The investment bank Straumur-Burdarás has been closed because of a poor liquid cash position and its operations have been taken over by the Icelandic state. The bank’s CEO William Fall has resigned, affective immediately.
The headquarters of Straumur-Burdarás in Reykjavík. Photo by Eygló Svala Arnarsdóttir.
The Financial Supervisory Authority (FME) released a statement in relation to this story, guaranteeing deposits in the Icelandic commercial banks, in accordance with a decision made by the government on October 6, 2008, ruv.is reports.
In February, Straumur-Burdarás announced a loss of nearly EUR 700 million (USD 892 million) after taxes in 2008, which, according to ruv.is, is the highest loss ever reported by an Icelandic company.
The bank’s capital position was negative by ISK 20 billion (USD 177 million, EUR 139 million) and its debts amounted to ISK 255 billion (USD 2.3 billion, EUR 1.8 billion).