Danish Bank Fails, Bondholders to Take Haircuts

bloomberg.com/news/2011-02-07/danish-banks-face-consolidation-as-amagerbanken-leaves-investors-in-lurch.html

That’s very mean of them isn’t it?

Maybe we could extend the Irish guarantee to cover the Danish bondholders .

You’d think the Danes would just forget about education, healthcare, capital spending, investment etc for the next 30 years and just cough up the cash.

Selfish really…
Let me guess… the bondholders were Irish banks :slight_smile:

It seems their bailout wasn’t “the envy of the world”. So are the Danes now “a pariah” with foreigners not going anywhere near the country?

I guess the Brussels Boys couldn’t bully the Vikings into paying up. We look so f**king spineless.

Difference between Denmark and Ireland is that Denmark can still borrow money on international markets because its debt and deficit are under control.

Yield on 10yr danish bonds is 3.3%
bloomberg.com/apps/quote?ticker=GDGB10YR:IND

The choices about which bank liabilities we guarantee are not ours anymore but those of last person willing to lend us money to pay our running costs.

We are now entirely dependent on the EU for trade and credit so the idea that we can unilaterally do anything is a joke.

‘Systemic importance’…

Write it out 100 times!

Does their non-membership of the euro permit them to do so?

AmagerDen…

Ireland doesn’t do bailouts (properly), but if we did, they would probably be the cheapest bailouts in the world (so far).

If I understand the article correctly, the prospect of depositor losses has not been confirmed, but commentators think it will happen. What does

mean, if the guarantee has expired?

you can bet Lenny is trying to find a way…Trichet thinks it would be a good idea too.

Dunno, but perhaps depositors have had some long-standing protection (say equivalent to €20k) and the system has reverted back to that, as would have happened in Ireland had the new scheme not been extended.

ftalphaville.ft.com/blog/2011/06 … f-failure/
(Courtesy of the other grumpy on IE.ie)

‘Bad bets on commercial loans’ caused Danish failure - Peter Levring, Bloomberg → irishexaminer.com/business/b … 21023.html