New State-Run Glitnir Bank Established

A new Glitnir, Nýr Glitnir banki hf., has been formally established as announced by the Financial Supervisory Authority (FME) yesterday. The new bank will take over Glitnir’s domestic assets to secure regular banking operations and the safety of deposits in Iceland.

The new bank will not be involved in Glitnir Bank’s international operations, ruv.is reports, but all branches in Iceland, service centers and online banks are open.

The new Glitnir has ISK 110 billion (USD 1.0 billion, EUR 0.7 billion) in equity as submitted by the state. The size of the balance sheet is ISK 1,200 billion (USD 10.9 billion, EUR 8.0 billion).

Birna Einarsdóttir is the new director of the bank. A woman has also been hired as the new director of Landsbanki and the Financial Times commented that women were now responsible for tidying up the mess created by their male colleagues.

Ninety-seven employees of Glitnir Bank were given notice yesterday. Around 500 people have lost their jobs in total at Glitnir and Landsbanki, which were nationalized last week. Earlier reports stated that 500 people at Landsbanki alone would lose their jobs.

Einarsdóttir told RÚV that the salaries of many of Glitnir’s remaining employees, including herself, will be reduced.

It is still unclear how many employees of Kaupthing Bank, which was also taken over by the state last week, will be left unemployed.

icelandreview.com