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Glitnir (bank)
Encyclopedia
Glitnir was an international Iceland
ic bank
. It was created by the state-directed merger of the country's three privately held banks - Alþýðubanki (Union Bank), Verzlunarbanki (Bank of Commerce) and Iðnaðarbanki (Industrial Bank) - and one failing publicly held bank - Útvegsbanki (Fisheries Bank) - to form Íslandsbanki in 1990. At the time, Íslandsbanki was the only major privately held commercial bank in Iceland. It was publicly listed on the Iceland Stock Exchange
, in 1993. Íslandsbanki subsequently merged with FBA Icelandic Investment Bank in 2000.
On 20 February 2009, in light of the Icelandic financial crisis, the bank’s name was changed back to the original Íslandsbanki
.
By 15 October 2009, it was decided that 95% of the new Íslandsbanki
would be taken over by the creditors of Old Glitnir, while the government of Iceland
would retain ownership of the remaining 5%.
and Baugur Group reportedly by a number of companies which have address in a single mailbox in British Virgin Islands.
The financial group Glitnir offered universal banking and was a leading niche player in three global segments; seafood/food, sustainable energy
, and offshore
supply vessels
. Glitnir operated branches in London
and Copenhagen
, and had representative offices in Halifax, Canada and in Shanghai
, China
. Services included retail, corporate and investment banking, stock trade and capital management. Glitnir also had a fully owned bank in Luxembourg
(Glitnir Bank Luxembourg S.A) and banks and financial services companies in Norway
.
Glitnir considered Iceland
and Norway
its home markets. Since 2004, Glitnir had acquired BNbank and Glitnir bank (previously Kredittbanken), Glitnir Securities (previously Norse Securities) and Glitnir Kapitalforvaltning, the factoring company Glitnir Factoring (previously FactoNor), and 50.1 percent of Union Gruppen in Norway. In addition, Glitnir's subsidiary BNbank acquired 45 per cent of the shares in Norsk Privatøkonomi ASA, an independent financial advisory company with 12 branches in key areas of Norway, in July 2006.
Glitnir continued to expand its operations in the Nordic countries
. In Sweden
, Glitnir owns the leading Swedish brokerage firm Glitnir AB (formerly Fischer Partners). The acquisition of 68.1 per cent of the shares in the Finnish investment firm FIM was announced in early February 2007 and completed later in the spring of 2007. Glitnir announced strong profits for 2006, with a return on equity after tax of 39.4 per cent.
nationalised Glitnir by acquiring a 75% share in the bank for €
600 million through the Icelandic Financial Supervisory Authority. The government stated that it did not intend to keep the ownership of the bank for a long term period.
The Norwegian
subsidiary of Glitnir Bank, Glitnir Bank ASA, was sold for NOK
300 million on October 21, 2008, or ISK
5.5 billion, but its current worth is estimated at ISK
36.5 billion. Glitnir Bank ASA was bought by 20 savings banks. The takeover was led by Finn Haugan, the managing director of Sparebanken Midt-Norge
which acquired a 25-percent stake in the bank. SpareBank 1 SMN is headquartered in Trondheim
and is Central Norway’s largest financial group.
Thorsteinn M. Jonsson
was elected Chairman of the Board in April 2007.
Þorsteinn Már Baldvinsson was elected Chairman of the Board in February 2008.
Iceland
Iceland , described as the Republic of Iceland, is a Nordic and European island country in the North Atlantic Ocean, on the Mid-Atlantic Ridge. Iceland also refers to the main island of the country, which contains almost all the population and almost all the land area. The country has a population...
ic bank
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
. It was created by the state-directed merger of the country's three privately held banks - Alþýðubanki (Union Bank), Verzlunarbanki (Bank of Commerce) and Iðnaðarbanki (Industrial Bank) - and one failing publicly held bank - Útvegsbanki (Fisheries Bank) - to form Íslandsbanki in 1990. At the time, Íslandsbanki was the only major privately held commercial bank in Iceland. It was publicly listed on the Iceland Stock Exchange
Iceland Stock Exchange
NASDAQ OMX Iceland or ICEX was established in 1985 as a joint venture of several banks and brokerage firms on the initiative of the central bank. Trading began in 1986 in Icelandic government bonds, and trading in equities began in 1990. Equities trading increased rapidly thereafter...
, in 1993. Íslandsbanki subsequently merged with FBA Icelandic Investment Bank in 2000.
On 20 February 2009, in light of the Icelandic financial crisis, the bank’s name was changed back to the original Íslandsbanki
Íslandsbanki
Íslandsbanki is an Icelandic bank.-First Íslandsbanki:Íslandsbanki was originally created in 1990 through the merger of Alþýðubanki , Verzlunarbanki and Iðnaðarbanki...
.
By 15 October 2009, it was decided that 95% of the new Íslandsbanki
Íslandsbanki
Íslandsbanki is an Icelandic bank.-First Íslandsbanki:Íslandsbanki was originally created in 1990 through the merger of Alþýðubanki , Verzlunarbanki and Iðnaðarbanki...
would be taken over by the creditors of Old Glitnir, while the government of Iceland
Iceland
Iceland , described as the Republic of Iceland, is a Nordic and European island country in the North Atlantic Ocean, on the Mid-Atlantic Ridge. Iceland also refers to the main island of the country, which contains almost all the population and almost all the land area. The country has a population...
would retain ownership of the remaining 5%.
Ownership
A third of the company was owned by Stodir. A large share of Stodir was controlled by Baugur GroupBaugur Group
Baugur Group was an Icelandic investment company. The group applied for bankruptcy protection in February 2009, after placing its UK arm in administration.- History :...
and Baugur Group reportedly by a number of companies which have address in a single mailbox in British Virgin Islands.
Overview of operations
Sustainable energy
Sustainable energy is the provision of energy that meets the needs of the present without compromising the ability of future generations to meet their needs. Sustainable energy sources include all renewable energy sources, such as hydroelectricity, solar energy, wind energy, wave power, geothermal...
, and offshore
Offshore (hydrocarbons)
"Offshore", when used relative to hydrocarbons, refers to an oil, natural gas or condensate field that is under the sea, or to activities or operations carried out in relation to such a field...
supply vessels
Platform supply vessel
A Platform supply vessel is a ship specially designed to supply offshore oil platforms. These ships range from 20 to 100 meters in length and accomplish a variety of tasks...
. Glitnir operated branches in London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
and Copenhagen
Copenhagen
Copenhagen is the capital and largest city of Denmark, with an urban population of 1,199,224 and a metropolitan population of 1,930,260 . With the completion of the transnational Øresund Bridge in 2000, Copenhagen has become the centre of the increasingly integrating Øresund Region...
, and had representative offices in Halifax, Canada and in Shanghai
Shanghai
Shanghai is the largest city by population in China and the largest city proper in the world. It is one of the four province-level municipalities in the People's Republic of China, with a total population of over 23 million as of 2010...
, China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
. Services included retail, corporate and investment banking, stock trade and capital management. Glitnir also had a fully owned bank in Luxembourg
Luxembourg
Luxembourg , officially the Grand Duchy of Luxembourg , is a landlocked country in western Europe, bordered by Belgium, France, and Germany. It has two principal regions: the Oesling in the North as part of the Ardennes massif, and the Gutland in the south...
(Glitnir Bank Luxembourg S.A) and banks and financial services companies in Norway
Norway
Norway , officially the Kingdom of Norway, is a Nordic unitary constitutional monarchy whose territory comprises the western portion of the Scandinavian Peninsula, Jan Mayen, and the Arctic archipelago of Svalbard and Bouvet Island. Norway has a total area of and a population of about 4.9 million...
.
Glitnir considered Iceland
Iceland
Iceland , described as the Republic of Iceland, is a Nordic and European island country in the North Atlantic Ocean, on the Mid-Atlantic Ridge. Iceland also refers to the main island of the country, which contains almost all the population and almost all the land area. The country has a population...
and Norway
Norway
Norway , officially the Kingdom of Norway, is a Nordic unitary constitutional monarchy whose territory comprises the western portion of the Scandinavian Peninsula, Jan Mayen, and the Arctic archipelago of Svalbard and Bouvet Island. Norway has a total area of and a population of about 4.9 million...
its home markets. Since 2004, Glitnir had acquired BNbank and Glitnir bank (previously Kredittbanken), Glitnir Securities (previously Norse Securities) and Glitnir Kapitalforvaltning, the factoring company Glitnir Factoring (previously FactoNor), and 50.1 percent of Union Gruppen in Norway. In addition, Glitnir's subsidiary BNbank acquired 45 per cent of the shares in Norsk Privatøkonomi ASA, an independent financial advisory company with 12 branches in key areas of Norway, in July 2006.
Glitnir continued to expand its operations in the Nordic countries
Nordic countries
The Nordic countries make up a region in Northern Europe and the North Atlantic which consists of Denmark, Finland, Iceland, Norway and Sweden and their associated territories, the Faroe Islands, Greenland and Åland...
. In Sweden
Sweden
Sweden , officially the Kingdom of Sweden , is a Nordic country on the Scandinavian Peninsula in Northern Europe. Sweden borders with Norway and Finland and is connected to Denmark by a bridge-tunnel across the Öresund....
, Glitnir owns the leading Swedish brokerage firm Glitnir AB (formerly Fischer Partners). The acquisition of 68.1 per cent of the shares in the Finnish investment firm FIM was announced in early February 2007 and completed later in the spring of 2007. Glitnir announced strong profits for 2006, with a return on equity after tax of 39.4 per cent.
Government takes control
On October 7, 2008, the Government of IcelandIceland
Iceland , described as the Republic of Iceland, is a Nordic and European island country in the North Atlantic Ocean, on the Mid-Atlantic Ridge. Iceland also refers to the main island of the country, which contains almost all the population and almost all the land area. The country has a population...
nationalised Glitnir by acquiring a 75% share in the bank for €
Euro
The euro is the official currency of the eurozone: 17 of the 27 member states of the European Union. It is also the currency used by the Institutions of the European Union. The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,...
600 million through the Icelandic Financial Supervisory Authority. The government stated that it did not intend to keep the ownership of the bank for a long term period.
The Norwegian
Norway
Norway , officially the Kingdom of Norway, is a Nordic unitary constitutional monarchy whose territory comprises the western portion of the Scandinavian Peninsula, Jan Mayen, and the Arctic archipelago of Svalbard and Bouvet Island. Norway has a total area of and a population of about 4.9 million...
subsidiary of Glitnir Bank, Glitnir Bank ASA, was sold for NOK
NOK
NOK or Nok may refer to:*Kiel Canal *Norwegian krone, NOK is the ISO 4217 code and is used as an abbreviation for the currency.*NYSE stock ticker for Nokia Corporation, based in Finland...
300 million on October 21, 2008, or ISK
Isk
Isk or ISK may mean:* Icelandic króna, the national currency of Iceland* Internationaler Sozialistischer Kampfbund, a now-defunct German socialist party* Iso suomen kielioppi* the currency in the space MMORPG Eve Online...
5.5 billion, but its current worth is estimated at ISK
Isk
Isk or ISK may mean:* Icelandic króna, the national currency of Iceland* Internationaler Sozialistischer Kampfbund, a now-defunct German socialist party* Iso suomen kielioppi* the currency in the space MMORPG Eve Online...
36.5 billion. Glitnir Bank ASA was bought by 20 savings banks. The takeover was led by Finn Haugan, the managing director of Sparebanken Midt-Norge
Sparebanken Midt-Norge
Sparebanken Midt-Norge is a Norwegian savings bank based in Trøndelag.Sparebanken Midt-Norge has 71 branches in 51 municipalities in Central Norway and is part of the bank alliance SpareBank 1. In Nord-Trøndelag and Sør-Trøndelag the bank is branded SpareBank 1 Midt-Noge while it is branded...
which acquired a 25-percent stake in the bank. SpareBank 1 SMN is headquartered in Trondheim
Trondheim
Trondheim , historically, Nidaros and Trondhjem, is a city and municipality in Sør-Trøndelag county, Norway. With a population of 173,486, it is the third most populous municipality and city in the country, although the fourth largest metropolitan area. It is the administrative centre of...
and is Central Norway’s largest financial group.
Glitnir management
Lárus Welding was the Chief Executive Officer of Glitnir when the bank was taken into government administration late September 2008. The Chief Executive Officer appointed by the Bank's Board of Directors is responsible for the day-to-day operation of the Bank pursuant to the policy and resolutions of the Board of Directors. It is also the task of the CEO to ensure that the bank's operations are at all times consistent with the Articles of Association of the Company and applicable legislation.Thorsteinn M. Jonsson
Thorsteinn M. Jonsson
Þorsteinn M. Jónsson was the Chairman of Glitnir Bank and is the current Chairman of Vífilfell hf. , on the Board of Directors of Refresco Holding BV. and Teymi hf....
was elected Chairman of the Board in April 2007.
Þorsteinn Már Baldvinsson was elected Chairman of the Board in February 2008.
External links
- Official Home Page - http://www.glitnir.is/
- Official Home Page - http://www.glitnir.no/
- Official Home Page - http://www.glitnir.se/
- Official Home Page - http://www.glitnirbank.com
- Forbes Global 2000 (2007)