EU: Still Mulling Finnish Guarantee For Kaupthing Savers
January 19 2009 - 6:31AM
Dow Jones News
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The statement "has been withdrawn - the decision has not yet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
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