Straumur Investment Bank
Encyclopedia
Straumur-Burdaras Investment Bank hf. was a regional investment bank
headquartered in Reykjavik
, Iceland
, that was closed by regulators in March 2009.
The company was mainly owned by Björgólfur Guðmundsson
and his son Björgólfur Thor Björgólfsson
. The latter was also the chairman of the board.
At one point, Straumur was Iceland's largest pure investment bank and the sixth-largest company on the OMX Nordic Exchange in Iceland
. Straumur had an established presence in ten countries including the UK, Denmark
, Sweden
, Finland
and the Czech Republic
.
On March 9, 2009, Straumur was nationalised by Icelandic authorities; according to Straumur, its "liquidity position was no longer strong enough to sustain activities". Straumur was the last of Iceland's four biggest banks to remain independent, during the financial crisis. On March 27, 2009, Staumur was closed with the CEO, William Fall, tendering his resignation.
Over the next few years, the fund grew rapidly and was merged with a number of other Icelandic investment funds. In 2004, the Icelandic Financial Supervisory Authority approved Straumur's application for a license to operate as a credit undertaking and three more sources of income – brokerage, debt finance and corporate finance – were added to create a more regular flow of income.
In September 2005, Straumur merged with Burdarás, creating Iceland’s largest investment bank. The newly merged organisation had a stronger balance sheet and shareholder base and was well positioned to start expanding its activities beyond Iceland.
May 2007 – Straumur acquired 62% share in eQ Bank
, a Finnish bank specialising in brokerage, asset management and corporate finance.
June 2007 – Straumur acquired 50% share in WOOD & Company, the leading independent investment house in Central and Eastern Europe.
July 2007 – As a result of a public tender offer, Straumur now controls over 95% of shares in eQ.
October 2008 - Straumur acquired West Ham United due to a large debt owed by Björgólfur Guðmundsson, who borrowed a large sum of money from the bank to purchase the club
January 2010 - Sold off 50% of West Ham United to David Gold and David Sullivan
for what was thought to be around £50,000,000
May 2010 - Sold off a further 10% of West Ham United to current owners Gold and Sullivan
August 2010 - Sold off a further 5% of West Ham United to a group of investors including former owner Terry Brown
Investment banking
An investment bank is a financial institution that assists individuals, corporations and governments in raising capital by underwriting and/or acting as the client's agent in the issuance of securities...
headquartered in Reykjavik
Reykjavík
Reykjavík is the capital and largest city in Iceland.Its latitude at 64°08' N makes it the world's northernmost capital of a sovereign state. It is located in southwestern Iceland, on the southern shore of Faxaflói Bay...
, 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...
, that was closed by regulators in March 2009.
The company was mainly owned by Björgólfur Guðmundsson
Björgólfur Guðmundsson
Björgólfur Guðmundsson was the chairman and former owner of West Ham United FC. Björgólfur was Iceland's second businessman worth more than a billion dollars — his son, Björgólfur Thor Björgólfsson being the first. He was ranked by Forbes magazine in March 2008 as the 1014th-richest person in the...
and his son Björgólfur Thor Björgólfsson
Björgólfur Thor Björgólfsson
Björgólfur Thor Björgólfsson , known internationally as Thor Bjorgolfsson, is an Icelandic businessman and entrepreneur, and former chairman of the financial firm Straumur-Burðarás and chairman of investment firm Novator Partners.He has been declared "Iceland's first billionaire", and was ranked as...
. The latter was also the chairman of the board.
At one point, Straumur was Iceland's largest pure investment bank and the sixth-largest company on the OMX Nordic Exchange in 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...
. Straumur had an established presence in ten countries including the UK, Denmark
Denmark
Denmark is a Scandinavian country in Northern Europe. The countries of Denmark and Greenland, as well as the Faroe Islands, constitute the Kingdom of Denmark . It is the southernmost of the Nordic countries, southwest of Sweden and south of Norway, and bordered to the south by Germany. Denmark...
, 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....
, Finland
Finland
Finland , officially the Republic of Finland, is a Nordic country situated in the Fennoscandian region of Northern Europe. It is bordered by Sweden in the west, Norway in the north and Russia in the east, while Estonia lies to its south across the Gulf of Finland.Around 5.4 million people reside...
and the Czech Republic
Czech Republic
The Czech Republic is a landlocked country in Central Europe. The country is bordered by Poland to the northeast, Slovakia to the east, Austria to the south, and Germany to the west and northwest....
.
On March 9, 2009, Straumur was nationalised by Icelandic authorities; according to Straumur, its "liquidity position was no longer strong enough to sustain activities". Straumur was the last of Iceland's four biggest banks to remain independent, during the financial crisis. On March 27, 2009, Staumur was closed with the CEO, William Fall, tendering his resignation.
History
Straumur was founded in October 1986 as the Equity Fund (Hlutabréfasjóðurinn hf.) – an incentive for individuals in Iceland to invest in shares – and by 2001 it had become an investment company.Over the next few years, the fund grew rapidly and was merged with a number of other Icelandic investment funds. In 2004, the Icelandic Financial Supervisory Authority approved Straumur's application for a license to operate as a credit undertaking and three more sources of income – brokerage, debt finance and corporate finance – were added to create a more regular flow of income.
In September 2005, Straumur merged with Burdarás, creating Iceland’s largest investment bank. The newly merged organisation had a stronger balance sheet and shareholder base and was well positioned to start expanding its activities beyond Iceland.
Strategic acquisitions
July 2006 – Straumur acquired 50.01% share of Stamford Partners, a specialist investment banking firm with operations in London and Amsterdam.May 2007 – Straumur acquired 62% share in eQ Bank
EQ Bank
eQ Bank Abp, founded in 1998, is a Finnish bank specialising in internet brokerage and asset management for retail clients. The parent company of eQ Bank Abp, eQ Corporation, was acquired by Straumur Investment Bank in 2007 for approx EUR 260 mln. Nordnet bought eQ Bank Abp in May 2009 for SEK 400...
, a Finnish bank specialising in brokerage, asset management and corporate finance.
June 2007 – Straumur acquired 50% share in WOOD & Company, the leading independent investment house in Central and Eastern Europe.
July 2007 – As a result of a public tender offer, Straumur now controls over 95% of shares in eQ.
October 2008 - Straumur acquired West Ham United due to a large debt owed by Björgólfur Guðmundsson, who borrowed a large sum of money from the bank to purchase the club
January 2010 - Sold off 50% of West Ham United to David Gold and David Sullivan
David Sullivan
David Sullivan is a Welsh-born British businessman and pornographer, who is also joint-chairman of West Ham United.He graduated in Economics from Queen Mary College, University of London. From 1986 until 2007 he owned the Daily Sport and Sunday Sport which he sold for £40 million...
for what was thought to be around £50,000,000
May 2010 - Sold off a further 10% of West Ham United to current owners Gold and Sullivan
August 2010 - Sold off a further 5% of West Ham United to a group of investors including former owner Terry Brown
Terry Brown
Terry Brown may refer to:*Terry Brown , English-Canadian record producer*Terry Brown , former chairman of West Ham United football club*Terry Brown , manager of AFC Wimbledon...
Icelandic credit crunch development
On March 9, 2009, the Icelandic Financial Supervisory Authority took control of Straumur. The FSA appointed a Resolution Committee which takes over all activity of the Board of Directors. On March 27, Straumur was closed.Sources
- Official Website - http://www.straumur.net
- Quarterly factsheet - Straumur Q3 07 Factsheet
- Annual Report - Straumur 2006 Annual Report