Kaupthing chief faces special prosecutor

The former chairman of Kaupthing was questioned by a special prosecutor yesterday over the collapse of the Icelandic bank in 2008, which helped trigger an economic disaster for the island.

Sigurdur Einarsson faced was questioned at the prosecutor's office about his activities at Kaupthing, which folded under the weight of huge debts.

Iceland issued an international arrest warrant against Einarsson in May on charges of counterfeiting, forgery and fraud.

Asked if he had a clear conscience, Einarsson told reporters: "Yes, I do." He has told Icelandic media the accusations against him are groundless and he would not take part in a "charade" to placate a public angry over the collapse of the banking system and the failure of the authorities to head off the crisis.