Singer chief 'warned against Iceland deal'


Updated:


The former chief executive of Singer & Friedlander, which was sold to failed Icelandic bank Kaupthing in 2005, warned the Financial Services Authority not to allow the bank to go ahead with the takeover, a leaked memo says.

The memo, obtained by Channel 4 News, says Tony Shearer, who headed the negotiations with Kaupthing, will detail his warning to the FSA when he appears before the Commons Treasury Select Committee today.

The merged bank, Kaupthing Singer & Friedlander, collapsed last autumn, resulting in the freezing of the assets of many British savers.


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Anger: Protestors demonstrated  at the Icelandic government's handling of the financial crisis  last autumn in Reykjavik


Shearer says: 'The FSA rushed through the approval of the change of control, and the offer went unconditional.

'My short experience of Kaupthing and its management led me to believe that they were not fit and proper people to control a UK bank. This view was shared by most, if not all, of the other members of the Singer & Friedlander board.'

The FSA said it 'always conducts 'change of control' checks and only approves the change if we are satisfied our requirements will be met'.

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