Tuesday, June 28, 2011
Denmark lets another bank fail
Denmark's Fjordbank Mors bank became the latest financial institution to fail over the weekend.
Danish bank shares fell today on concerns about the health of the country's small lenders after Fjordbank Mors became the latest to fail over the weekend.
Fjordbank Mors is the nineth Danish bank to collapse following the 2008-2009 financial crisis and the second to trigger a state-managed closure in which senior bondholders as well as shareholders will bear part of the losses.
The failure of Amagerbanken in February set a precedent in the European Union by making unsecured senior creditors liable for bank losses, highlighting the Danish government's resolve to shield taxpayers from the costs.