UK Fraud Office makes arrests in connection with Kaupthing collapse

Wed, 09 Mar 2011

Nine people have been arrested in the UK and Iceland in connection with the collapse of the Kaupthing bank.

Savers lost millions in 2008 when Kaupthing, Singer and Friedlander Isle of Man collapsed as the UK arm went into administration.

The affair caused some damage to the Island's financial reputation.

The arrests were made by the UK's Serious Fraud Office.

Amongst those arrested were one of the bank's directors, who owed the company almost two billion Euros.

There've been allegations of market manipulation in the run up to the banking crisis.