(Reuters) An Icelandic court sentenced four former Kaupthing bankers to jail on Thursday for market abuses related to a large stake taken in the bank by a Qatari sheikh just before it went under in late 2008.

Weeks before the country’s top three banks collapsed under huge debts as the global credit crunch struck, Kaupthing announced that Sheikh Mohammed Bin Khalifa Bin Hamad al Thani had bought 5 percent of its shares in a confidence-boosting move.

A parliamentary commission later said the shares had been bought with a loan from Kaupthing itself.

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