New Kaupthing Bank Takes Over Domestic Operations of Kaupthing banki hf.

22.10.2008

  • The new bank takes over Kaupthing´s domestic assets to ensure provision of normal banking services and the safety of deposits in Iceland.
  • Kaupthing´s international operations are separated.
  • All Kaupthing´s domestic braches, call centres, ATM´s and internet banking will be open for business as usual.

On 9 October 2008 the Financial Supervisory Authority, Iceland (FME) used powers granted by the Icelandic Parliament with reference to Article 100 of Act. No. 161/2002, as amended, to take control of Kaupthing banki hf.

The FME has now decided to transfer a part of Kaupthing´s operations to a new bank that has been formed and is fully owned by the Icelandic Government. The decision ensures continued banking operations for Icelandic families and businesses.

The decision means, inter alia, that the new bank takes over all the bank´s deposits in Iceland, and also the bulk of the bank´s assets that relate to its Icelandic operations, such as loans and other claims.

An independent evaluation of the value of assets and liabilities, together with a final settlement will be made within the next 90 days. The new bank´s equity will be ISK 75bn. and the size of the balance sheet will be around ISK 700bn.

Finnur Sveinbjörnsson has been appointed as Chief Executive of the new bank. The new bank´s formal name will be New Kaupthing Bank hf.

The decision can be found here.

For further information for the media please contact Íris Björk Hreinsdóttir, tel. +354 525 27 00 iris@fme.is or Úrsúla Ingvarsdóttir, ursula@fme.is tel. +354 525 27 00

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