Swedish banks little exposed to Amagerbanken
Sweden’s biggest banks are claiming little if any exposure to the latest casualty of the global banking crisis, which is the bankruptcy of Denmark’s Amagerbanken.
The bank announced that expected writedowns of DK3bn reported for its final quarter would have exceeded its own capital, the value of which stood at about DK2.4bn by the end of its third quarter.
This left the bank with a net negative capital position, and in breach of solvency requirements, leaving it with no choice but to approach the Danish state owned company Finansiel Stabilitet, which is tasked with administering failed banks.
Branch operations will continue as before, however shareholders in the bank will come away with nothing but losses.
Today Swedbank said in a statement that “with reference to the information about the Danish bank, Amagerbanken, which has been declared bankrupt and taken over by Finansiel Stabilitet, owned by the Danish government, we hereby declare that Swedbank has no exposure to Amagerbanken.”
Nordea Bank head of communications Denmark Claus Christensen is reported by RB-Børsen – owned by Ritzaus Bureau, the national Danish news agency – as stating Nordea’s exposure amounts to a “negligible sum”