The Icelandic financial supervisory authority takes over Glitnir Bank

Glitnir headquartersBased on new legislation, the Icelandic financial supervisory authority (IFSA) has proceeded to take control of Glitnir Bank. The bank is now under the control of Arni Tomasson, accountant. David Oddsson said on behalf of the Central Bank of Iceland that the situation of Glitnir was far worse that forseen in an interview on the Icelandic national broadcasting service.According to the statement made by the chairman, Thorsteinn Baldvinsson, on Glitnir on behalf of the majority of the bank’s stakeholders, the actions of the Central Bank and Iceland’s Government had foreseen implications that contributed more than anything to the current situation that led to the bank crisis Iceland is now facing.

At the time the government and the Central Bank signed a declaration to Glitnir’s creditors under the title “The government of Iceland acquires 75% share in Glitnir bank” that the Central Bank on behalf of the Icelandic government would take over the debts of the bank and help it through this rough period.

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