Iceland‘s fourth-largest and only independent bank, Straumur-Burdaras, was nationalized Monday, approximately six months after the country’s top three banks collapsed within a week due to the world economic crisis.
“In spite of its strong capital position and the support of funding banks, Straumur believes its liquidity position is no longer strong enough to sustain activities,” the bank said in a statement. As with all of the Icelandic banks, all deposits are fully secured.
Straumur-Burdarás HQ
The bank’s CEO William Fall has resigned, affective immediately.
Straumur-Burdarás announced a February loss of nearly EUR 700 million (USD 892 million) after taxes in 2008, which 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).
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