Skip to comments.Denmark's Max Bank transferred into state hands
Posted on 10/09/2011 7:50:15 PM PDT by DeaconBenjamin
COPENHAGEN (Reuters) - Denmark's Max Bank was transferred into state hands after it acknowledged at the weekend that it could no longer meet requirements for further write downs.
Its operations were to be transferred at the weekend to a new subsidiary under Finansiel Stabilitet, the state authority set up to handle failed Danish banks, Finansiel Stabilitet said in a statement late Saturday.
It would be the 10th bank to fall into state hands since the start of the financial crisis in 2008.
The transfer of operations will be made under a recent adjustment to an existing government bank aid package, and the transfer would be effective on October 8, Finansiel Stabilitet said.
The bank would still be able to service its customers, Finansiel Stabilitet said.
Last month, Danish political parties agreed to adjust a bank aid package to help the Nordic country's smaller liquidity-squeezed banks and promote mergers within the sector.
The agreement followed growing worries that more small Danish banks could fail. But it has offered little guarantee to creditors, which has contributed to a shortage of international funding to all but a handful of the country's biggest banks.
Also last month, Denmark's central bank threw a lifeline to the country's liquidity-squeezed banks by offering a new six-month loan based on its main lending rate and expanding the scope of collateral that it accepts from banks.
Max Bank reported a net loss of 60.3 million Danish crowns ($10.8 million) in the first half of the year following 79.2 million crowns of write downs, but kept its 2011 outlook of a 80 million to 100 million crowns profit.
($1 = 5.554 Danish crowns)
(Excerpt) Read more at news.yahoo.com ...
That boy... with his finger in the dike.....
He just hauled a$$....
Just to be a tad flip: I guess this’ll make it the Maxxed Out Bank now, eh?
that’s two this weekend, that we know of. This one and Dexia.
“..the scope of collateral ...”
And there it is in a nutshell. vs. propaganda like:
You're thinking of the Netherlands, not Denmark.
“You’re thinking of the Netherlands, not Denmark”
He was in the Netherlands too? I don’t think a little kid, like him, should be traveling like that without his parents!
Much ado about nothing. In socialist countries the governments own and control the banks, they just let the bankers operate them. Correctly, the state bank failed and the state finally recognized the failure.
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