|
The European Commission Monday said it hasn't yet cleared a Finnish State guarantee for the depositors of the Finnish branch of insolvent Kaupthing Bank (KAUP.IC).
Earlier Monday, the commission - the European Union's executive body - mistakenly sent out a statement saying it had cleared the guarantees.
The statement "has been withdrawn - the decision has not yet been taken by the commission," it said.
The Finnish measure under consideration involves guarantees local banks gave to Kaupthing's Finnish savers to ensure full compensation for the banks depositors against legal risks, the commission said.
As a result of Kaupthing Bank's failure, the branch's Finnish depositors were unable to make immediate withdrawals or might have lost part of their deposits. Fearing a broader loss of confidence among Finnish depositors in general, Finland's main banks - Nordea Bank Finland (NDA.SK), OP-Pohjola Group (POH1S.HE) and Sampo Bank PLC (SAMAS.HE) - offered to compensate depositors in full.
-By Peppi Kiviniemi, Dow Jones Newswires; +32 (0)2 741 1483; peppi.kiviniemi@dowjones.com
Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary. You can use this link on the day this article is published and the following day.
|