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PRESS RELEASE


The Danish Bank, a Bank `Too Big
To Fail,' Is On the `Failing' List

COPENHAGEN, Feb. 9 (EIRNS)—"The Danish Bank Pressured by Politicians," wrote the main Danish news agency, Ritzau, today. "The Danish Bank is one of the most endangered banks in Europe, new research reveals. A majority in the Danish parliament is now demanding that the bank prepare itself better to weather bad times, writes Politiken" today. This article comes only a couple of days after the 10th-largest Danish bank, Amagerbanken, crashed.

The international think tank Bruegel has made a list of Europe's 18 most endangered banks — including the Danish Bank and Nordea, the latter associated with the Inter-Alpha Group— based on figures from the European Central Bank. Nicolas Veron, an analyst there, said, "It need not be a crash. Even problems in the bank may be detrimental to the country, or any of the other countries they do business in."

The chairman of the Danish parliament's Finance Committee, Kristian Thulesen Dahl, said that they are aware of the crucial role the Danish Bank plays in the country, and that is why they designed special bail-out packages, so that it could borrow money from the state. Therefore, he thinks that they ought to require the bank to have a greater amount of money in reserve, in order to deal with any problems." Politiken writes that there is a discussion of requiring the bank to add an additional 2-3% to the bank's capital, in this case, between EU2.25-3.5 million.

"There is concern at Christiansborg [the Danish parliament] which is fueled by new international research which labels Danish Bank as one of Europe's particularly endangered banks.

"This is so because its size and its cross-border activities have the effect that problems at the bank can pull the rug out from under not only the Danish economy, but also that in countries like Finland and Ireland.

"Thus, it can contribute to a new financial crisis in, at least, Europe, it is said."

At the same time, an analyst interviewed on Danish national television last night, stated that if the Danish Bank's bad loans were adjusted down, using the same criteria which caused Amagerbanken to declare bankruptcy, it would also be immediately declared bankrupt.