Kaupthing Bank

Kaupthing Bank was the largest bank in Iceland and the sixth largest in the Nordic countries. In her home country she appeared as Kaupthing Banki hf. [K ʰ œ͡yb̥θɪŋg̥ ] on ( Hf = Hlutafélag = Aktiengesellschaft). The company had offices in the UK, Sweden, Denmark, Finland, the Netherlands, Luxembourg, Switzerland, Germany, Austria, the USA and the Middle East. The bank had its headquarters in Reykjavík and employed approximately 3,200 people. Most of the foreign embassies went into bankruptcy or were closed. Kaupthing Edge Germany was on 9 October 2008 to 22 June 2009, under a moratorium. On 19 November 2009 the German branch was finally closed and the Bank's presence in Germany.

9 October 2008 Kaupthing was placed under state control. On October 31, presented the Icelandic Financial Supervisory FME set the insolvency of Kaupthing Bank and thus the compensation case.

On 21 November 2009 the Kaupthing Bank, New Kaupthing Bank was spun with domestic customers and activities in Iceland and later renamed Arion Bank out of the assets.

History

Kaupthing Bank was founded in 1982. Just four years later, she was one of the founding companies of the Icelandic Stock Exchange ( Iceland Stock Exchange). 2003, the Bank was merged with Bunadarbanki Íslands, founded in 1930 and went public. Kaupthing Bank was listed on the Iceland and the Stockholm Stock Exchange. On 9 October 2008, the Bank was established on the basis of the emergency law a few days earlier adopted under state control.

On October 9, Kaupthing Bank stopped all payments to their clients and liquidity provision and for their branches abroad. Also on October 9, 2008 announced the Icelandic Financial (FME ) that the business of the bank, Kaupthing, by an administrator Committee, the " Resolution Committee " to be continued. The main task of this committee was to liquidate the assets of the Bank within the meaning of the creditors' benefit. The administrator Committee reported its interim results at regular intervals before a creditor committee, the "ICC ".

On October 22, 2008, the New Kaupthing was established for maintaining the Icelandic payments. All foreign activities of the bank were in the Old Kaupthing - a sort of bad bank - summarized.

On 24 November 2008, the District Court in Reykjavik provided the bank with a bankruptcy protection moratorium was extended until 13 November 2009. Olafur Gardarsson, representative of the Supreme Court, monitors compliance with the moratorium and works with the committee administrator of the bank together.

On 5 February, the manager of the Bank Committee introduced the creditors before the first comprehensive report on the financial position of the Bank. In this interim balance sheet an asset debt of 2,400 billion ISK were about 1,200 billion compared to ISK. Additional interim reports published Kaupthing hf. at monthly intervals on the homepage.

On 25 May 2009 the administrator Committee of Kaupthing first announced at an early liquidation proceedings.

According to the reports of the radio station RUV in Reykjavik to Hreidar Már Sigurdsson, the former head of the former Kaupthing Bank, be brought before a judge on May 7, 2010. He is accused of embezzlement and violations of the Stock Corporation Act. Magnus Gudmundsson, the former head of Kaupthing Luxembourg branch, was also arrested.

Business

Kaupthing Bank hf. was a universal bank and offered to companies and private financial services, ranging from business-related services on capital markets services to the asset management and private banking and investment banking.

In August 2007, NIBC Bank have headquarters in The Hague and Kaupthing Bank announced that Kaupthing NIBC would take over for 2.99 billion euros - with the exception of the loss-making investments of NIBC in the U.S. subprime mortgage market. Due to the financial crisis in 2007, the takeover negotiations finally broke down in January 2008.

Since the outbreak of the international credit crisis in the summer of 2007, and a 35 -percent depreciation of the Icelandic krona within a few months the Icelandic banks are considered as particularly vulnerable. Therefore, the international rating agencies lowered the credit ratings for Kaupthing Bank several times. After the nationalization of Kaupthing Bank and the freezing of the foreign customer accounts lowered Fitch Ratings on October 9, 2008, the credit rating to D ( -payment, failure). Moody's, the Kaupthing Bank, despite the known difficulties still on 8 October 2008 Reviewed by A1, the rating lowered on 10 October 2008 to Caa1 or to C ( in default of payment ) for the subordinated debt.

Stronger than through direct customer deposits, however, the Kaupthing Bank refinanced primarily through the issuance of bonds in the international financial markets, as well as through borrowing in the interbank market. So Kaupthing Bank signed last in June 2008 a loan agreement with RZB, Bank of America, BayernLB and Lloyds TSB on a loan of 275 million euros. According to semi- annual report 2008, Kaupthing Bank had by mid-2008, outstanding loans, totaling 2,883 billion kroner, of which 1.898 billion crowns in the form of bonds, as well as customer deposits in the amount of 1.848 billion crowns. As of October, 2008, Kaupthing hf. claims to be abroad, with offices in:

• Germany ( Kaupthing Edge Germany)
• Austria ( Kaupthing Edge Austria )
• Finland ( Kaupthing Bank Finland )
• Norway ( Kaupthing Bank Norway)
• Dubai ( Dubai and Qatar Kaupthing Bank )

And daughters:

• United Kingdom ( Kaupthing Singer & Friedlander Limited)
• Luxembourg ( Kaupthing Bank Luxembourg and Belgium ) with offices in Belgium ( Kaupthing Bank Belgium ) and Geneva ( Geneva Kaupthing Bank )
• Denmark ( FIH)
• Sweden ( Kaupthing Bank Sweden)
• USA ( Kaupthing Bank U.S. )
• Japan
• Hong Kong

Kaupthing Edge

Under the brand Kaupthing Edge Kaupthing Bank stepped in several European countries until October 8, 2008 as the online bank and offered a daily allowance account and various deposit accounts. She presented herself as an online bank with a higher interest rate compared to other banks and direct banks. In the first half of the year, the Bank had won in Germany, England, Austria, Switzerland and Scandinavia 140,000 new customers with deposits of more than 2.7 billion euros.

Deposit insurance

The bank was connected to the Icelandic deposit insurance fund. This fund is protected according to the bank, the deposits of each individual customer - even in Germany - up to an altitude of 20,887 euros to 100 %, this amount is guaranteed, regardless of the price of the crown from the Icelandic State. The Icelandic state had to step in if the money in the fund is not sufficient, however, has adopted the position to pay only to Icelandic citizens, as the foreign liabilities are so large that they would lead to the bankruptcy of Iceland, if operated would have. Since 10 October 2008, Kaupthing Edge link to their website in addition to the Icelandic deposit insurance fund. The Icelandic deposit guarantee (TIF) has already confirmed on 13 October its fundamental responsibilities for investors of German Kaupthing Edge, whereupon they had correctly pointed out in the Terms and Conditions and FAQ published on its website.

Germany

The Icelandic parent company Kaupthing Bank hf. was represented with a branch in Frankfurt am Main in March 2008. By early October, the Bank 50,000 German customers with deposits of 500 million euros, according to FTD had.

Since October 8, 2008, 16:40:10 clock no customer could have his money, because the DZ- Bank, the balances in the amount of 55 million euros on the clearing account of Kaupthing Edge Germany on this day, because of their own risky had exposure to Iceland seized. On 9 October 2008, the Icelandic Financial Supervisory Authority (FME Fjármálaeftirlitið ) took over at the request of the bank instead of the shareholders, the control of the Bank. The Federal Financial Supervisory Authority ( BaFin) imposed a moratorium on the same day, a payment and prohibition of sale of the German branch of Kaupthing Bank to prevent a rash, disorderly withdrawal of deposits. After BaFin information assets were affected by 30,800 Germans in a total amount of 308 million euros. These figures were later revised upwards. Thus were affected approximately 34,000 customers. On October 31, presented the Icelandic deposit insurance fund insolvency of Kaupthing Bank retroactive to October 9, 2008 fixed. There is thus a compensation claim, which is limited by Icelandic legislation at a height of € 20,887 for German customers of the bank. The state guarantees from the German government, the German Chancellor Angela Merkel presented on October 5, 2008, was not picked up by the Federal Ministry of Finance believes. According to the BaFin is also liable no German deposit insurance for the money. On November 22, 2008 Finance Minister Peer Steinbrueck announced that all German customers of Kaupthing Bank their deposits will be refunded. Together with the United Kingdom and the Netherlands, whose claims are but partially disputed by Iceland, the Federal Government of the Icelandic deposit guarantee offered on a special-purpose loan of the German deposits, however this offer was not accepted.

The Icelandic President Ólafur Ragnar Grimsson said after the riots because of sovereign default in an interview with the Financial Times Germany on 10 February 2009, it was not to give the Icelandic taxpayers that they must now also pay more for the losses German savers. Foreign investors could not expect Iceland bear the whole burden of the financial crisis. On 17 April 2009, the Icelandic Prime Minister Johanna Sigurdardottir, who possess Kaupthing Bank expressed sufficient assets to pay the German savers their money. This was also released on the same day on the website of the bank Kaupthing Edge. While the administrators Committee of the Icelandic Kaupthing published already in its first report on 10 February that Kaupthing is in possession more than 80 % of the necessary funds for capital repayment and also wanted to repay itself, 100 % of the necessary sum was provided in April 2009.

The Bank began on 22 May 2009 with the procedure for redemption by sending form letters in which the confirmation of the customer data and a warrant was requested for payment. The repayment of the balance was launched on 22 June 2009 Concerning the interest rates announced by the Bank with: . " Investors who want to make your interest claims against Kaupthing Bank contends, will be able to do this as soon as the formal procedure for this situation will. " on 10 July 2009, Kaupthing Bank has already paid back most of the deposits to the 34,000 savers. Interest were initially no paid if they had not been credited before 8 October 2008. On 23 July 2009 notified the Federal Ministry of Finance that the technical processing delayed repayment.

With the seizure of the DZ Bank repayment was considerably delayed because Kaupthing Edge Germany had to find a new settlement agent. In addition, according to information from the Federal Ministry of Finance was the danger that further payments of Kaupthing Bank had also been seized in the direction of Germany. For the execution of the repayment transfers the German Bundesbank was commissioned after about 6 months. The money thus flowed from the Icelandic central bank, the Bundesbank to the savers. The repayment took place in different payout rounds. Payment dates were: June 25, 2009, approximately 20,000 payments, July 2, 2009 about 10,000, July 9, 2009 200 15 July, 2009 50-100 and 22 July 2009 500-1000 payments. The figures are estimated on the basis of media reports and Internet surveys of victims. It was announced by the Managing Director of the German subsidiary Kaupthing that all customers who have received no payment until July 2, 2009 issue cases are. Unclear, however, was why customers multiple accounts with Kaupthing had an account and were already paid or for whom information has not changed, did not receive any repayment before 22 July 2009.

Luxembourg

The Luxembourg branch was in accordance with a restructuring plan in the Banque Havilland SA converted, the existing location opened its doors on 13 July 2009. On 28 September 2009 the official inauguration took place. Magnus Gudmundsson participated as CEO of the new bank.

The Grand Duchy of Luxembourg is liable with its deposit insurance for the Grand Duchy of Luxembourg Banque Havilland SA new independently operating

Magnus Gudmundsson was arrested on 7 May 2010 in connection with the collapse of the former Kaupthing Bank. On 11 May 2010 two more lives in Luxembourg former manager of the bank have been arrested in Iceland.

Through these operations, comes to the fore, that at the same time, when the bank was founded Havilland, Hreidar Már Sigurðsson had his consulting firm Consolium moved from Iceland to Luxembourg.

UK, Sweden, Netherlands

In the UK, the government has, the damaged British investors to secure their deposits by lending to Iceland in the similar case of Icesave, Kaupthing stored, a branch of Iceland's Landsbanki, determined. It was Iceland a loan of about 3 billion pounds ( 3.8 billion euros ) granted in order that British savers get compensation for their deposits with the Icelandic Icesave bank.

Also, Sweden and the Netherlands awarded to Iceland earmarked loans to prevent the loss of deposits of their depositors in Icelandic banks.

Austria

The Icelandic parent company Kaupthing Bank hf. was represented since September 4, 2008 with a branch office in Vienna.

On 9 October 2008, the Austrian Financial Market Authority ( FMA ), the Austrian branch with immediate effect prohibits the receipt of client funds and frozen all the savings on Austrian accounts of this bank.

Starting on 29 October 2008, the deposits including interest, the Austrian customers referred to the reference accounts. On 31 December 2008, the branch Austria has ceased all its activities.

Switzerland

In Switzerland, the Kaupthing Bank since June 2008, was on its Luxembourg subsidiary Kaupthing Bank Luxembourg SA active. This maintained a branch in Geneva.

From the access barrier were affected with deposits of 35 million Swiss francs in Switzerland about 1,700 savers. The Swiss Federal Banking Commission established in this respect a two investigators, clarify the financial situation of the Institute. Moreover, it has to protect savings prohibits all payments with CHF 5,000 of the bank. As part of the Swiss depositor protection end of October 2008 customers who have made ​​a request to get the specified maximum amount of CHF 30,000 paid. The payment of deposits of more than 30,000 francs, including interest rates, depends according to the specifications of the SFBC and the investigators of the development of the situation in Iceland, the result of the conducted between Luxembourg, Belgium and Iceland discussions and the outcome of the procedure used at the headquarters the bank in Luxembourg.