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Top Icelandic banker jailed for role in 2008 financial collapse

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Top Icelandic banker jailed for role in 2008 financial collapse

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The former head of the Icelandic bank Landsbanki has been sentenced to a 12-month jail term.

Sigurjon Arnason was on trial for his role in the collapse of the financial sector in 2008.

Two other of the banks executives received nine month sentences.

The Landsbanki three were accused of manipulating the bank’s share price by lending cash to investors on condition they purchase stocks.

The global financial crisis in 2008 froze credit markets and Iceland’s banks quickly collapsed, plunging the island’s economy into recession.