γ17 .3 −&Φ,Ε&7.Τ7 /ΓΦ&−

#,

9∀(∆≅6−Κ ∋ − ∆ & ι − 8 Γ &&Γ && &∀ ∀7−&7&&−∀&∀−

Page 62: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ 6

≅&∆&Ν

! − 0! − )(−1#23

∀!%∀!

.!−:0.!−:7&(

)4∗

Page 63: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ 6+

≅&∆&Ν07&(

∗2&

∗&&Γ&Γ&ΕΕ7∀7Ε−

2&&

ϑ<∋ ∗Λ)&Ι&∀∀0

)

( .!−: !

≅& ∆&Ν 1Ω≅∆Ω3 −≅∆Ε4−

.≅∆Γ&Ε&∀ && −

#,

(∆≅!.Κ1 / Κ & &∀3

, &7 Γ & − Ε &&&−

Page 64: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ 6

≅&∆&Ν0)(1#23

∗2&

∃−∆&ΝΗ &Φ7& 7 & ∀(∆≅&&&−

2&&

ϑ<∋

∗Λ0

)

( :/−!4 −)Φ7%∀−2% !∀∀

≅&∆&Ν ∀ΕΕ −∆&∀Φ7∀−

#,

. − 9∀(∆≅:6Κ

∀ 7 Γ ∋∀Γ Φ∀7ϑ&Χ&Φ−≅&∆&Ν−(∆≅&∀! Κ−

Ι&∀∀&7Λ&&

Page 65: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ 6

∃%&Χ−2Χ∋<128Χ3

∗2&

2&−0∋&<∀728Χ− 0&7&∀&−

2&&

ϑ∀ :− )8∆%∋ −.∆ − −∋ 6−)Φ7 ./− )Φ7 +−Κ

∗Λ0

)

( ./− 4 +−6)Φ7%∀− .−/ε9φ

−2Χ,ΧΜ∀&7&Ν%,7−9&&ΕΛ

-,1Υ3Λ. !− -%1Υ3Λ6:− -8∀Λ −

#,

9∀(∆≅Λ6+Κ−& ∀−

0& &07 Ε &1∀&3&−2,−∀9∀&7Λ&

Page 66: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ 66

Ε∋128Χ3

∗2&

% ∀ && && &Γ 7&)−∆Γ&7&&&ΓΝ&−

2&&

ϑ∀ :−/ )8∆%∋ :−+∆ 6/ − −∋ +6−.)Φ7 /6−/ )Φ7 .− Κ

∗ΛΥ

ϑ&∀&Γ−

)

( .:−!4 :−:)Φ7%∀− +−.( 6− ∀

8 )8∀2Γ8Γ&ΦΕ−∆Ε,0Φ7Ε−∆&2)−)&/Κ∀ΓΕ&7ϑ&1Ε73−∆&7Ε7Ε78−∆(9&&28Χ− Κ&−∋Τ !ϑ8%<)8∆%∋6−]∆%)8∆%∋&. :1∀−73

#,

9∀(∆≅Λ6Κ

& ϑ8% ∆∋−

−Ε&∀Γ&&∀7∀&−

Page 67: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ 6:

∋27Ν1(3

∗2&

-∆&&7&&−

2&&

∆Μ&77)4∗.6ΕΕ&7)4∗..−

∀7&∀2%Γ&&−∆∀&&&−

)

( :−.2%#∆∗6− 4 ..:−/)Φ7 0 0%∀− 0

Ψ ∋2 Ε ∀ && ∀ & Ε& ∀&&Ε−

Ψ ∃ Ε Γ &7 2%−

Ψ 8&7Ε&∀∀

2&−

#,

∋&∃−!7183 − ∋&∃1α∋3.6−.9+−(∆≅ς!/Κ

∃Φ Κ−∆8&7&

7−

ς(∆≅&&ΖΝ[7

Page 68: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ 6!

2∀128Χ3

∗2&

∀ ΕΕ &∀ &7 & Ε −

2&&

ϑ∀ .−: )8∆%∋ !−+∆ ./6−+ −∋ !−/)Φ7 6:−. )Φ7 +−Κ

∗Λ0

)

( !−4 :!−:)Φ7%∀− 6−ε9φ !

2∀&)&27 −∆Ι&∀∀ ) & %Γ ΕΓ 2 ,7−

∆7∀&7173−

#,

9∀ (∆≅Λ ∋ 6+Κ Ε (∆≅ :+Κ−97 , ΧγΓ%Ε! Κ

& &∀ Γ Ι7 Ε & 7 7 & 123Γ&0ΓΓ&∀−

9∀&7Λ

Page 69: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ 6/

%Ε∋∃∋128Χ3

∗2&

8 & & Ε Ε Ε &7 Ε & &− & − ∋&7&∀Φ&−

2&&

ϑ∀ Γ/:−6 )8∆%∋ +−!∆ Γ!− −∋ .Γ+−)Φ7 /− )Φ7 ./− Κ

∗ΛΥ

)

( .−+4)Φ7 .!−/%∀− −.ε9φ

%Ε)ΓΕΜ&%−∆&ΕΕ&0&&−%Ε&0∀ΓΕ77.6Γ %−

∆Ε−

∆Ι7/−,7&7Γ∆4−−∆&∀&∀&7.Κ. ΚΕ7%Ε∋−∃−−∋−

#,

9∀(∆≅Λ!Κ& ∀−

∀9∀&7Λ&&

Page 70: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ :

ϑ7&∋<128Χ3

∗2&

&1Ν3 / . )4&∀7− ,& & 4 7 Φ &&&−∆ &7 &7 ∀7 Γ & −

2&&

ϑ∀ +Γ/:− )8∆%∋ //:−.∆ !Γ!+/−: −∋ .Γ6.+−)Φ7 .Γ+! −6 )Φ7 .6−Κ

∗ΛΥ

ϑ&∀&Γ−

)

( .++−4 +!−:)Φ7%∀− ε9φ

∆ϑ7&,&&&7ΓΕ&Ε7∀Φ7&1ϑ&Γ∋∀Γ83!Κ9&−.!Κ−8∀&&Γ&&ΓΕ∀00&&&−∆7.Γ −

∋+ Ι !&7ϑ8%<)8∆%∋+−)8∆%∋&]∆%Λ. 1∀−3

#,

9∀(∆≅Λ:Κ

& ϑ8% −

Ε&∀Γ&&∀7∀&−

Page 71: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ :.

∗)8∃0)Χ

∗2&

%&2&7Ο&&&&7Γ2&Γ&7Γ&∀)&(7∀&0−∋∀7&Ο&77ΕΝΝ∀Γ&9∋ΓΧΧϑ∋∃ΝΝ−

2&&

ϑ∀ .+− )8∆%∋. − ∆ +! − −∋./.−.)Φ7−)Φ76Κ0+.−.− :1/3

∗Λϑ<∀Λ∋&∀

)

( .6:−.

8∀∗)8∃ 4 ΓΕ& (Γ ,7− ∆, && 7 & 4&)Γχ!&Τ !−

8∃7 :Γ+.&7&Φ + 2& 7 8∀ 8∀ ∗ )− ∆ &7 Ε 778∀Η) & Φ7Γ∀&ΕΦ− 8∃7 !Γ& + + 8∀ΗΓ&∃&&.: −.−8Τ !ΓΕ&7+ Ε Φ7 & Φ7 Γ Ε 8∀Η .Φ7&7+78Γ&.6−!Γ&8∀−

#,

≅1.< < !3Λ)4∗.!−.(Λ)4∗..−+

(!∗

ς& 8 18∀3 & 8 &7

∃71∀Γ&Ε2&3Γ ∀ &Γ Χ& &Γ ∋&&−&7&−∀Λ8&∀. ΚΓ8∀ϑ∋≅

Page 72: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ :

,ΙΑ;−

∗2&

∆ &7 7 &− ∆ &7Η & &7&∀&&7−

2&&

ϑ .6+ )8∆%∋ ϑ<∋∆ ∆ 66)Φ7 ! )Φ7 !Κ0+.−+− !

∗Λ9)&

)

( .66−! !

,ΙΑ;−&7&−

#,

&7Λ!:−:Κ1(∆≅..−6Κ3

1 :!Κ&3−∆&7Ξ&−&&Φ&∀−

Page 73: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ :+

)Ιϑ8<128Χ3

∗2&

2&&

ϑ∀ .− )8∆%∋ 0 −.∆ .− −∋ .−)Φ7 .−+ )Φ7 //−:Κ

∗Λ

)

(4 .6 −/)Φ7 −!%∀− ε9φ

∆ ΕΕ7Ε∋∆Γ2∋Γ8ΓΤκΓ%828Χ∀−∆&&)4∗!6−

∆&77&∀&−

#,

9∀(∆≅Λ0Κ∋ &77(∆≅&&

∀&Ζϑ28Χ[−∋&&&∀−

9∀&7Λ

Page 74: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ :

≅∀81(3

∗2&

-∆≅Ε∀1&3Ε&&−-≅α7&&−

2&&

%7&7)4∗+:Ε∀&&∀7)4∗+!−

≅∀7&∀2%Γ∀&&−%7≅ΕΕ∃∗−8)−

)

( /−2%#∆∗. 6−4 /−+)Φ7 0 0%∀−0 ∀

Ψ ≅8&Ε≅αΕ&∀&&Ε(45−

Ψ ≅ Φ Γ 2%ΓΕ&−

Ψ α∀ΕΕ∀−

#,

∋ −.&7&−!−:(∃:−:9..!−(∆≅ς!!Κ

0∗Λ−0α&7≅8Μ)4∗−

0∃Φ Κ≅+ Κα−

ς(∆≅&&ΖΝ[7

Page 75: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ :

∀<<∋Χ<∆&Χ∋

∗2&

Ε−∆7∀7Γ&∀& &Φ 7 ∀&−ΕΕ7&Φ−8&Ε−,∀ϑ∋≅Ε∀&∀Γ∀7−

2&&

ϑ∀ . −. )8∆%∋ .−:∆ 6 !−. −∋ −!)Φ7 .!.− )Φ7 /−/Κ0+ −6− !

∗ΛΥ∃&∀ϑ∋≅7Ε&.:Κ−∋Τ+ Ε! Κ

)

( .6−

∀&Ε∋1&&3ΓϑΕ∀&7Φ9−∆∀&∀7&Ε77Ε−∆∀&&ΟΓ9∀&Γ∀)Φ7Γ≅−∆&Ε∀Φ7∀&7Ε8∆&&−97Ε∀Φ 6Ε&ϑ9! ∀7Ε%ϑ9∗−&∀ΕΓ&Ε−&&7&Ε1&7&73&∀∀Ε−

#,

9∀(∆≅ Κ ∋ &7 ∀ Ε ∀ ∀ ∀ & 1 ΧΓ Χ 2Χ3−∆∋Χ &Ε+Κ & ∋− 27 Ε ∀ ∋ 1&73 &7 Ε &−&7&&−

Page 76: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ :6

∆∋&1)3∋<128Χ3

∗2&

Κ∋

2&&

ϑ∀ −6 )8∆%∋ /−/∆ +/.− −∋ .6−)Φ7 ./−+ )Φ7 +/−6Κ

∗ΛΥ7Γ&7&Ε&&∀−∆ϑ8%<)8∆%∋−−)8∆%∋&]∆%6 −

)

( .−64 − )Φ7%∀− −/ε9φ ∀

∆∋&∋<∀&&7&7&−∆Ε&Ε&&7∀&Ε∀&Ε−∆∀7∀&28Χ&7−

#,

9∀(∆≅Λ+:Κ

& ϑ8%

2&)4∗. ∀&&Γ∀&−

Ε&∀Γ&&&∀7∀&−

Page 77: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ ::

0∀!

ς∆&&88

− 0− 88−1

. − −:!−:∃1(453

)4∗

Page 78: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ :!

88∃Γ(−−8&1(3

∗2&

∆∀Φ7∀&Ε&7∀1 &&Φ Φ7 ∀7 ∀3Ε&Ε−∆&Ε&&Γ∀Ε∀&7 ∀Φ&&−∋88 0∀71&73&&&−

2&&

∋∋∗+<. 0+.<.< :∆∀< )8∆%∋ <∆ .− −∋ + −.)Φ7 !:−+ )Φ7 : −+Κ((Λ−:

∗Λ

)

( !−:4 −:)Φ7 %∀− ∀

88∃Γ(−− 1883 ∀Φ7 ∀ ΓΕ& 7#2∋∃(− ∀ 7Γ Ε , ΓΕ, & 7 ,− ∆ & ∀ &∀ 4 & &1&Γ∀&Γ&3Ε&Φ7∀, 0 −∆ &∀ & Φ & 7 ∀ ∀ &Γ (45 & & &7,!1)4∗. −+3−∆&77−

#,

ϑ&∀∀&7Ε−

∆ 7 & & Μ ∀ ∋% Χ& ∋&Φ (Γ %(, )Φ7 Χ (− ) (− ∀ )4∗../−: Ε/Κ−

Page 79: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ :/

881#23

∗2&

8∀Ε&ΕΕ7&&7≅&&7&∀ΕΕ&−

2&&

ϑ<∋ ϑ<∋

)

( − 4 )Φ7 %∀−

∆∗∀∗≅Ε7&∀&−

#,

. 6−!(∆≅ −Κ 4 Φ &7 ∗∀ ∗∋Γ(∆≅! Κ−Ι&∀∀&7Λ

Page 80: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ !

ΙΠγ,∋<128Χ3

∗2&

7&%∀2&&

2&&

ϑ∀ !.−! )8∆%∋ .+6− ∆ .Γ.−6 −∋ .Γ 6:−)Φ7 :/−/ )Φ7 +Κ

∗ΛΥ

)

( .6−/4 ..−:)Φ7%∀− .−ε9φ

ΙΠγ , ∋< Ε ./:: %Μ ∀7−

ΙΠγ,∋<&)&

#,

9∀(∆≅Λ!Κ& ∀−

,ΙΠγ,∋<&&−∀−−

9∀&7Λ&&

Page 81: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ !.

Χ44∗∗),∗949]

)

( ..−!)Φ7 −:

ΧΦΧΓ∀Γ&∀&<&4Γϑ&Γ)<)−Χ+∀Γ∗Γ87Χ∗1&&&ΓΓ&3−∀Χ∃& +Γ!+&770−∆Φ7&++ ΚΦ7−%Ε∀77&Ε7Χ9Ε∀. ∃ΝΝ&−827 :Γ&ΧΗ6−:2&Χ9ΓΕ&&Ε−Κ778]1Ω8]Ω3ΓΙ&&7&&&−2] :Λ,&∀)8∆%∋./−67Γ!−/Κ∀.!:!Κ∀7..−

#,

(∆∃)8∆%∋Λ)4∗ )≅∃13Λ:)≅Λ)4∗..%Λ)4∗.+6

( ∗

2&∀,−&&,∀&−&7&−∀Λ∃)8∆%∋.−6.+ Τ :&Φ+.%& !ΓΕ&−

2&&

ϑ∀ . −)8∆%∋ ..−∆ .−!∋ . .−!)Φ7 !−)Φ7 Κ0!Τ7 !

∗Λ+<#Φ∀∀Λ∋ &∀∀ ΕΕ&&Ε&7−

∗2&

∃&Λ(Ε∀Γ&&&ΝΓ&Η−9∀&∀Λ%Ι&&&ΓΧ&&∀&∀&&ΓΕ7+Κ&∀∀Τ7 !&+Κ%& :−%∀&7Λ2&&&8]Γ&,Η7∀&−Ε∀∀&7Ε8]Τ !−)7ΛΞΓΕ /< . Φ7&&7−

Page 82: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ !

∋&

∗2&

∃Λ∗Ε&&∀Ε−&∀&−∃&&ΦΕ&∀∀7−2&&&7Φ7&&−

2&&

6:− )8∆%∋ 6−∆∋ 6:−: )Φ7∗ :−6Κ∋ . −)Φ7 +.−:0+ −6− !.

∗Λ. 1#)Φ∀ΛΥ3∀Λ∃Ε

)

( :−+4 +!−)Φ7 !.−:%∀− −+ !

#,

2] !)8∆%∋13Λ 6−∃ ∋ + − ∃<)8∆%∋ϑ%Λ .66−:() ∗

∀&∗∀&7Λ&& 2 & ∀ & Γ&&,&

∋&&&Γ−282Γ∋&Ε7&Φ&%(−2&&∀77Ε∋&&

ϑΕ)4∗! &7∃7 !−∆&7Ε7&. (∀&&

Page 83: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ !+

%_

∀!!

.−/00.−/δ−

/−:00/−:Ρ−

.−/00.−/ΡΑΘ−

−00−%_−

6−:.− :−!−/Β>∀−

#)4∗

Page 84: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ !

%_0Β>∀−

∗2&

∆&&&Γ&7−%&Γ∀70∀Γ∀8≅7−∗&&&&7Ε−Β∋≅ΗΙ& Ι& ∀7 &&Ε&7∀&−

2&&

ϑ∀ 6:−/ )8∆%∋ +−.∆ /6− −∋ ! −:)Φ7 .− )Φ7∗ Κ0+ −6− !

∗Λ0

)

( −!4 :−!,− .−

, &&Γ Ε & Ε &−

#,

ϑ∋ ΙΒ∋≅ΓΙ&&71! Κ&3−∋&&&∀&0&7&7−

Ι&∀∀&7Λ&&

Page 85: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ !

%_0%_−

∗2&

∆Ι &&&∀Ο ∀7Ε∀7 Γ & 87−

2&&

ϑ∀ ./−: )8∆%∋ − ∆∋ !− −∋ . − )Φ7 −. )Φ7∗ :Κ0+.−.− :

∗Λ∀Λϑ&∀Γ)Φ7Γ∀&&∀&∀−

)

( −

%_−Λ&7Ε&ΛΒ∋≅ − 18& &3Λ , && &∀Ε−Ρ−Λ≅∀∀Ι&−ΡΑΘ −Λ ≅ & Γ &7 7 Ε ∀−δ −Λ ≅ & ∗7Ι∀Γ 1& &&3−

#,

ϑ∋ &Γ ΚΕ%_− 8);>∋≅−9∀&7&&∀Λ ϑ &∀Γ )Φ7 Γ ∀ & &∀&∀7−

Page 86: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ !6

%_0ΡΑΘ−

∗2&

∃ & Γ & && 0−9∀&&7&707−

2&&

∆ −: −∋ )Φ7 0.−. )Φ7 0Κ0+.−.− :

∗ΛΥ∗Υ+.−.− :&&∀&−Β∋≅Ε&∀7Φ7!)4∗

)

( .−/

Ξ%_≅ΡΑΘ−8Η&&ΕΡ:1,ΠΠ3∗7Ι∀−

& Ε!:Κ. Γ Φ7∀−∃&∀1 !3−

#,

(∆≅:Κ−

&7∀7−

Page 87: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ !:

%_0Ρ−

∗2&

Β>∀−

2&&

∆ 6:−. )Φ7 6−)Φ7 +/Κ0+.−.− :

∗Λ

)

( /−:

Ρ− ≅Ε%_∀1−− 3− ∆ &7 Ε &&ΩΧΘΑΩΙ&∗7Ι∀−

∆ &7 &&Γ Ε ΡΗ &7Β>∀&&−

2 Ρ & Β >∀17&3&Ρ2Η&−

#,

(∆≅! Κ−

&7−

Page 88: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ !!

(∋&Φ(−

∗2&

∋∀ &Λ ∆ & & & &∀ &−∃∀&∀&&&Ε&−8&Ε&Λ(&&&∀∀7∀−ΕΕΛ%7 &ΕΞ0∃Ε&4∋−ϑΕ)9Ε∀4−

2&&

ϑ∀ ++−+]∆%)8∆%∋−∆ !+−∋+!−.)Φ7 +−!)Φ7 +6Κ0]∆%Τ7 !13

∗Λ<#Φ∀103Ξ&∀Λ∋&∀&&&%& :&−Τ !Λ∆(∀−Γ(∀−:Γ&∀.−Γ8&∀−.

)

( . !−4Ε + −!%∀− .−,− − ∀

(Ε∀&−∆,&&7&ΦΕ∀Ε&&&&−9&∀&Λ4#1Κ3Γ4#81+Κ3Γ,71.Κ3∃)1!Κ3

8%& 6ΓΕ&..0&(−∆Ε7ΓΕ∀&&&&∀&&&%& :−∗&∀∀Φ7Ι&6Γ76.ΝΝ−]∃& !Λ,&∀)8∆%∋./−ΓΚ∀&./ΚΕ7−

#,

(∆∃)8∆%∋Λ)4∗.:−!)≅1%& 63Λ:− )≅Λ)4∗.−ϑ%Λ)4∗. .−

(!∗

2&∀&,−&&,∀&−7&∀7∀&7&−∀&∀

Page 89: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ !/

%2Π∋<128Χ3

∗2&

∋Ε0Ε&7Ε&−&. &&∀Ν−

2&&

2&71.+Τ0+.%& :3ϑ∀ ++!− )8∆%∋ :−/∆ .6.−+ −∋ 6.−+)Φ7 − )Φ7 .+−!Κ

∗ΛΥ

)

( . /−4)Φ7%∀− .:−( /−6

%2Π. 7∀Γ & − 8 :−Ε%2ΠΧ∋<ΕΕΦ7%. 1)4∗ 30 & % : 1)4∗ . 3− ∋ &7 % 2Π ∋<Γ Ε ∀ −9 ∀ & % 2Π ∋< Ε &7%2Π)Ι∋<− ∆ & % : % 2ΠΧ ∋< &Ε. &−

#,

9∀(∆≅Λ+Κ& −

0 Γ Γ 7 7 % 2Π Χ % Π ∋<∀&Γ&∀9∀&7Λ&&

Page 90: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ /

∋Χ&#∋&18∃3

∗2&

7 &Γ Ε∀ ∋Χ ∀7 < Ε & ∀− ∆ & ∀Ε &7 & ∀&&−

2&&

∋Τ :Λ∋ΧϑΕ 6:−+∆ 6.−8& .−ς

ς)&&∀−

&(∆≅&∀7∀&&7∀ΓΕ∀Ε−)&7)4∗7 !ΓΕ&)4∗7Τ /)4∗. 7Τ /−

)

( .+−.

∋Χ,ΓΕ&Χ&#&ΓΕΗ&ϑ∋∆9&&)<4∋(,ΧΓΕ&&&&&−∋Χ& & & Ε ∀ ∀ &Γ &&7 & &−

#,

9∀(∆≅6!ΚΛ(Γ2&7Γ∋&Γ]&∋Ε−Ι&∀∀&7Λ,

Page 91: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ /.

∋< ∃&∋128Χ3

∗2&

∋&&&−∋ΕΕ%&7Ε&−

2&&

ϑ∀ − )8∆%∋ !−!∆ /6!−. −∋ ::−)Φ7 .::−6 )Φ7 .!−+Κ

∗ΛΥ

)

( . −4 6− )Φ7%∀− !−+, .−!

∃&∋Ε,−∆&Γ&13−

<+1=8Λ1Κ3Γ∋<Γ&%

<+# ∋178)1. Κ3Γ:&Ε&−&%

>?+8578)−+.Κ3Γ&ΕΓΕΓ&&

5788++≅ Α8=)1 Κ37Ε−

578#;)1. Κ3Λ77∀∆∋<−

Β178)&%

#,

9∀(∆≅Λ+!Κ& −

∋<Γ,∋<Γ% ΧΓ%6 (λΦΓ%.:,7∀ΙΓ&%Γ 7 7∋< Γ &∀−9∀&7Λ&&

Page 92: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ /

4−

∗2&

∆ΙΓϑ. 8&0Ε−(7ΓΕ&&7−

2&&

ϑ∀ 6− )8∆%∋ .−∆ .6− −∋ 6−.)Φ7 !−6 )Φ7 Κ0+.−.− :

∗Λ0

)

( .++−.

4−ΕΙ77ϑ.−Γ8&

#,

(∆≅/Κ Ι7 & − 8 + 8&−Ν6+Γ 6µ−ΓΕ&&−,ϑ∆−∀4−Ι&∀∀&7Λ&&

Page 93: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ /+

∋8Χ∋<128Χ3

∗2&

&Ε−∋&7∀7Γ−

2&&

ϑ∀ +:−/ )8∆%∋ −:∆ +: − −∋ +−)Φ7 +/− )Φ7 . −:Κ

∗Λ0ϑ&∀&Γ−

)

( .+− 4)Φ7%∀− −+ε9φ

∋8ΕΜ&&∀ Ε & & & − 2 ∀ 7 ∋ )Φ7 &Φ∋ 8&%& ∀ 7∋& −∆%)7Η2Ω(%Ω7 − ∆ (9 & & 28Χ: Κ&−∋ + Τ ! &7 ϑ8%<)8∆%∋ − )8∆%∋&]∆%Λ. 6

#,

9∀(∆≅Λ.Κ& ϑ8% −

∋∋<173−

Ε&∀Γ&&&∀7∀&−

Page 94: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ /

∆(#ϑΕ(Χ1#23

∗2&

∆ & ∀ & 1, .−3 Ε 7 & &Φ !−≅∀Ε∀7)∗≅Η−≅Ε&7∀+Ε&Ε&Ε&7.%& !−

2&&

ϑ<∋ ∗Λ0Ξ&(

)

( .−64 :−)Φ7 %∀−

∆ , Ε ∀ (Γ).−0(Χ,∆(−)Φ7ϕϑΓϕ 8∀ 7 ,Γ ϕΗ ! Κ Ε &− Ε 7 ∀ ∀ & χ+ − & &−%∀&&∀7Φ7&−

)&−&&7−

#,

)(∆≅. Κ ∀∀−Ι&∀∀&7Λ0

Page 95: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ /

+/−0+/−;−

!!

−!0 −!−

./−/6−!.+−.∗>∀=−

6−606−6)8&−

)4∗

Page 96: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ /6

0)8&−

∗2&

∆(ΒΕ−

2&&

ϑ∋∃&Λ. Κ

)

( 6−6

)&7(8−

#,

&7Λ:+Κ1(∆≅.+:Κ3−

Γ /+Γ!:. ( 8 (8Ε&77−

Page 97: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ /:

0;−

∗2&

(∀&&77&&ΕΕ−∆&(8&7Η&−

2&&

ϑ∀ ϑ 06+∆ .Γ.. −∋ !)Φ7 ..−! )Φ7 .!−Κ

∃&Λ.+ Κ

)

( +/−

∆&7 &7 ( 8− 9Ε7Ι,Ι∆Ι−

∆ . 7 Ε7 %& !−

#,

&7Λ..Κ1(∆≅66Κ3−

/:Γ!Γ//(8Γ∃7∃2Ε−∆ & & & Φ & ∀−∆Ε&&&−

Page 98: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ /!

#,

(∆≅6Κ∀&7−

∋7&7ϑ∀−

0∗>∀=−

∗2&

8 ∀ 7 & & &7Γ Γ &&&Ε&7Ε−

2&&

ϑ∀ − )8∆%∋ −.∆ 6−: ∋ −+)Φ7 0 − )Φ7 0Κ0+.−.− :

∗Λ1∀32&&∀≅77−)Φ7+ ΚΕ&Φ7−

)

( .+−.4 6−!

∗>∀=≅Ι&&∗7Ι∀−. ΚΕ7−

∆&∀7&∗7Ι∀(∀7ΣΓ≅ΓΘ=&Χ∀−

∆&&&&Γ&Γ − 8 && : 0/ Φ1/ Γ 3−

∆Ι&Ε∀−

Page 99: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ //

%)4,)%&,,ΧΥ(,Χ128Χ3

∗2&

8 & &Γ ΕΕ , Ε & (∆≅−7&Ε∀Ε∀−

2&&

)%γΙ∀∋<ϑ∀ < )8∆%∋ 0:−/∆ +.6− −∋ !+− )Φ7 ..− )Φ7 :−!Κ

∗ΛΥ

)

( . :−:4)Φ7%∀− .6−+ε9φ ∀

%)4,)%&,,Χ&7&7 &ΦΓ ∀ , 7Ε.−(,Χ∀<−∆&7Ε79ϑΓγ∆0ϑ)%−

2& Ι & ,7−∋&∀&&7 0Κ−870−

#,

9∀(∆≅Λ. Κ −∋)%γΙ08∀∋<9ϑ−

9∀&7Λ

Page 100: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .

)&8(1#23

∗2&

9 7 &7 Ε& Ε ∀ & Ε Ε & 7 ΗΗ ∀− ΧΕ∀Γ Ε ∀&&&−

2&&

ϑ<∋

ϑ<∋

)

( 6!−4 .−)Φ7%∀−, +−+

∆≅&∆Χ2 ∗∀ ∗ − ∆ Ε )& % (∀7 1 &3 Τ (Ε Ε 77Ε7Ε−

#,

Ε !/− ∗−9∀(∆≅:−6Κ−∆ 7 &&−

Ι&∀∀&7Λ

Page 101: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ . .

,Χ∋<128Χ3

∗2&

&Ε&Ε&&Ε&4%131(Ε4%Ε∀∀&)

2&&

ϑ∀ − )8∆%∋ −.∆ .−/ −∋ :!−+)Φ7 −/ )Φ7 −:Κ

∗ΛΥϑ&∀&Γ−

)

( ..!−+4 .− )Φ7%∀− −ε9φ

,Χ &7 ,#∃ 0 )&&−−&Γ&Ν&%≅%&−∆Ε&%Ε + &−,Χ Ε∋ϑ∋∀)Φ7 & −∆ (9 &&−∋#&&7Μ !ϑ8%<)−/)8∆∋

#,

9∀(∆≅Λ −

Ε&∀Γ&&&∀7∀&−

Page 102: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .

∆Π)∋<128Χ3

∗2&

2&&

2&&

ϑ∀ −/ )8∆%∋ /−/∆ ++− −∋ .6−6)Φ7 . .− )Φ7 +−+Κ

∗ΛΥ

)

( !−4)Φ7%∀− +−ε9φ !

∆Π ) ∋ Ε 7 Τγ ∆Π− 28Χ 7 & 7∀&−∆&%∀,7−

28ΧΜ&&ΕΕΕΦ7&

#,

9∀(∆≅Λ:Κ Γ&∀

9∀&7Λ

Page 103: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ . +

,128Χ3

∗2&

∋&7&0&&%07−∋&Φ&Γ28ΧΜΕ,&−

2&&

ϑ∀ )8∆%∋∆ −∋)Φ7 )Φ7 Κ

∗Λ∋Υ

)

(4 :−+)Φ7%∀− ( !/−/

,1ϑ7γ2ϑ73%2Γ. −∆&76+Γ −

#,

9∀(∆≅Λ0(∆≅ && %(−

ϑ&7 ∀&7

9∀&7Λ&

Page 104: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .

∀_

./−/000−.:−∀_1(3(−

/−.:−/+−/.−+:−−∀_,−

)4∗

Page 105: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .

∀_ ∀_,−

∗2&

∆Ε7&&−∆)4∗∀−,−

2&&

ϑ∀ .Γ .− )8∆%∋ :+−/∆ .Γ/!−! −∋ 6/− )Φ7 ! −/ )Φ7 .−Κ0+ −6− !

∗Λ

)

( −4 :−)Φ7 .−+ +−/%∀− .:−/

∀_,&&7&&−∆,6&7∀ Γ . &−∆&∗7Ι∀=Γ8&Γ,ϑΦ9∃5ϑ&)&8&−∀_,7−∀_ , ∀ 6Γ & .! & &ΓΕ& ∀7&ΜΕ−8 4 8&Γ , 2&Γ ΓΓ∋&ΓΓ Ν&∗&4 Ε0−

#,

ϑ∋ ∆∀_ &− ∆Εϑ∀ !ΓΕΕ−

Page 106: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ . 6

∀_1(3(−

∗2&

∋Χ&2Ε∀_Η−

2&&

ϑ∋ ∗Λ

)

( .:−4 −

∀_1(3(−Ε&Χ&2(−8. ΚΕ7∀_(−Ε&∀,−

#,

ϑ∋ Χ&2(−∀_1(3(−(−

Page 107: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ . :

∋∀∋&Φ∋

∗2&

8&Ε&Λ∗&Ε&∀&7&ΓΕ&&&Ι− ∀ Λ ∋ & & & & Γ Γ ∀7ΓΕ∀7−∆7&∀&&Γ&−∗77Λ&&Ε&7Ε77ΓΕ&&&ΕΕ−

2&&

ϑ∀ .+!−)8∆%∋−∆ .:− −∋ :−6)Φ7+− )Φ7Κ0+.−:− !1:3

∗Λ%%∀Λ8& :Ξ&(∀−/1Κ3

)

( . 6−,− − %∀− −+

∋∀&∀)Ε&0&Ξ)−

Ε/6ΕΝΝ&9& 6,79&Φ∋∀,&&&.!Γ&+Φ7−87&Γ∋∀&&&102] 6.−∀−./−02] :.−!37&Γ∃&Γ&Ε&&∋&Φ&7Ε&&∋∀Ε7Φ&&7&&&−∃&7Γ∋∀ΕΕ&&7&&−∋ΕΦ7Ε&&∀ :Γ&Φ&7−

#,

(∆∃)8∆%∋Λ)4∗..−!)≅∃13Λ:−)≅Λ)4∗!−6ϑΛ)4∗. 6−+

(!∗

2 & ∀ & , − & & , −∀&&−&7&&&∀&∀

Page 108: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ . !

∃&∋<128Χ3

∗2&

,Λ∆(νν /1+ Κ3−8&ΕΕ−9Λ ∆ Τ∃ / 1+ Κ 3− 8 &ΕΕ−

2&&

ϑ∀ .+− )8∆%∋ /−∆ .6/− −∋ 6−)Φ7 −: )Φ7 /−/Κ1&−−&−)4∗+63

∗ΛΥ

)

( //−:4)Φ7 +−!%∀− −:ε9φ ∀

∃ & ∋ &0 Γ & Τ7 − ∆ &Γ∀Γ&&7Ε&−

∆ ∀∋&∋Γ)Γ)&Γ2<∋&&∗7−

28ΧΗ Ε , 9− ∆&∀Ε.−77: Κ+ Κ−

(∆≅6Κ−

#,

9∀(∆≅Λ6Κ ,Λ)+ 7Γ&∀−9∀&7Λ&&

9Λ)+6 7Γ&∀−9∀&7Λ&&

Page 109: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ . /

∗∋<128Χ3

∗2&

∋&%Ε&&7−∆7&Ε% −ΓΕ&&%.+.−8! Κ−∆ &−

2&&

ϑ∀ +.−: )8∆%∋ .−:∆ :!−+ −∋ :!−+)Φ7 .+− )Φ7 .:−Κ

∗ΛΥ

)

( . .−.4)Φ7%∀− :−ε9φ ∀!

∗∋<Ε7∗7−∆∀%&∀&&−

7Γ 28Χ & &−

#,

9∀(∆≅Λ:6Κ& ∀ −

Γ&∀9∀&7Λ

Page 110: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ ..

Ι

!∀!∀!

.−000.−2∀<

.6− −00.−:42

.−000.−Π−

.+−+000.+−+−

+−6000+−6Π−

6−0 −!−:+−+Ι−

,&)4∗

Page 111: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ ...

Ι−

∗2&

Ιο ∀∀ ∀ & οΓ ο&ο ο−ο∆ΙοΕΕΓ&ΦΕ&ο&7&Ν7−∆7&ΓΙ&Ε−

2&&

ϑ∀ .:−! )8∆%∋ :−∆ +6−/ −∋ −!)Φ7 .+− )Φ7 −Κ0+.−.− :

∗ΛΥ∀Λ&∀

)

( +−+4 !−:%∀− −

Ι −Γ ./!+Γ &7 8&−ο98&Γ Ι ,7Γ Γο4−−ο 2 8 : 7 Γ ο ∃ ∃&&− Ι ∀&7 &7Γ & & ∀ ΦΓ Ε ∀ΟΝΕΓΕ∀ΓοΕ&ο −οΙ ∀ Ε&&&7Η&−Ι−7&ΕΓ

#,

9∀(∆≅! Κ∋3 2≅Φ )4∗3 8∀&∀.+)4∗3 ≅ϑ68

&−

Page 112: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ ..

Ι0Π−

∗2&

∆&7ΦΕ−∆&&&−Χ7&&7−

2&&

ϑ∀ )8∆%∋ ∆ ++ −∋ !−)Φ7 + − )Φ7 !Γ6Κ

+.−.− :

∗Λ∀ΓΛ&∀

)

( +−6

Π−. ΚΕ7Ι−Π)7∗).ΓΕ)∋Γ8&&2∀Γ7 :−∆∀ ∀ Ε & Φ Ι −∀8&&ΕΓ)4Ε∋&Ε−

#,

9∀(∆≅:Κ27)∋1−)7∗.3−∆&&Ε+)4∗&∀−<&−

Page 113: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ ..+

Ι042(−

∗2&

7&−∆∀∀7&)40Ε&&&−

2&&

ϑ∀ +.−. )8∆%∋ .+−∆ :−: −∋ .−)Φ7 .!−: )Φ7 −!Κ0+.−.− :

∗ΛΥ∀Λ )Φ7+ Κ0

)8∆%∋6Γ.,0

)

( .−:,− −

42(− Ι 1 < 3Ε9Ε277ο∀#≅%−≅−∆ϑ−ο42Ε7 ( (− Χ ∃ 2 ≅ ∃−ο∆ο&ΕοΝΕΕ−∆∀∀&& )4 ΕΓ ϑΕ Ε − ∆ ∀ ∀ ∀7&&Ε)8∆%∋Ε Κ

#,

9∀(∆≅! Κ ∋∀&&&∀&&)4∗ −∋−&∀

Page 114: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ ..

Ι0−

∗2&

∆&&∀&&ΕΗ&∀7&77−∆&7ΕΗ−&ΗΓ7∀−

2&&

ϑ∀ .−. )8∆%∋ 0−.∆ !−: −∋ −!)Φ7 0 −6 )Φ7 0 −:Κ0+.−.− :

∗ΛΥ13

)

( .+−+

−Ι. ΚΕ7Ι−Η&Γ−8Ε.Γ+ Γ .<+=∀1≅ϑ3−87Ε6Γ Γ 7−8−

#,

9∀(∆≅. Κ1Ι&3

ϑ∀1∋43−=∀1≅ϑ3−∋&7ΓΙ−

Page 115: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ ..

,&1,&3

∗2&

∀Λ8&&&&7&−Λ8&∀Γ7&&&&ΓΓΓΗ&&∀−

2&&

ϑ∀ +Γ/ :− 2] !)8∆%∋:/−.∆ /!/−∋+!−.)Φ7 /−)Φ7 6Κ0!−+− !1.3

∗Λ:<#Φ∀1Υ3∀Λ∋&∀&&−∃& !Λ∆&∀6−+Γ8&∀:−+

)

)4∗( ++−+4Ε :.− ∀

4Η&&7ΓΕ.:&∀Ε& Γ &&&∀&Γ&Γ−8Τ :∀Χ&,&−Ε&Ε4−

827 ΓΕ+!&.Γ. !7Χ&&0∀&Φ2,ΓΕ&&++Ε&−2Ε&ΓΦ7Ε9& Ε&Ι&. !−∆.ΕΤ7 !Ε.−/Κ1Υ+−+Κ(2(37ΓΕ0&&−:ΚΓ77&&&−Κ10−+Κ(2(3−

#,

2] !)8∆%∋Λ)4∗:/−.&.6< /< !Λ6−:&∃&Λ)4∗6−6ϑ%Λ)4∗6+−+

(∗

%&7&−2&&∀&∆&∀Ε%∀&−

Page 116: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ ..6

∆7(−128Χ3

∗2&

9&&+&& ∀

2&&

ϑ∀ .− )8∆%∋ +:− ∆ ++.− −∋ :− )Φ7 .:− )Φ7 +− Κ

∗ΛΥ

)

( 6−!4 .−)Φ7%∀− −9 ./− ∀

∆∆,Ε7≅7∋Μ∀7ΕΓΕ&∀7∀∀Γ&&7−8&7Ε∀Ε7Γ∆0∆∆∋&&20 ΚΕ7∆! ΚΕ7Ε7∋∀∀&−∆Ε+1,73&728Χ−&&ΧΕ7∆Γ−

#,

9∀(∆≅Λ6Κ &&Ε %0,7−−∀

9∀&7Λ&&

Page 117: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ ..:

∋08∀∋<128Χ3

∗2&

∆&∗&&Ε&&&

2&&

ϑ∀ − )8∆%∋ −.∆ .− −∋ −.)Φ7 :−! )Φ7 .−.Κ

∗Λ

)

( :6−.4 −/)Φ7%∀− .−+ε9φ ∀

∆&7≅Ε77Γ∀Φ77&∋0−∆&7./!Ε0&&:0!−∆7Ε&Φ %. 1)4∗.!−!3−8∀Γ7−∆7∀7&−∆∀−

∆ΕΛ,∋8∀∋1.Κ3Λ)Φ7%.−Γ%.−6−,∋8∀∋Ε7Τ∆γΓγ∋ΞΓΕ&7Ξ∋<−

Ξ∋<1/Κ3)Φ7%!/Γ%6−∆&7∀&7&&&∀Γ%Γ∗∃−

#,

9∀(∆≅Λ!6Κ Γ &∀Γ Ι ∀ 7 7Ε1Ξ∋<,∋8∀∋30%.!Γ&ΕΕΕΕ−

9∀&7Λ&&

Page 118: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ ..!

)Χ82%88∋128Χ3

∗2&

% 7 ΕΕ & && %−&&&−∆Ε&7Ε&−

2&&

ϑ∀ ..−. )8∆%∋ :−/∆ ./−6 −∋ −)Φ7 −! )Φ7 −!Κ1&−−&−)4∗3

∗Λ

)

( /.−4)Φ7%∀− . −:ε9φ ∀

)Χ821%388∋&∀%& −∆∃7. ..−∆∀Ε0)Γ∋%4∋&∋∆17∋∆3Ε..Κ)Χ82−∆7∋7,≅−

∆∀777−

#,

9∀(∆≅Λ: Κ ΓΓ&∀

9∀&7Λ

Page 119: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ ../

71∋Φϑ3

∗2&

∆4&&&Ε7&Λ ∗Γ&&&&&&Ε 8&&0&7&

%&7&&7&&&&∆,0Φ7∀&ΕΓ &Ε &&Ε−8∀Φ7&Γ&&7−∃&&∀∀Ε7

2&&

13 −! )8∆%∋ −+∆∋ .+ − ∋−/)Φ7 +.−! )Φ7∗ Κ0Τ7 !

∗Λ1#ΛΥ3∀ΛΞ∀&ϑ∀ :Γ2 !ϑ(∀∀)8∆%∋∃7 !ϑ(∀∀Λ/−&Γ&

)

( /:− ∀

&4&&77Ε..&&7ΓΦ7&∀&)./!/∋Φϑ∆&−Γ 0Φ∀&ΕΓΕ&&−6 Κ&&&7∀∆7Γ

∆.!0&7%& !Γ&7&7&ΕΕ&∋Φ&7&∀&0%Ε7%7−∋&Ε,7Ε&

#,

∗∗)8∆%∋13Λ .+−+)≅∃13Λ:− )≅Λ /+−+ϑ%Ε%Λ /+−.

(−Χ3 #∆/)∀∀∗

2 & ∀ & , 1∋ !7∀Ε:/−63Ο%&∀ Ο & & &Ο2&7∀Ε&,&7&&&00∀

Page 120: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .

ϑΕ&∋∋<1Ξ,∋<3128Χ3

∗2&

∋&7∀7ΕΓ 7 &7 &∀7Γ&&4%−2&&ΕΙ&

2&&

ϑ∀ Γ!!− )8∆%∋ .−:∆ 6!!−! −∋ ::−)Φ7 :−/ )Φ7 . −6Κ

∗ΛΥϑ&∀&Γ−

)

( !+−64 !−+)Φ7%∀− ( −/ !

8 :∀Φ7∋&ΦΞ,∋<−∆ Λ ∃ 2 1 & Ε3Γ 1. & . 3 ∋&7 +& %3−Ξ 7Ε!ΚΞ , 7& Ε& &7Μ ∀7 && &∀ ∀7 −ΧΕ∀Γ ∀7 7 Φ &&&∀−

#,

9∀(∆≅Λ/Κ

& ϑ8% −

−Ε&∀Γ&&&∀7∀&−

Page 121: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ ..

%≅∃ΙγΧ∋<128Χ3

∗2&

2&&

ϑ∀ +.−! )8∆%∋ −:∆ .− −∋ .. −+)Φ7 ! −! )Φ7 .!−+Κ

∗ΛΥ

ϑ&∀&Γ−

)

( !:−:4 6−6)Φ7 6− %∀− −ε9φ

%≅∃ΙγΧ∋<%&7Ε&Ε − 2 &7 &∀ Ε &7& ∀&<0 − ∆ & ∀ Φ7&7 ∆ ∀ & 8Γ Ε ∗Γ ϑ ,)−∋ + Τ ! &7 ϑ8%<)8∆%∋ +− )8∆%∋&]∆%Λ. 6

#,

9∀(∆≅ΛΚ& ∀−

%≅∃Ιγ∋<−

Ε&∀Γ&&&∀7∀&−

Page 122: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .

∋−−∃γ0∃Π∋<128Χ3

∗2&

% 7 Ε ∀ & & − ∋ &Ε&7&∀7&−9Ε&7&&−

2&&

ϑ∀ +:Γ6.−+ )8∆%∋ /Γ /−6∆ +Γ/6−! −∋ .Γ6 /−+)Φ7 ./Γ/− )Φ7 +−/Κ

∗Λ∋

)

( −/4 −.)Φ7%∀− ε9φ ∀

∆∋−−∃0∃,ΕΕΕ.. Γ 7&.&−∆&ο∀Λ#&∀Γ)7Γ∆#∗#−∆Φ&)&−

#,

9∀(∆≅Λ+Κ& −

ϑ&9∀&7Λ&&

Page 123: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .+

&1#23

∗2&

∃ Η Ε && 7 ∀ &7 Γ ∀ ∀Ε&−∆4Χ∋ &&Ε∀4−

2&&

∃&ϑ∀ .:− )8∆%∋:−6∆ .+.−!−∋.+.−+)Φ76−6 )Φ7 − Κ

∗Λ∃04Χ∋Υ∃&0

)

( 6!−4 .6−)Φ7 −.%∀− .−2% !

Ξ ∃ ∀− 4Χ ∋& 7 (& ∋7 Χ Ε Ε ∀&7ΕΕΝ&∀Γ 7 7 . 7− ϑ & 7 4Χ∋ &&&(−∆ ∀ , . ∃&Γ &7Γ &2%2&

7 ∆8 &Γ Ε&Ε−8ΕΚ4Χ∋&−

#,

∃−Λ6 4Χ∋Λ ∀ 6!(∆≅:!Κ

Η &7 1, .3 & 7&7−∆4Χ∋&7&7&∀Ε&−Ι&∀∀&7Λ

Page 124: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .

−ΧΧ∋<128Χ3

∗2&

&%&−

2&&

ϑ∀ /:− )8∆%∋ ..−∆ .Γ+−! −∋ .!:−/)Φ7 ./− )Φ7 .−/Κ

∗ΛΥ

ϑ&∀&Γ−

)

( !−/4 −+)Φ7%∀− ε9φ !

−ΧΕΗ&&&ΓΝ7Γ&∀−∆Γ&&Γ&−8 ∀Φ7∋8−Χ&)&−∆(9&&−

∋ + Τ ! &7 ϑ8%<)8∆%∋ 6− )8∆%∋&]∆%Λ. 6

#,

9∀(∆≅Λ66Κ& ϑ8% −

−Χ∋<−

Ε&∀Γ&&∀7∀&−

Page 125: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .

∆∀,−

∗2&

Η∀∀7&&∀Γ&&Ε& 8&&− ∀7 Ε& && 7 ∀& ΤΓ Ε 7 ∋ ∃8Γ&Ε∆∀,−Τ&∀7Ε&& & ΓΕ& &7Γ&&&∀&&&∀&&− 9 &&7 Τ Τ&∀&Ε∀∀Ε−

2&&1)4∗3

ϑ∀ 66− )8∆%∋ +−∆ . − −∋ +.−)Φ7 +− )Φ7 .Κ0+.−.− :

∗Λ&∀+.−.− :&&Λ∆<)8∆%∋−6.Γ2&&∀.−6+Γ)8∆%∋<876−!−)&−Τ−

)

( 6−64 −.%∀− .−,− −: !!

∆∀,−)Ε&∀− ∆ & Ε Ε 1++Κ<+ Κς3Γ 8 ∆∀ 1Κ</Κ3Γ 1−/Κ<!−Κ3Γ∃≅1.:Κ<.−Κ3Γ % ∀ 1.Κ<./Κ3Γ Χ<∆ ϑ∀<16Κ<.Κ3−Τ−&7&7Ε&Ε∀− ΚΗ !−

∆ 7 ΧΗ &Φ ∀ ∆∀ : &Τ !−ςΚ∀<Κ)8∆%∋

#,

9∀(∆≅6Κ &Γ && # ∀< 8&ΓΧ−

Page 126: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .6

∆∋Χ∋<128Χ3

∗2&

8 & & ΕΕ % &7 Ε & &−&7&−Ξ&&7ΕΙΕ−

2&&

ϑ∀ .:− )8∆%∋ !−6∆ ./ −: −∋ .−)Φ7 6!−: )Φ7 +6−.Κ

∗Λ0

)

( : −/4)Φ7%∀− .−ε9φ !

∆∋Χ∋<Ε2(,−∆∋Ε &7 ΧγΙ Χ ∋<− ∆ , & & ∀ ∀& & 7 &Γ &− ∆ 2 ( , %Εϑ&7−

#,

9∀(∆≅Λ6 Κ−

Ε%ΓΕ2−(&7Γ&∀9∀&7Λ&&

Page 127: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .:

)2;

∗2&

) ; && 8&−∆ 7 & ∀ 1 < π .−63− ∆ && Ε∀7Ε&&& Ε∀∀&)−

2&&

ϑ∀ 6− )8∆%∋ −:∆ . − −∋ !/Γ.)Φ7 −6 )Φ7 .− Κ0+ −6− !

∗Λ6

)

( !6− !

8& & &7 8&− ∆ &7Ε Ε ∀ 7 007 &ΩΧΙΩ− ∆ & ΧΙ 7 &7 & − ) & &7 Ν&700&Ε&&−)Ε7Ε7∋ :ΕΕ)ΓΕ7,−1Γ:Κ3Γ2(,−1/Κ3Γ8∀&7−1. Γ.Κ37−1.!Γ.Κ3−∆&7 Ε Ε& & 2; Β1. Κ3Γ,∗)216Γ6Κ3);>21. Κ3− ∆ Ε77 1.Γ/Κ3Γ, 16Γ+Κ3− ) !7Γ)9,2>ΙΘ−

#,

9∀(∆≅: Κ.−∆&&&Ν−

Page 128: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .!

%& %%Γα(1#23

∗2&

∆ & &7 & & Ε ∀&−∋&&Ε.−8& Ε & &7 &∀ 0∀&−

2&&

ϑ<∋

∗Λ%%0α(Υ

)

( !−.4)Φ7%∀−

!

%% & &7 1 +6− 7 43 & Ε 1 3 % Ε∀−

∆ α ( 14% −:3 & .<.6 ,, ϑΙ &Ε&∃%−

#,

ΧΛ 9∀(∆≅6−!Κ% 1:6Κ7&&73

%%(∆≅&∀6Κ−α(7%−

Ι&∀∀&7Λ

Page 129: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ ./

∋<128Χ3

∗2&

∆ ∀ 7Χ−Χ7 !Ε)4∗.6−1. −67 :3∀−)&∀7−

2&&

ϑ∀ +!−6 )8∆%∋ −!∆ .Γ. −/ −∋ .Γ /− )Φ7 .!/− )Φ7 .−6Κ1&−−&−)4∗3

∗ΛΥ

)

( 6+−4)Φ7%∀− . −− . −

!

∋<&Ν∀∀∀& &− Ε 7 2(1:.Κ3<)Γ,∋&−

28Χ & )4∗ . 1Ε ∋<3 &)4∗:+Γ/Ε)Ι7../∋< Ε7&7 Χ − ) ∀ 7)4∗! −

#,

9∀(∆≅Λ:/Κ

) . ∀− &(∆≅

.−77Γ0&&−

9∀&7Λ

Page 130: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .+

∋<4#∆128Χ3

∗2&

)&&∀

2&&

ϑ∀ Γ!6−/ )8∆%∋ .−∆ 6−6 −∋ /−:)Φ7 !6− )Φ7 .+−.Κ

∗ΛΥ

)

( :/−4 −+)Φ7%∀− +−ε9φ !

∋< 4 # ∆ 14∆3 . Κ Ε 7 ∆κ0ϑ−4∆&+Λ 0 & 00 & Γ ∀ ∀&7Γ% 0&7 & ΕΕ &7&40∆ &&Ν.0Ε &&< ∀− ∆ &7 Ε 1. &&&3Ε&−

#,

9∀(∆≅Λ++Κ& ∀

Ε Λ )4∗ : & &∀ Ε Λ )4∗ / ΕΓ&∀9∀&7Λ&&

Page 131: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .+.

<%8128Χ3

∗2&

≅&&70Κ&&−Φ7Ε7−

2&&

ϑ∀ /−6 )8∆%∋ !−:∆ .!− −∋ /−)Φ7 − )Φ7 ./−/Κ

∗Λ0

)

( !.−/4)Φ7%∀− .−.ε9φ !∀

<%8Ε 67∀−∆∀∋2γΠ8∀81283−<%8Ε:+,7&&ΕΓ(λ&Χ−

28ΧΗ & Ε0& &−

#,

9∀(∆≅Λ! Κ ,7

9∀&7Λ

Page 132: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .+

)∋<1(3

∗2&

Ξ∀)∆%7Ε&−8Ε1&∀3Γ)∆.+ ∃Ξ1.Γ ∃Ξ .+3Γ)∆ && Ε && & Ι&&7−)∆&&∀2Ε&∀ΕΓ∀77)∗ΕΕ−∗,Ξ7&∀∀Ε)∆−7(45Ε)∆)8Ε(45∗,Ξ−≅77&−

2&&

ϑ∀ .Γ+ )8∆%∋ 0Γ+∆ +6Γ6 −∋ :!Γ:)Φ7 ..Γ/ )Φ7 !Γ+Κ1)4∗&&.< :∀3

∗Λ%&)∆(45&&Τ !ΟΦ

)

( !−: 4 <)Φ7 < <%∀− < !∀

) ∋< 1Ζ)∆[Ο <%3 ∀ & )ΕΕ&Ε&ΙΙ7∀17%3−)∆ ∋8∃(1&&)4∗+:3∀721Ζ2[Οϑ3−(45&Ι&∀&∀&)∆−.−)4∗ −:Φ)&∗ 8(1Ζ)∗[3ΓΕΕ)∆−)4∗+− ∗,Ξ∋<1Ζ∗,Ξ[3ΓΞ#,0∗∗γγΓ%ΓΕ& −Ι& ΓΕ &Ε∀&Ε7−)8ΙΕ)4∗.6−!−

#,

, &7 ∀&(∆≅Λ.−)∗Λ(∆≅&−:Κ−∗,ΞΛ(∆≅&−6Κ

2Ι&&&Λ.−)∗ΛΓ<&&Γ≅∋∆&)4∗6−:1&Γ(∆≅&−:Κ3 −∗,ΞΛΓ<&&

Page 133: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .++

2Χ∋

∗2&

∃&Ι&ΕΛ∀&Ι&7Γ&∀7ΕΕΦ7ΕΙ&77<&&∀0−∃ΕΛ&72∀Ε∀&∀&−∆Γ∀Φ7−&7&Λ∀&Ε0ΓΕ&&&7&∀7−∃&&&∀&7−

2&&

ϑ∀ :/− )8∆%∋:−∆ . −: −∋ −)Φ7/−/)Φ76Κ0+.−:− !1:3

∗Λ∀ΛΞ∀ :0∃ !Τ !ϑ%Λ)8∆%∋−.1η:− 3Ξ&(∀+−!1Κ3

)

( :.−+,− . −6 !

7&&&&∀2∃,Γ∋∀#)Γ)&&#∆&Χ&&−ΧΦ,ΓΕΓΕΕΓΓ∃7ΓΓ4Γϑ,7−&∀Λ)∃)∋1)Γ∃)Γ∋&3ϑ ΚΟ)∃)∋ΚΓ∋&+Κ∋&&.Κ−

∆∃ΝΝ&..∀702(7∋ϑ∋1∋∋3Τ7 ΓΕ&Ε . .−&(9Γ∋∋Ι&Φ7+.−6Ε&&&Φ7/−/−

#,

(∆∃)8∆%∋Λ)4∗.−:)≅∃13Λ6ϑΛ)4∗:+)≅Λ)4∗/

()!∗

∀∀ΓΓ&7&∀2(∋−,&7−&7&&&−∀Λ∗%& :1ϑ(∀7Τ !%& !∀&∀∃& /−3

Page 134: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .+

)8∀Χ∋<Χ∀128Χ3

∗2&

∋ΕΕ%&7Ε&&∀Ε−∋&∀Ε&&−

2&&

ϑ∀ ...− )8∆%∋ / − ∆ .Γ+::−6 −∋ /−.)Φ7 ./+− )Φ7 .− Κ

∗Λ

)

( :.−:4)Φ7%∀− /−+ε9φ !∀

∆)Ε 77Ε:7 Χ∀Γ Ε . Κ Ε− ∆ Λ9ΕΕ&&&&&&&&

28ΧΗ & Ε ) + & ϑΠ∀Χ& & θ−

#,

9∀(∆≅Λ:.Κ Γ 7 7 &Γ&∀

9∀&7Λ

Page 135: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .+

∆%∋<128Χ3

∗2&

%&∀Ε&&&Ε∆%−

2&&

ϑ∀ Γ:+−: )8∆%∋ .Γ:+−6∆ .Γ. .−6 −∋ + +−:)Φ7 Γ6−! )Φ7 .−/Κ

∗ΛΥϑ&∀&Γ−

)

( :+−+4 :−+)Φ7%∀− 9 !∀

∆%∋<&&∀%−∋ ϑ&∆7∋<∆%∋<−∋ 6!:−/ΚΜΕ−ϑ&∆7∋<Ε7∋ΞΕ((Γ∆&,8(−Γ∀∗#−(−−Γ∋∀∀&)Φ7(−

∋ + Τ ! &7 ϑ8%<)8∆%∋ Γ )8∆%∋&]∆%Λ.

#,

9∀(∆≅Λ Κ Ε&∀Γ&&&∀7∀&−

Page 136: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .+6

)Φ7(1#23

∗2&

∆ 7& & && ∀7 . ∀ &&−

2&&

ϑ<∋

∗Λ

)

( .:−/4 6.−6)Φ7%∀−

∆7&&&7≅Ε&Ε]Ε: −

#,

& &Γ ∀&&−9∀(∆≅ Κ

∀7&&&−Ι&∀∀&7Λ&&

Page 137: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .+:

)∋1(3

∗2&

0∆Μ7∀7∗∃&Μ−∆∀&7ΓΕ& Ε ∀Γ 7Ν Μ ∀ & Φ−

2&&

% !&7)4∗.Ε&)4∗..∀∋∗)−8Ε∀&7)4∗.6−

∆Μ∀7∀Γ7∀7&≅∃∗&∋,6 Κ∀ !−

)

( ::−62%#∆∗ −.4 1.!−.3)Φ7 0 0%∀−0

Ψ )∋&Ε∀&Ε&∀&&Ε(45− ∆ & Λ ∗ ∃&Γ ,& ∃Γ(∀8∀−

Ψ ∗ ∃& & &7 Ε& Ε ∀ 1≅∃Ε&Ε,3−

#,

.!−≅∃−/−!−−69 −(∆≅ς.Κ

0∗Λ−0∆&7&&−&

&&−

ς(∆≅&&ΖΝ[7

Page 138: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .+!

ι>)=,−

∗2&

% Ε0&7&& &7 Ε & &Γ &&&&7 && ∀ΓΕ& ∀ ∀&7−ΧΕ∀Γ&77 7& ∀&Γ & &&7Ε 7 &− ∆ &7 ∀ & Ι7 &&7 & 8&&&&−

2&&

ϑ∀ /.− )8∆%∋ ..−/∆ .:−6 −∋ +:−!)Φ7 6−: )Φ7 .!Κ0+.−.− :

∗Λ2&∀+ −6− !−&7&&−

)

( :+−!4 −)Φ7 .−6%∀− −.,− .−+

ι> ) = ΕΓ & &78&&∀−∆&7Ε Ο%ΘΕ& &ΕΓ & Γ ) Ε& & && 0&&∀Γ Χ Ε& & & &7 &,ΘΕ&&&Ε&ΓΓ&&− 8∋ :%=∴−ι> ) = & ι> )=−ι>ΕΕ,0:1.Κ37Ε&Ε &7Η ,ΙΘΑ /ΚΕ7 −,0:&7−

8 :Γ&70∀0ΕΦ7&7Η&ΦΘ−Γ2−

#,

(∆≅Γ:Κ ι> 6!−:Κ & − ∋&& &∀ ∀7Γ Θ 2Γ∀

Page 139: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .+/

∆Ε,%∀(1#23

∗2&

∆∃&ΦΕ&&&&−8 ∀Ε&&∀−8&−

2&&

+.∃& :ϑ∀ −6 )8∆%∋ −∆ ./ −6 −∋ .−:)Φ7 6−+ )Φ7 ++−:Κ

∗Λ

)

( .:−4 .−6)Φ7%∀− :−/

∆ & Φ ∀ ! 7Ε&.Γ/!∀&Γ&& ∃&− ∆ &Γ ∋ ∃Γ && 7 ∀ ∀ Γ & &∀Ε2ΓΕ −

#,

≅ 2 ! χ.!−61−/3 χ!!1. !−+3 Ε &−(∆,%≅6+Κ−

∀ ∃− ∃−(∆,%≅&∀6Κ−Ι&∀∀&7Λ&&

Page 140: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .

8%Χ∋<128Χ3

∗2&

)&& Ε & & & & − ∆ = &Ε−∆Ε∀&&Ε&&&−Ξ&1ΕΝ12∆)3ΓΕ&&Ε&−3∆∀7&&&−

2&&

1.∋ !0+.∃& /3ϑ∀ ./+−: )8∆%∋ −:∆ .+:− −∋ − )Φ7 +− )Φ7 +.−Κ1&−−&−)4∗−+3

∗ΛΥ∆&7&&&∀−Ξ&7Ε∀&&−∆&&&07 /

)

( /−/4 ς.−!)Φ7%∀− ε9φ

0)& && & &∀ ΦΕ∀−

8%γ∀7&Ε+/Ε& 7 %− 8 ϑ∀ : % ∀Φ7∋&&Φ&−19ΕΛ∋&16 Κ3Ε1 Κ338%)γΕ./6/−∆Λ&,Φ7 ∀7&∀&∀∋ Τ !ϑ8%<)8∆%∋ .!−:]∆%)8∆%∋ )4∗ 0.−:1∀−&)4∗Υ∃−3

#,

9∀(∆≅ΛΚ

& ϑ8% −

Ε&∀Γ&&&∀7∀&−

Page 141: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ ..

478∀1(3

∗2&

-∆Ε∀Φ7)4∗−&&∃−-∆Ε&&Ε−

2&&

∆ !7−)4∗. &&

2%&Ε−

47Ε∀2%&+ Τ 6−Τ7 !,−:&&&−

)

( .−2%#∆∗ −.4 −:)Φ7 0 0%∀−0 ∀

Ψ ∆&7Ε71+:−Κ3Γ1+:−Κ3∀1Κ3−

Ψ 47Ε∀Φ2%−Ψ ∋Ε ∀ %)4∗

#,

∃/−+ΞΕ−:2&& −+9 +−(∆≅ς. /Κ

0∗Λ−047 & 7 1, .3Γ 1,.3∀1,+3−0∋∀Φ−

ς(∆≅&&ΖΝ[7

Page 142: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .

ϑ∀Ν7∋<128Χ3

∗2&

∋ΕΕΕ&7&&ΕΕ&7−4ΕΕ∀ 7 & ∀ Ε ∀ & &7∀7−

2&&

ϑ∀ //:−6 )8∆%∋ 6.−∆ .Γ.!/−! −∋ !/−/)Φ7 /.−! )Φ7 .−+Κ

∗Λ∋

)

( :−:4)Φ7%∀− ε9φ

ϑ∀Ν7∋<&0ΕΝ7&0−ϑ∀Ν7Ε7 Ε7ϑ∀∋<−∆77%&)&−

#,

9∀(∆≅Λ.Κ& ∀

ϑ&

9∀&7Λ&&

Page 143: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .+

Χ

− 00− Χ=>−

./−00./−Χ−

.−.. −:.−.+/−Χ−

#)4∗

Page 144: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .

Χ−

∗2&

∆ ∀7 & && &−% && &Ε]9]7−

2&&

ϑ∀ .−! )8∆%∋ 6−6∆ !+− −∋ !−6)Φ7 .−6 )Φ7 .!Κ0+.−.− :

∗ΛΧ#&7Χ=>&#&−

)

( +/−4 .−.,− . −: ∀

∗∀&∀7&7−Χ1Χ3Η&7Χ−Χ=>&7−

#,

Χ−Γ&&&∀Γ ∀7#1Χ−3

&70

Page 145: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .

Χ0Χ−

∗2&

∆&7Χ2&−Ε&Ε&8&Ε7−

2&&

∗Λ0

)

( ./−

Χ2−1Χ23ΕΙ7&&7Χ13−

#,

(∆≅/Κ &7Γ 6 .−+! Φ−∆Ε7∗7Ι∀! Κ∀

Ι&∀∀&7Λ(∆≅

ϑ∀ .Γ+ )8∆%∋ .Γ ∆ 6Γ! −∋ Γ/)Φ7 Γ. )Φ7 .Κ0+ − 6− !

Page 146: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .6

≅=

∀!

.−/ −..−!Θ−

.−/.−/>Α−

.6−..6−.≅=−

)4∗

Page 147: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .:

≅=0≅=−

∗2&

≅=Γ∀∀7Γ∀&Γ&&&−−

2&&

ϑ∀ −+ )8∆%∋ −!∆ 6− −∋.6−:)Φ7 .−/ )Φ7 +−.Κ0+.−.− :

∗ΛΥ

)

( +.− ∀

≅= & ∀ 8&− 8 & &Γ Ι&Γ &− 8 Ε & − >Α Ε &7Γ 7 ≅=ΓΕΕ&∀−

≅= & & ∗& . ΓΚ 2Χ−∆Ε≅=Θ−ΓΕ7δ∃−ΤΘ−

#,

9∀(∆≅Λ: Κ∋3 273 8∀&∀Ι&∀∀&7Λ&&

Page 148: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .!

≅=0Θ−

∗2&

∆&7⊥&&7&≅=&⊥&7⊥−

2&&

ϑ<∋ ∗Λ9)&

)

( .−!%∀− −.

∆&7&7−ΘΕ/Κ≅=<>Α−Θ&&−

2ΙΑ;>%−Γ&7Ε7)9≅=ΡΑΓΕΘ7−%ΕΕΚ≅=<>Α−

9ΕΓ∆∃−Τ

#,

&7Λ/!Κ1(∆≅. Κ3

∀,ΓΓ) ∃7 − 4 ≅ − 1Κ&3∆&7Ξ&(−&&Φ&∀−∃&Λ. Κ−

Page 149: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ ./

∋2∋∃∋128Χ3

∗2&

∋ΕΕΕ&7&&−∋&&&7&−∆&&∀Φ&Ε−Ε∀7&&−

2&&

ϑ∀ 6Γ +−. )8∆%∋ ::−:∆ Γ. −! −∋ .Γ:::−+)Φ7 .Γ..−. )Φ7 + −+Κ

∗Λ

)

( −+4)Φ7 +−%∀− ε9φ

∋2∋∃∋)Η7&7&7!−7−∋2Μ&. &−∋&∀Ε7−. Γ Ε%7∀.:Γ ΕΕ−

∆&Ε%&+. !

#,

9∀(∆≅Λ Κ& ∀−

9∀&7Λ&&

Page 150: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .

ϑ∆Χ∋<128Χ3

∗2&

∋ Ε & −∋ ΕΕ Ε &7&& ΓΕ+Ε∀ Ε&−

2&&

ϑ∀ .Γ!− )8∆%∋ ./−∆ .Γ −+ −∋ :/−6)Φ7 − )Φ7 ++Κ

∗Λ∋0

)

( :.− 4)Φ7%∀− ε9φ ∀

ϑ∆ Χ ∋< Ε .!/. − ϑ∆ Χ ∋<Μ 7 ϑ∆ , 1Ε 7 &3Γ ϑ0∋∀& , 1 &&3 ϑ∆ & , 1& &3− ∃ 6Γ 7−ϑ∆Χ∋<&)&.Γ −

#,

9∀(∆≅Λ6Κ& ∀−

9∀&7Λ&&

Page 151: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ ..

∋∋128Χ3

∗2&

8 & & ΕΕ Ε Ε &7Ε & &7Μ&−&−

2&∀&Ε&Γ&&7&&)&Ε∀7ΕΕ&7−

2&&

ϑ∀ .Γ.:!−+ )8∆%∋ 6/−∆ :+−/ −∋ +6−6)Φ7 !−/ )Φ7 ++−Κ

∗ΛΥ

)

( 6:−.4)Φ7%∀− +−+ε9φ ∀

∋ & &7 && &&7 7Γ && & − ∆ &7 &&)&−∃ΙϑΧ1 Κ3∋∆1!Κ3Ε2160:Κ3−

#,

9∀(∆≅Λ Κ& −

∀9∀&7Λ&&

Page 152: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .

8∀2−

∗2&

8∀27&∀∀Ε&− 8 & 7 7 ∗#% Ε &&−(&&&Ε&Ε&7∀&7∀−∆∀&&&&&−

2&&

ϑ∀ 6+−6 )8∆%∋ .−∆ ..+−: −∋ +!−6)Φ7 −6 )Φ7 .!Κ0+.−.− :

∗ΛΥ∀ΤΗ !Λ2&.−.!ςΓ)8∆%∋<∆8Λ+−:ςΓ)8∆%∋<8−+6ςΓϑ%<)8∆%∋−:.Γϑ%<)8∆%∋−:ς−ςϑ&&

)

( 6+−4 −%∀− −.,− −/ !

8∀2&Ε&Λ8∀2−(−Ε&Ε ( (∀ −(−Γ 8 ∋−− ϕ −(− Κ (%&−(− ∆∀ ⊥ )8∆%∋ : .+−/−8∀2Ε//−:Κ8∀2∀(−18&737∀&&∀1∋83 && &Γ :Κ (7Ι∀ −Γ Κ 21ϑΕ73.Κ4∋81(3−∆Η&∀7 &&&∋8&1((∀83&&71(7Ι∀3−

∆ 8∀ 2 7 &Φ ( (∀ 8 (7Ι∀ :− ∋ .+− &7 ∀7&&&&&8∀2⊥&&&7&−

#,

(∆≅Κ∋−

Page 153: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .+

,ϑϑ∋<128Χ3

∗2&

∆&&∗&& :−∆&7∗∋<Τ !)4∗9−87Ε&∀)4∗96:−Ξ∀&&∀Ε&&−

2&&

ϑ∀ ! − )8∆%∋ . .− ∆.Γ −! −∋ +!−.)Φ7 6 .−. )Φ7 :−Κ

∗ΛΥ

)

( 6:−.4)Φ7%∀− ε9φ

,ϑϑ∋<Ε.!6/−9∀,ϑϑ∀∀&&&∀−,ϑϑ∀Γ&0&&7∗∋<−

∆&7&)& Γ −

9&−

#,

9∀(∆≅ΛΚ& ∀−

9∀&7Λ&&

Page 154: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .

)&&∋<128Χ3

∗2&

∆&7)4&

2&&

ϑ∀ : − )8∆%∋ .+/−:∆ 6−+ −∋ − )Φ7 !−! )Φ7 −Κ

∗Λ∋0

)

( 6− 4)Φ7%∀− .−ε9φ

)9∋<Ε ./6+ Ε7 ∆77−)9&ΕΕ.Γ6: 7− )9 Ε ∀7 Φ7 Φ& &Φ− )9 Ε Φ Γ % 0 &ΓΓ∀Γ∆8

#,

9∀(∆≅Λ+Κ& ∀ −

∀ΓΦ

9∀&7Λ&&

Page 155: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .

−+00 −+ΤΑΣ−

−00 −;>−

−+00−+8.−

−00−∆=ΙΑ−

.+−+.−..−...−9&7297

− − −+−6−

#)4∗

Page 156: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .6

0−

∗2&

∆&&&&7ΕΕ&−∆∋0%&ΓΖ&&[−

2&&

ϑ∀ 6+−+ )8∆%∋ −.∆ 6−/ −∋ +−)Φ7 ..−/ )Φ7 .!Κ0+.−.− :13

∗ΛΓ∀

)

( −64 −+,− −

∀ &7 Ε & &./+ & & Ε −οΕ&&Γ7&Γ & &7−8&−

9 )7 ∆# &8&Ε8&&8

#,

9∀(∆≅!Κ

∋ − ∆ & Γ8 Γ &&Γ && &∀ ∀7−&7&&−∀&∀−

Page 157: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .:

09&7297

∗2&

∃&&&2−∗&79&7&&Ε2∀−

2&&

ϑ∀ +− )8∆%∋ 6−!∆ .!−/ −∋ :−6)Φ7 −. )Φ7 .Κ0+.−.− :

∗Λ

)

( ..−4 .−.,− .−.

∋&&&2−9&7∀)4∗++7. 7−

9&7 Ε Ι & & &2Ε+Κ−

#,

9∀(∆≅:/Κ

∋ − ∆ & &7 Γ && &∀ ∀7−&7&&&&−∀&∀−

Page 158: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .!

Χ∋<128Χ3

∗2&

%∀7&&7&

2&&

ϑ∀ .!−. )8∆%∋ 6−∆ .+−/ −∋ +−6)Φ7 .6:−: )Φ7 −Κ

∗ΛΥϑ&∀&Γ−

)

(66− 4)Φ7%∀− ε9φ ∀

8 !Γ %∀Φ7 ∋& &Φ Γ)∀Ε−

Γ &Γ ΙΕ7 −∆7&&ΓΕ&Ε&ΝΓ Ε & − Φ 1+ −3Γ & & ∆ 1 ρ.Γ −3∋ + Τ ! &7 ϑ8%<)8∆%∋ Γ )8∆%∋&]∆%Λ!6&∀−

#,

9∀(∆≅Λ.6Κ −Ε&∀Γ&&&∀7∀&−

Page 159: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ ./

%,0∋)∗

∗2&

∃Λ)7Ε∀Ε7Γ,%Ε&Γ&∀∀−8&&&ΕΕΓ&&&∆&7∀7&7Ε0Γ770&

2&&

∃&Ε ∀!

13 .+ − )8∆%∋ /−∆∋ .:/−: )Φ7∗ /Κ∋ /+−)Φ7 .6−6

∗Λ:1#)Φ∀ΛΥ3∀&&&&&&−ϑ(∀+− ∀−−/&∀Τ !

)

( ++−64 − ,− 6−/

∋)Ε&&&1−−&ΓΕΓ&ΓΓ3&&&Γ07Γ&∀Γ0&ΝΝ<&&∆&&)1ΧΓϑΕ7Γ,73

89& !Γ∋)Φ7Η&Φ,∋∋∋ΓΕ. Κ

#,

(∆∃)8∆%∋13Λ .:−)≅∃173Λ !−6)≅Λ . −ϑ%Λ −6() ∗

27∀,∃∀&&,&∗∀&7Λ&&

Page 160: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .6

7 7,∋8<∀Ι60!128Χ3

∗2&

∋ΕΕ%&7&&∀&Γ&ΕΕ−∋&&&∀&7∀ΙΓ&Ε&ΕΕ&∀7&Φ7−

2&&

#==1=8− =3∃=/

ϑ∀ < )8∆%∋ 0 −+∆ /−. −∋ !−+)Φ7 +−/ )Φ7 +!−/Κ6788;%!

ϑ∀ .−/ )8∆%∋ .−/∆ !−+ −∋ −.)Φ7 .−6 )Φ7 6− Κ578≅2

ϑ∀ .−: )8∆%∋ .−:∆ :− −∋ <)Φ7 − )Φ7 /−+Κ

∗Λ

)

( /−4)Φ7%∀− 6−ε9φ

77,∋−∆∀∀7Γ∀−∆28Χ&7<Χ∀+:17 ∋ Χ , %3−&7)4∗9− 7 8< ∀Ι 60!− ∆ 7 & Ε7 − &7)4∗9+:−:−

#,

9∀(∆≅Λ/ Κ Γ78<∀Ι60!ΛΕ)4∗.+−−9∀&7Λ

Page 161: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .6.

Χ(#8∀(1#23

∗2&

Ξ Ε ∀ 0∀ & Ε ∀&&7 7 &∀ &Ο7&−!ΚΦ7&∀&ΕΕ7−Ξ∀&Ε∃Χ∀ & Ε 7 & Ε& &Ε& /−

2&&

ϑ<∋

∗Λ0∀Γ∆ϑΞ1Φ7∀3χ! 1+3∆&&4∗

)

( 6+−64 .−:)Φ7 %∀−

Χ &∀ 4 7 7 77Ε(Ε& ∀ − ∆ &7 Ε7 & Ε 7 Χ 27 ∆− Ξ ∀ &7 Τ7 /Γ 7 &7Ε&;;,;;Γ & 7 & & 1 & χ.Γ 1.Γ::+3 Ε& /3 &(&−

)&−&&7−

#,

Ξ Φ7∀χ:1++:3− ∋7−Κ∀Ε & χ.61 3

Χ−&&∀(&−80&Ε2Χ−Ι&∀∀&7Λ0

Page 162: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .6

1#23

∗2&

∆&&ΕΦ7∀&Ε&Ε∀7−∆ΓΕΕ&Γ&&&&−∆( Ε∀&7 7&Γχ16−3 χ!1/−!3Εχ1/−3Ε−Χ∀&&&−

2&&

ϑ<∋

∗Λ%∆ & ∗&∀ ∀ χ. 1.−+3 χ. Εϕ+ !−

)

( −4 .− )Φ7%∀−

∆&7&∀∃!−Ξ∀&∆(∃&71Χ3−

#,

≅+ −: ∀−Ι&∀∀&7Λ0

Page 163: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .6+

7(1#23

∗2&

∆ 7& & 7&7&1!3−87∀∀&&&−

2&&

ϑ<∋ ∗Λ

)

( 6+−:4)Φ7%∀−

∆Ε≅&7&∗77−

#,

]&∀. 9∀(∆≅Κ

∀7&&ΕΓΕ!!−Ι&∀∀&7Λ

Page 164: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .6

;>

∀∀!

.−+00.−+ΑΣ≅Χ−

−+ −.−:+−;>

..−:00..−:280−

./− −. −!.!−2Θ>−

6− 006− ∋:−

#)4∗

Page 165: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .6

0∋:−

∗2&

∆&7 −∆&7 Ε7Ε& &7&7−

2&&

ϑ∀ .− )8∆%∋ .−∆ −/ −∋ − )Φ7 −! )Φ7 +−+Κ0+.−.− :

∗Λ7&−

)

( 6− ∀

∋ : Ε :− ∆ &7 &7 7 13−∆&7Η7 +Γ Γ −

∆&77 :−

#,

(∆≅!Κ

∆1+Γ Γ 3:1−:)4∗3&&7&&Ε&(∆≅&!Κ−

Page 166: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .66

02Θ>−

∗2&

∆&Ε&&∀∀7−∆&2Η−2&8&&Ε− 8Γ &&&Ε& ΗΗ−∆ΓΕ 7 & 2∀ &7−(8&&&Γ8&&72−

2&&

ϑ∀ ++− )8∆%∋ −/∆ ++−! −∋ .−/)Φ7 /−6 )Φ7 !−Κ0+.−.− :0

∗Λ∆&∀+.−!− !&&−

)

( .!−4 −!,− −.

2Θ> 123 & 8&. ∆ &7 Ε &Γ ∗7Ι∀= ∋7 Ε& 2Η7 −2Γ2 Ν& −&: Κ&7−

∆&&&Φ&−

#,

(∆≅! 0/ Κ

∆&&7Γ−−ΓΓ&7ΓΕ&−∆&7∗7Ι∀=−∆∀−

Page 167: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .6:

02−

∗2&

∆&7 Ι&&&8&−2Γ8&&7&7Η&&−

2&&

ϑ∀ +!−: )8∆%∋ . −∆ ..6− −∋ .6−:)Φ7 :+−+ )Φ7 6+Κ0+.− !− :

∗Λ0∆&∀+.− !− :&&−

)

( ..−:

2&8&−2Ε Ν Ε ΕΕ &− ∆ &7 + ΕΟ ,Ι_>Γ >ΑΘ_−∆7+ −28+0&ΟΧΘΓΧΘ2ΠΕ&Γ&∀7

2 7 ; 13− ∆ &72>ΙΕ&Ε∀&7Ε7−2Ι2 6−

#,

(∆≅ Κ

∆7∃Α70.−∃Α7ΕΝΕΕΦ−∆∀∀Φ+ +)4∗

Page 168: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .6!

0;>

∗2&

∀&7−8&Γ&7∀13−∆7&&−

2&&

ϑ∀ ..−/ )8∆%∋ .−∆ .6− −∋ /−:)Φ7 . .−. )Φ7 6−!Κ0+.−.− :&0

∗Λ0∆&∀+.− !− :&&−

)

( +−4 .−:,− −

;>13&∀Ε&7Γ−−& milk and cheese production.Ε.!!/7 Γ7Ε)−Ε7 7Γ &7&&Ε∀−2 Γ 8& Ε 28 7 8&−2Γ &7 Γ && Γ Γ&&Γ&Ε−

#,

(∆≅6 Κ

∆&Φ>ΑΘ&7−

Page 169: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .6/

2∋<128Χ3

∗2&

%&7)8∆%∋Γ&7&& !−∆ΦΕ∀Γ&&∀&&))−8&1&&3∗ΓΕ&ϑ&−

2&&

ϑ∀ .6−+ )8∆%∋ + −∆ /−! −∋ 6!−)Φ7 −/ )Φ7 .:−+Κ

∗Λ

ϑ&∀&Γ−

)

( !−+4 −+)Φ7%∀− ε9φ

2 Χ ∋< 7 &∀ & 7&1∀ΓΓ+0&Φ73−∆ϑ&& Κ∀Γ&7Ε ) ) ∗− ∆ &7Μ Ι∋)Φ7−∆(9&&−28Χ+:Κ−

∋ Τ !ϑ8%<)8∆%∋ − ]∆% )8∆%∋ & !. 1∀− !3−

#,

9∀(∆≅Λ6!Κ& ϑ8% −

Ε&∀Γ&&&∀7∀&−

Page 170: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .:

∃≅Α

∀∀∀

+−.0 −.+−.∀>Ι−

+−:00+−:2;>ΡΣ−

− −. −.−∃≅Α−

#)4∗

Page 171: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .:.

∃≅Α0∃≅Α−

∗2&

∆ ∃≅Α & −& &7ΕΕΓ&&Γ &7 &Γ &Γ Ε &7−ΧΕ∀,∀Ι&Ι&∀&7Η&Τ7Ε∀&&&−∆&7Η&Ε−

2&&

ϑ∀ !/− )8∆%∋ /−.∆ 6 − −∋ 6−6)Φ7 !−6 )Φ7 .−+Κ0+.−.− :

∗Λ0∀Λ 2∀.Γ

8<)8∆%∋Γ)Φ7 Κ

)

( −4 −.,− −.

∃≅Α &&&&&&&−9∀Ε7&&−∆&&&∀7ΕΓΕ−∃≅Α&8&−

∃≅Α Ε7 Γ &7 (− ∆& Ε ≅= δ 1 & 2;>ΡΣ−3−

#,

(∆≅/ Κ

2;> ΡΣ ∃ ≅Α &− ∃ & Ε − ∋∀ ∀ &∀.+ .)4∗−&∃≅ΑΗ−9∀&&&−

Page 172: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .:

∃≅Α02;>ΡΣ−

∗2&

∆&&∀&Γ&&−

2&&

ϑ∀ +−+ )8∆%∋ −6∆ !−+ −∋ .−.)Φ7 − )Φ7 ..−Κ0+.−.− :

∗Λ0∆&7ΓΦ

)

( +−:

2;>ΡΣ−&7Ε&Ε∃≅Α 7 &7 ∃ ≅Α −∆2Ρ∃≅ΑΕ∀&7−27&7&∗7Ι∀=−2Ε:0/)4∗Ε−

#,

(∆≅/ Κ

2;> ΡΣ ∃ ≅Α &− ∃ & Ε − ) ∀ 6: )4∗− ∋∀ ∀ &∀ .+0.)4∗−9∀&&&−

Page 173: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .:+

,Χ&1#23

∗2&

∆Φ72&&&77∀7−

2&&

ϑ<∋

∗Λ

)

( +−!4 !−.)Φ7%∀−

Ξ&∀<6 2& − ∆Ν Η∋ Ε Ε ∃Χ∀−∆Ε∀−

#,

∀..+−9∀(∆≅Κ

∀ ∀ ∃−Χ−Ι&∀∀&7Λ

Page 174: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .:

∋<128Χ3

∗2&

)Χ∀

2&&

ϑ∀ 6Γ .−/ )8∆%∋ .Γ :−∆ !Γ. −! −∋ Γ +−/)Φ7 Γ6:−/ )Φ7 +−6Κ

∗ΛΥ

)

(4)Φ7 /−!%∀− ε9φ !

Ε70Ε−∆Φ9∃5∆ϑ&)&Γ−2Ε.ΚΕ∀Ε7!Κ−∋<&7−Ε∋<Ε&∀−2&∋<&&7−

#,

9∀(∆≅ΛΚ& ∀ −

∀Ε∋<1. 3&2&∋<&∀

9∀&7Λ&&

Page 175: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .:

Ξ∀ϑ−≅−128Χ3

∗2&

ΕΕ&&&∀&)Η−8&Ε&

2&&

ϑ∀ .Γ6.−: )8∆%∋ .−.∆ .Γ/.− −∋ :+−)Φ7 +6/−! )Φ7 −!Κ

∗Λ0

ϑ&∀&Γ−

)

( :−64 ..−:)Φ7%∀− ε9φ

Ξ∀ϑ−≅−ΓΦαΕΓϑ∀∀Ε&ΕΓ&ΓΕΕ−)ΓΞ∀ΕΕ7≅)−28Χ&7&)4∗: ∃Ε&. Κ−

∋+ Τ !,ϑ8%<)8∆%∋+−−&7!Κ)8∆%∋∀−1&7−3

#,

9∀(∆≅Λ Κ

& ϑ8% −

Ε&∀Γ&&&∀7&−

Page 176: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .:6

Χ,128Χ3

∗2&

∆∀∀7&ΓΕΓ∀7Ε

2&&

ϑ∀ − )8∆%∋ <∆ .!−: −∋ !−!)Φ7 .+!− )Φ7 :− Κ

∗Λ

)

( !−4 −/)Φ7%∀− +− ( −/

Χ,16+73&∀Λ∃Ι701&3ΓΕ,7Γ&∀Γ0Ε&7Ε−,∀&−∀&& :Χ,&∀−

Χ, Κ,)Ι∋<−∆&7ΕΤ−

#,

9∀(∆≅ΛΚ& −

Ε,7−−,)Ι∋<Λ 77Χ,Χ7)Ι∋&&∀)4∗6Γ:&)4∗+Γ9∀&7Λ

Page 177: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .::

(<(ϑ&Χ∋128Χ3

∗2&

8 & & ΕΕ % &7 & ∀ & ∀−∆7−Ξ&&7Ε&7−8&&7−

2&&

ϑ∀ /−: )8∆%∋ +−+∆ +.−! −∋ ..− )Φ7 .:−/ )Φ7 +−Κ

∗ΛΥ

)

( /−4 .−)Φ7%∀− !−+ε9φ !

(<Χ8∀∋<7∀−

(<Χ8∀∋<%&2−∆&7!0. 7∀7−

4 :(&∀&&−∆Ι%.−:Τ.−Τ7 :0−∆Ε∀+7∀7(ϑ&Χ∋Γ∀&Τ&−

#,

9∀(∆≅Λ!/Κ ΓΓ7((ϑ&Χ∋1&73Γ&∀9∀&7Λ&&

Page 178: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .:!

∗2&

∆ &7 7 && ΕΕ & & 8&& − ∆ &7Η & 7 & ∀ Φ7−

2&&

ϑ<∋ ∗Λ9)&∃&Λ. Κ−

)

( :−! !

∆&7&7−

9ΕΛ,σΘΤΘΘ1++−+Κ3Γ,=ΙΑΘ1++−+Κ3ΤΘΙΑ1++−+Κ3

#,

&7Λ/!−6Κ1(∆≅. .−Κ3

7−∆&7Ξ&(−&&Φ&∀−

Page 179: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .:/

%,∋

∗2&

8 & & ΕΕ Ε<% &7Ε & &&−Ε∀&7&−∋& & &7 ∀7&∀ &Γ∀ & & 7 − ∋ %Η & Ε 7&−

2&&

ϑ∀ +− )8∆%∋ .−/∆ 6−6 −∋ −)Φ7 +.− )Φ7 .+−/Κ0!−− !6

∗Λ∋&∀.ΧΗ !&&Λϑ%<)8∆%∋−.Γ2&&∀.−. Γ)8∆%∋<ϑ8+−.−

)

( :−+

8∋ 6Γ%Ε&Φ7∋ 2 88,(Γ %,∋ΓΕ&Ε & 7 7 )4∗ /−. Φ7)4∗6−6−7∋Ε:+Κ&7ΓΕΕ7∀−

%8∆&Ε& 7 ∃ & 13−∗&7%%7&Φ&%∃Ε−%ΕΕ)8∆%∋∀∀&ΕΕ&∀−

#,

9∀(∆≅: Κ Λ 1 &3Γ Γ&∀Γ∀−∀Λ Ε % ∀&Γ ϑ % )8∆%∋Γ )8∆%∋ 2&ϑ7Γ9∀&7Λ,

Page 180: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .!

2Ι,<

∗2&

∆&&Γ&&173−∆∀∀7&∀∀7Ε−

2&&

ϑ∀ .−6 )8∆%∋ /−.∆ ! −! −∋ 6−)Φ7 :−6 )Φ7 /−Κ0+.−.− :

∗Λ∀Λ,&∀&∀Φ7Ε+ Κ−Χ∀7−

)

( 6−:4 −+ ∀

∆ 2Ι , Ε & ΕΖ2[ ΖΧγ[ &7 < 2ΙΓ &7ΝΕΖ≅∀Θ[7<2≅∀ΘΓ0 Ζ[ 7 <2 ∗− ∆ &7 <2∀Ε<22Ι<ϑ−

#,

.− )4∗ : − 2 7 ∀ ≅∀Θ Χ_−

− )4∗6−27∀2−+− ).−−∆7∀−

Page 181: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .!.

Χ&∋<128Χ3

∗2&

∋∀Ε&1&∀&&&3%&&ΕΕ7−1∆∀73−

2&&

ϑ∀ . !−! )8∆%∋ .−∆ //−: −∋ .−)Φ7 −: )Φ7 −:Κ

∗Λ7Γ&7&&&&∀∀−9Ε&7&∀∀−

)

( 6−+4)Φ7%∀− −ε9φ !

89& 6Γ∋&8820∋2∃8∀∋<0&Φ2∃0γΙΠ,1ΕΧ&∋<30:ΚΕ−∆Ε−

∆&7Ε−∆&&7&−

∆&&7∀Ε..:)8∆%∋∀−

∋Τ !1ϑ8%<)8∆%∋3Ε−6 1−− 3&∀Ε6−1−+−3

#,

9∀(∆≅Λ/Κ& ϑ8% −

−Ε&∀Γ&&&∀7∀&−

Page 182: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .!

2&8∋128Χ3

∗2&

∆&7ΜΝΕΓΕ&Ε.//+−∆&Ε&&∀&−8Ε7&Φ&−

2&&

1 !2&8∋3

ϑ∀ .6−: )8∆%∋ .−.∆ ...−! −∋ ..−)Φ7 +6−. )Φ7 ++Κ

∗Λ

ϑ&∀&Γ−

)

( −:4)Φ7%∀− .−!ε9φ

8 %& :Γ % ∀ Φ7 &Φ 2_ 1&72& 8∋3−2_ Ε∀&&7Ε&&Γ7Ε&−8&∀Ε∀Λ∋&∀&#−∆&7+Γ 7−8Τ7&7&Φ7Ε−

+ Τ !&&−

#,

9∀(∆≅Λ+Κ& ϑ8% −

2_∋− Ε&∀Γ&&&∀7∀&−

Page 183: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .!+

%(, %(,∀∀∋∃∋128Χ3

∗2&

8% 7Ε∀ & Ε 7−∆&7&<−4ΕΕ∀&7Ε&&∀−2&∀&Ε&&Ε−

2&&

ϑ∀ +Γ+ +− )8∆%∋ :−∆ .Γ66−/ −∋ .Γ +−)Φ7 + −: )Φ7 .!−Κ

∗ΛΥ

)

( −64)Φ7%∀− ε9φ

%(,&%&7∀ Κ−

%(,&∀Ε7−/Γ −

9&−

#,

9∀(∆≅Λ Κ& −

∀9∀&7Λ&&

Page 184: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .!

Ξ∆Χ∋<128Χ3

∗2&

8ΕΕ&9∀&&∀7

2&&

1 :< !&Φ3

ϑ∀ .6/− )8∆%∋ −6∆ .−/ −∋ 6−/)Φ7 !!− )Φ7 +/−:Κ1&−−&−)4∗. −3

∗ΛΥ

Ξ&&7ϕ+ !&&∀−

)

( 6−4 −.)Φ7%∀− − ε9φ

8 !∀Φ7ΕΧ#&Ξ∆Χ∋<−∆&7Ε∆γΙΓ%ΜΕ&ΓΞ<∆1Χ#3%Ε&−∆∆γΙΕ&&../&%−Χ#&Ε0Ε&∀&7ΜΕ−∆,&ΕΛΞ%∆−8ΓΞ<∆&. ϑ&Γ& %−1.Κ3Ε&ΕΓΕ&&7Γ∀&&77−∆&&&7−7ϕ !ϑ8%<)8∆%∋Λ−−)8∆%∋&: −

#,

9∀(∆≅ΛΚ& ϑ8% −

− Ε &∀Γ & & &∀ 7 ∀&−

Page 185: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .!

&9]128Χ3

∗2&

&7<&)&∀7Ε0∆Γ&7&−

2&&

ϑ∀ /.−: )8∆%∋ .+− ∆ .Γ6−+ −∋ +::−!)Φ7 +6.−6 )Φ7 +.−!Κ

∗ΛΥ

ϑ&∀&Γ−

)

( +−:4 .−)Φ7%∀−&( . −

&Γ&&&Ε&−8∃& Ε∀Φ7Γ)ϕ∆Γ&Φ&97−Χ07 :Ε∀)4∗:6−+)8∆%∋)4∗6+−:−∆(9 && 28Χ . Κ &−∋+ Τ !ϑ8%)8∆%∋−+−

&700!Κ)8∆%∋∀−

#,

9∀(∆≅ΛΚ& ϑ8% −

Ε&∀Γ&&&∀7∀&−

Page 186: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .!6

Τ∃%∋<128Χ3

∗2&

%7Ε∀ΕΕ%−8& Ε0&& − ∆ &77&Ε&&−

2&&

ϑ∀ −! )8∆%∋ 0 −:∆ . 6−6 −∋ . 6−)Φ7 :−! )Φ7 6−.Κ

∗Λ0

)

( +−64)Φ7%∀− ε9φ

∆&7Τ∃∋Ε./%&)&&./!−∆Ι&∀ΓΓ&&−∆∀Ι&&&Ε−Τ∃%∋<&&Ι&∀ΓΙ&Ε0&&−

#,

9∀(∆≅Λ/Κ&

,Τ∃∋)4∗ ΓΓΤ∃∋Γ&Ε∀ΧΓ%28Χ

9∀&7Λ&&

Page 187: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .!:

)Χ02128Χ3

∗2&

∗)Χ

2&&

ϑ∀ .− )8∆%∋ −!∆ //−/ −∋ +−+)Φ7 + +− )Φ7 −6Κ17∀)Χ3

∗ΛΥ

)

( +−64)Φ7%∀− ε9φ

)Χ02ΚΕ&)Χ∋<−)Χ∋<− 7ΧΧΓΧΓ8−

)Χ02Μ&Ε28Χ7&71)4∗ 3

#,

9∀(∆≅Λ/Κ&

9∀&7Λ&&

Page 188: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .!!

>−

∗2&

∆ 7 & 8&& − 8 7 Ε ∀&0∀&∀&7&∗7Ι∀−∆Φ&−8&ΦΓ(∆≅Φ&&−

2&&

ϑ∋

!7

∗Λϑ<∋ &Ν

)

( +−

∆&7≅Ε&Φ ∃Π8&&&1Β∋≅3−∆ Φ . ΓΕ.Γ! ∀ :0. 7− ∆ & & Ε )4∗ 6 Ε! ΚΓ.−∆&Ε7≅Γ&7−∆∀Γ77−∆&7 7ΧΓΕ&&7Ε)7&&Γ,>Γ&7 7Χ∀77−

#,

≅)4∗6 6:9∀(∆≅! 0/ Κ

(&∗7Ι∀=Γ. Γ&&Ε .:/+ Γ −− /6 7 Γ .& Γ 6 Ε .Γ..+ &− ∆ &Γ & &∀0&&&Ν0

Page 189: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .!/

2()−12()3

∗2&

∆&&1&&Γ&Γ∀83&Ε & −( &−∆2()7&&−∋&78&∀&7&&&&−9&Ε&2()&&Ε&−

2&&

ϑ∀ : −: )8∆%∋ /− ∆ − −∋ .:−/)Φ7 :− )Φ7 +Κ0+.−.− :

∗Λ!

)

( −6%∀− − !

2() 8&& 8 ∋ ∆ ∀Γ 8&− 2_− 1∆ %7 2 3 7− ϑ : Ε − Τ0∋ ! .−Γ Ε& ∀7−) .+−17∋∋&Γ43−∋ 7 2ΙΕ 2()− ∆ Ε ∀ 2() & ∀7 & ∀−

#,

ϑ∀∀∋∆

Page 190: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ ./

(∋<128Χ3

∗2&

∃7 &∀7 % &∀7 &7 & Κ&−∆&77ΙΕ−∋ΕΕ%&7Ε&&7Μ&Ε∀7&77ΕΕΕ7−

2&&

ϑ∀ .6/− )8∆%∋ !−6∆ .−6 −∋ :−)Φ7 − )Φ7 −+Κ

∗Λ0

)

( 6− 4)Φ7%∀− 6−!ε9φ !

∆ &∀7 & Ε Φ− ∗ Φ−∆&&−∆Ε7%−( ∋< & )&− ∆ &&Γ&!.Κ70Ε7 Τ ( 1: Κ3 ∋ (1+ Κ3−

9 & &7Μ & ΧΓΕ&Ε&Χ−

#,

9∀(∆≅Λ6Κ&

Γ &∀Γ 7 7 ( ∋< &Ε9∀&7Λ&&

Page 191: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ ./.

%(,&(1#23

∗2&

∆∀&∀7&& !−∆7 ∀Ε7 ∀∀ ∀&0∀∀Ε72&87&&&−2&Ι&7Φ−

2&&

ϑ∀ .−)8∆%∋0 − +∆ −−∋ +−/)Φ7 +−:)Φ7<∆∋:−+Κ

∗Λ∆&&∗&∀−

)

( .− 4 )Φ7 %∀− .−

∆ Ε & 8∀&&77%(,ΕΕ4Η∀7&&&− ∆ & && & & & ∀7 &7 − ϑΕ−2ΕΕ1Ε∀∀&3&∀−

#,

ϑ Ι&∀∀&7Λ

Page 192: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ ./

8∋128Χ3

∗2&

ΕΕ&&&∀ !−8&Ε&

2&&

ϑ∀ .+.−! )8∆%∋ .−∆ .:−+ −∋ +!−/)Φ7 − )Φ7 +.−!Κ

∗ΛΥϑ&&&7Ε&ϑ8%<)8∆%∋+ !

)

( −+4)Φ7%∀− ε9φ

8∋&7Ε7(%)Φ7−8 :Γ (% Φ7 < &Φ ( ∋<1&Γ−− 7Ε3Γ∋<1&7Φ3Γ ∆Π ∋< 1& Ε 3 ΧγΧ#∋< 1Ε &3 &78∆Χ88∀∋<78∋−

∋+ Τ !,∀1ϑ8%<)8∆%∋3−..1−− 3−&]∆%! Κ)8∆%∋∀−

#,

9∀(∆≅Λ!Κ& ϑ8% −

−Ε&∀Γ&&&∀7∀&−

Page 193: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ ./+

Χ∋<128Χ3

∗2&

∆&Ε28Χ7

0++Γ6&2&%0&&&&−≅7&−

0.:Γ:&&&Ζ%,87[Χ−∆Ι7Ι&∀&Ι&&−

2&&

ϑ∀ +.−: )8∆%∋ 06−∆ ..−! −∋ .+6−!)Φ7 +.− )Φ7 −:Κ !Λ)∆)0

∗Λ0(Ε∀9Ε0Ε&&Ι&−

)

( .−4)Φ7%∀− −ε9φ

∆,Ε./:/7ΓΕ7&−∆&7&∀∀&&7<∀−∆&&&∀&&Ε7&&−∆Ε&&−∆,7&∋ΓθΓ≅ΙΓ9ΓΓΧ1Ε3ΦΧ−∆− 7−

∆%Μ&&&&&77&∗Μ∆∀∗ΓΧΓ2Χ&−

#,

9∀(∆≅Λ+Κ

[%,8 7[ & (∆≅−

Γ &∀Γ Γ 7 &−2&%,87≅−∆Ε7−

9∀&7Λ

Page 194: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ ./

Β∀

∀∀∀∀!

−/00 −/(−

.− −0 −∋−

−.00−.Β∀−

−.0 −+−!.:− ∋Σ−

+−!0 −0+−∃Π−

#)4∗

Page 195: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ ./

Β∀0∃Π−

∗2&

8(∆≅ΗΓ&7&7−

&&∀&&77−

2&&

ϑ∀ +− )8∆%∋ −+∆ −! −∋ :−:)Φ7 !−! )Φ7 .Κ0+.−.− :

∗ΛΥ

)

( +−%∀− − !

∃Π−&7Ε7ΙΑΓ7)9∋−

7Ε6&&Γ7 Γ Φ−%∀∆&713ΓΕ7.Κ∀ . Κ−

#,

(∆≅:/Κ∋∃ΠΓ6Κ#.−)4∗&−

9∀&7

Page 196: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ ./6

#,

(∆≅! Κ ∋ && − ∋∀ / Κ &− ) : Κ &− &7&&−∋∀.−:)4∗− ∀ ∀ & Ι&−

Β∀0∋Σ−

∗2&

∋Σ 7 Ε 7 & & Ε− ∆ &Η Ε Ι& &Γ Ε∀7−Ε&−

2&&

ϑ∀ − )8∆%∋ −!∆ − −∋ −)Φ7 −/ )Φ7 Κ0+.−.− :

∗Λ

)

( .:− 4 −!%∀− −+

∋Σ−17∀=∀−3∀0&Β∀,− &Ν∀−∋−&−

Page 197: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ ./:

%∋∀∆7∋<128Χ3

∗2&

(&∆&&Ε

2&&

ϑ∀ +.− )8∆%∋ 6−:∆ : −+ −∋ +.−)Φ7 ./− )Φ7 :−6Κ

∗Λ0

)

( +−!4 !− )Φ7%∀− !−:ε9φ

∆&7Ε%Ε77Ε−∆%∋∀∆7∋<7ΓΝ&Γ7Ε−

∆ 7 Ε 7 ∀ ∆∀Π 1/ 7 3ΓΕ &7&−

#,

9∀(∆≅Λ Κ&

9∀&7Λ

Page 198: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ ./!

)∗Χ∋<128Χ3

∗2&

2&&

ϑ∀ .!−: )8∆%∋ .+−/∆ /+− −∋ :−!)Φ7 . − )Φ7 !− Κ

∗ΛΥ

)

( +!−4)Φ7%∀− . −!ε9φ

) ∗ Χ ∋< Ε 7 0∀ 8Γ)∗ 7∃&7∗−

∆&7Ε7Ε

#,

9∀(∆≅Λ Κ(∆≅ && %(−

∀9∀&7Λ

Page 199: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .//

γ∀∀∋<128Χ3

∗2&

2&&

ϑ∀ +/− )8∆%∋ +/−∆ .Γ 66− −∋ /−)Φ7 −! )Φ7 !−!Κ

∗Λ

)

( !−:4)Φ7%∀− ε9φ !

∆&7∋&∀∃&ΓϑΕ&−8&&Ε∀&7Ε&%&∀−∋ ∃&Φ&Φ+Κ−∆%+/−Κ−∆&7∀(∀γ∀∋<128Χ7∀&Ε(∀γ∀∋<3−∋ !Γγ∀(∀∋<Ε∀(∀γ∀∋<&&−

#,

9∀(∆≅Λ/Κ& ∀ −

&∀9∀&7Λ&&

Page 200: Kaupthing Bank Before Crash 2008

∃%& ∋()∗

%)7∋<128Χ3

∗2&

2&&

ϑ∀ Γ!−! )8∆%∋ .Γ+ −/∆ .Γ +.−/ −∋ +Γ!..−!)Φ7 Γ+:/−6 )Φ7 −Κ

∗Λ∋0

)

( .−4)Φ7 ..−%∀− ( .−: !

%)77&7%Εϑ)Μ7&−

∆%:+Κ7&7

#,

9∀(∆≅Λ/Κ& ∀ −

()4∗.Γ:&&7∀)4∗:Γ/

9∀&7Λ&

Page 201: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ .

∋%

∗2&

∆4∋%&∀ ∀ 4 ΕΕ 7 &− Κ Ε − ∆ Ε&&&&7∆∀&&ϑΧ7&Ε∀−∋%Ε−8&− Ε&&.Γ&∀∀∀&&&&Ε&&Ξ&&∀∀&Γ∋%Ε0&&Ε

2&&

13 −+ )8∆%∋ +−:∆∋ .+− )Φ7∗ +!Κ∋ − )Φ7 −0Τ7 !

∗Λ:1#Φ∀ΛΥ3∀ΛΕ∀∋ !&0&Ε&&)8∆%∋−

)

( :−4 −

#,

(∆∃)8∆%∋13Λ .−!)≅∃17β2 :3Λ /−)≅Λ ..!−.ϑ%Λ !− () ∗

&7&∀∋%Χ(7&7&&&

∋%4&ΕΕ&−. &&&4∆Η&&∀77ϑΧ∀&1ϑΧ3&&∀∀Γ∀∀7&8 6ϑΧ∀&∀&∀&&&&&∆∀∋%Ε&Ε

8∃& :ΓΕ. ΚΝΝ&∆&Ε7&ΕΕΤ7 !Γ&7+!−6

Page 202: Kaupthing Bank Before Crash 2008

∃%& ∋()∗

)∋≅−1(3

∗2&

04∀Ε&−0&Ε&−07∀∀ΓΕ∀&&%Ν−

2&&

&∀≅∀−

∆∀7&∀7∀&&&7∀−

)

( :−2%#∆∗ −.4 1+− 3)Φ7 0 0%∀−0

Ψ 8∀! 8&& 7Ε≅,Γ Μ−

Ψ 2&Ε∀Ε)∋≅& :07 !−

Ψ ∋ & Ε ∀ ≅ & & 1&& Ε(453Ε !

Ψ ∋&Ε2&7&7&2−

#,

∋!−!:97Ι−.6)<2−69.−6 (∆≅ς.!Κ

0∗Λ−0∆ & 9Μ ∀ & ∀ &− 2 & 2∀7Ε&1∀)4∗./−3−

ς(∆≅&&ΖΝ[7

Page 203: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ +

22−

∗2&

∆&7ΕΙ&−27 6ΕΕ&72&&7 :Ε&&2−

2&&

ϑ∀ +−! )8∆%∋ 0 −∆ /− −∋ −6)Φ7 /−. )Φ7 .Κ0+.− :− !

∗Λ0∆&7&∀ :−−ϑ&∀%&∀−

)

( −+)Φ7 −+%∀− −.,− .−6

22Ε Γ Ε ∃9 ∀ ∀, −Γ ∀ −Γ Τ +− ∆ & & &∀ΓΓ−

∆ 0 −− & Ε & ∀&1.3∃9 +13&Φ7 1&−!Γ)4∗31+3&Φ:Κ2Ι 61&−−)4∗3−8 .− )4∗ 7− ∆ 7−∆Ε137Ε&−)4∗ 13 7 + )4∗ 1&3 Ε ∀∀&&7)Ε−)4∗−

#,

(∆≅Λ. Κ∆2&Γ8&Γ2Ε− 2Γ Ε& &7 Ε− ∋Γ ∀ &−.)4∗−

Page 204: Kaupthing Bank Before Crash 2008

∃%& ∋()∗

∋<128Χ3

∗2&

8&Ε&ΕΕ&&&∀7

2&&

ϑ∀ +6 −+ )8∆%∋ −:∆ +!− −∋ .+−)Φ7 /!− )Φ7 :−+Κ

∗ΛΥ

)

( :−+4)Φ7%∀− ε9φ

&Ι&&&−∆∀Φ78Ε<+8∋<ΓΕ∀&7∗Ε.<+−

7ϕ !ϑ8%<)8∆%∋Λ+−+1∀+−3−π&&7ϕ+ !−

)8∆%∋&Λ]∆%&:−

#,

9∀(∆≅Λ:Κ& ϑ8% −

Γ∋<−

Ε&∀Γ&&&∀7∀&

Page 205: Kaupthing Bank Before Crash 2008

∃%& ∋()∗

8∀Χ∋<128Χ3

∗2&

∆&&8∀Χ∋<−∆7% )4∗96 −∆7∀7&&ΕΕΕ−∋∀<Ε∀&−Ξ7&8∀Χ∋<Ε77−

2&&

ϑ∀ < )8∆%∋ <∆ .!.− −∋ /−!)Φ7 .!.− )Φ7 //−!Κ

∗ΛΥ

)

( 6−/4)Φ7%∀− −ε9φ

8∀∀7∀%−&./!!Γ8∀&&&∀∀&&&Ε7Ι&%)&−

∆&7Ε7Ε7Χ∆7−

8&78∀)Ι∋<Ε&8γΙ<,∀−∆Ε8∀Χ∋<−∆&8∀&4&&−

∆∀ΕΕ&∀78∀&&−

#,

9∀(∆≅Λ:+Κ Γ&∀Γ778∀Χ∋<&Ε

9∀&7Λ

Page 206: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ 6

ϑ&∆∀Χ∋128Χ3

∗2&

%&∀(&&

2&&

ϑ∀ /.− )8∆%∋ .+−/∆ .+− −∋ +−)Φ7 −: )Φ7 .!−Κ

∗Λ

&∀&7&∀&77&Ε−

)

( 6−.4)Φ7%∀−ε9φ

ϑ&∆∀Χ∋ΓΕ≅8∋∆∀,Γ&∀&7ϑ&−∆&7Ε&∀∀7−≅8∋∆∀,Ε0&Φ7ϑΕ∀)Φ72ϑ −28Χ∀2ϑ−∆(9&&28Χ&7&7−∋ + Τ ! ϑ8% )8∆%∋ +− − )8∆%∋&]00: &−

#,

9∀(∆≅Λ+:Κ ≅8∋∆∀,∋ Ε &∀Γ & &&∀7∀&

Page 207: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ :

∋9−∃ΘΣ−

∗2&

∆&&&&∀7.Χ)8∆%∋ !. ΚΕ7&−∆8≅&&Ε&&7∀&&7 !−

2&&

ϑ∀ 6−6 )8∆%∋ :−!∆ :/−. −∋ 6−+)Φ7 .6−+ )Φ7 .Κ0+.−.− :

∋9∗Λ∃ΘΣ∗Λ∋9∀Ο)Φ7 ΚΓ2&&∀.ΓΓ8−<)8∆%∋η6Γ−∋&∀&&+.−.− :

)

( −/

∋9 &7 ∃ΘΣ 1 3Γ Τ ∗_Γ −,>ΙΘ#Χ−∆ &77&& Ε71&&3−8&&&&−

87 :Γ∗ΠΙ∀ΒΕΕΤ∗_−

#,

∃ΘΣ(∆≅!!Κ

∋9(∆≅6Κ

9∀:+Κ

∃ΘΣΟ.&&Γ.:Γ!Φ−∋9ΟΤ∗_Γ−,>ΙΘ#ΧΕ∀7&&&∀∀&−9∀&7&&−

Page 208: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ !

2&&(1#23

∗2&

∆ 7& & && ∀7 / ∀ &&−∆7&−

2&&

ϑ<∋

∗Λ0(∆≅∀: Κ

)

( /−:4 .6−.)Φ7%∀−

!

∆7&&&7−Ξ&Ε∀& 7&− ∆ & Ε∃− ∋Ε∀&&∀ΓΕ.−−

#,

≅7&./−!(∆≅: Κ

∀ 7& ∀ 7& &&− 2 (∆≅ : Κ− , &Ε∃&−Ι&∀∀&7Λ

Page 209: Kaupthing Bank Before Crash 2008

∃%& ∋()∗ /

∋Ε7,1#23

∗2&

27∀Ε&∀& & & Ε & Ε & &Ι& Ε ∗Γ 1& !3 Ε& & ∀Γ −∆−

2&&

ϑ<∋

∗Λ0Ξ&(

)

( −+4 −:)Φ7%∀−

∆ ∋Ε 7 , & & & &Ε7∀ Γ &− Ξ & Ε ∀ 7≅−

#,

Τ !ΛΓ Ε Γχ+!16−!3 χ:−+ 1/− 3 , ∀ ∋Ε,χ..1.+−39∀(∆≅!.Κ

∀Ε∀−Ι&∀∀&7ΛΕ

Page 210: Kaupthing Bank Before Crash 2008