AMAGERBANKEN ~ $2.8 Billion Bank Failure In Denmark : Senior Bondholders Whacked 41%
It may turn out to be the most important bank you’ve never heard of.
Amagerbanken was taken over by the Danish government today.
As with the Irish banks,
Amagerbanken suffered huge losses on loans to property developers and investors in commercial real estate.
But the rescue comes under new regulations which stipulate steep losses for bondholders.
According to Bloomberg, senior bondholders and depositors over the insured limit will face losses of approximately 41%.