Leading Icelandic bankers convicted of fraud

Dec 30, 2012, 10:21 AM EST

Larus Welding, former chief executive of Glitnir, Iceland’s third-largest bank before its collapse in October 2008, and Gudmundur Hjaltason, the bank's chief financial officer, were sentenced to nine months in prison for fraud. Welding is the first leading bank chief executive to be convicted of a crime related to the financial crisis. Six months of both men's sentence are suspended for two years. The prosecutions were the first to be brought in Iceland against bankers after the collapse of the island's three largest lenders forced Iceland into an international bailout. Prosecutors has sought a mininum of five years in jail.