European Tribune - Comments - Nationalisation is the solution

Nationalisation is the solution | 72 comments (72 topical, editorial, 0 hidden)

Re: Crossposted from DailyKos (4.00 / 3)

Regarding the swedish experiences as discussed at big orange (where I do not have an account):

Daily Kos: Nationalisation is the solution

It was full nationalisation

I would say it was partial nationalisation and strong re-regulation. It was a lot of different actions taken. The best description I have found is from swedish wikipedia. The article is not very good (it appears to lean heavily on one source and lacks proper sourcing) but I will translate the key part anyway as it illustrates the mix of actions taken. Unfortunately I lack the sources to improve it.

Finanskrisen i Sverige 1990-1994 - Wikipedia

The financial crisis in Sweden 1990-1994

Bankernas kreditförluster mellan 1990 och 1993 var, enligt professor Johan Lybeck, 179 miljarder kronor, varav skattebetalarna stod för 65 miljarder - främst till Nordbanken och Götabanken. 50 miljarder kronor fick bankernas ägare stå för genom lägre avkastningar medan bankernas kunder genom sämre sparräntor och högre låneräntor antas stått för det resterande.

Nordbanken (numera Nordea) köptes ut av staten för att förhindra banken att gå omkull. Banken hade 1989 fusionerats med PK-banken. Staten pumpade in 65 miljarder i affären, dock bedöms banken ha ett visst värde varför förlusten antas ha kostat skattebetalarna omkring 35 miljarder kronor. Nordbanken köpte därefter den konkursmässiga Gotabanken. När Nordbanken inte klarar kapitaltäckningskravet på 8 % genomfördes en nyemission på 5,2 miljarder kronor, varav staten tecknade 4,2 miljarder. I samband med detta ökade Statens ägarandel från 70 till 77 %. Senare såldes Nordbanken, då i ett bättre börsklimat, och staten återfick en stor del av pengarna.

SE-banken, Wallenbergarnas kronjuvel, begärde först hjälp av staten om stöd för att klara situationen, men klarade sig till slut undan konkurs utan statligt ingripande genom att öka vidden mellan in- och utlåningsräntan, vilket innebar att förlusten vältrades över på bankens låntagare. Banken hade lite tur med att marknadsräntan gick ned. Då sänkte man inlåningsräntan, men utlåningsräntan bara för kunder med svårigheter så att kreditförlusterna kunde skrivas ned.

Första Sparbanken drabbades av betydande kreditförluster och uppfyllde ej kapitaltäckningskravet på 8 %, Sparbankernas Bank var villig att garantera likviditetstillförseln varför banken ej initialt behövde stöd från skattebetalarna. Då detta inte visade sig räcka lämnade staten ett borgensåtagande på 4,2 miljarder kronor till sparbanksstiftelsen. Som säkerhet tog staten 70 % av sparbanksstiftelsernas aktier i pant. Slutligen fusionerades Första Sparbanken in i Sparbanken Sverige.

Föreningsbanken klarade sig relativt helskinnade, men fick del i den så kallade kapitaltäckningsgarantin.

Handelsbanken var den bank som klarar sig bäst genom krisen.

The banks credit losses between 1990 and 1993 was - according to professor Johan Lybeck - 179 billion SEK, of which the taxpayers ended up paying 65 billions - primarily to Nordbanken and Götabanken. 50 billions was payed by the banks owners through lower yields while the customers payed the rest through lower rents on savings and higher rents on loans.

Nordbanken (now Nordea) was bought by the government to prevent the bank from bankruptcy. The bank had in 1989 fusioned with PK-banken. The government infused 65 billion SEK in the deal, though as the bank was deemed to have some value, the cost for the tax-payers is estimated at 35 billion SEK. Nordbanken then bought Gotabanken which was on the verge of bankruptcy. When Nordbanken failed the reserve requirements of 8% a new emission of stocks was done to the tune of 5,2 billion SEK of which the governemnt bought 4,2 billion. Thus the governmental share increased from 70% to 77%. Later Nordbanken was sold, in a better stock market climate, and the governement recuperated a lot of the money.

SE-banken, the crown jewel of the Wallenberg family, first asked for assistance to cope, but eventually avoided bankruptcy without governmental intervention through an increased spread between savings and loans rents, which means that the losses was passed on to the lenders. The bank had some luck and market rents went down. Then savings rents was decreased but loans rents was only decreased for customer that was otherwise unable to pay. Thus credits losses could be written down.

Första Sparbanken (First Savings bank) had serious credit losses and did not fulfill the reserve requirements of 8%. Sparbnkaernas bank (the Savings banks bank) was willing to guarantee the liquidity wherefore the bank initially did not tax payers support. When this turned out to be to little the government posted a bond to the amount of 4,2 billion SEK. As security the government took 70% of the savings banks foundations stock in escrow. Eventually Första Sparbanken was fused into Sparbankerna Sverige.

Föreningsbanken managed itself relatively safe and sound, but took part in the so called reserve requirement guarantee.

Handelsbanken was the bank the managed the crisis best.

A vote for PES is a vote for EPP! A vote for EPP is a vote for PES! Support the coalition, vote EPP-PES in 2009!

by A swedish kind of death on Wed Oct 8th, 2008 at 08:21:21 AM EST
[ Parent ]

Re: Crossposted from DailyKos (4.00 / 2)

We are discussing the scandinavian bank crises in the nineties here if you are interested: http://www.eurotrib.com/?op=displaystory;sid=2008/10/6/131033/786

by Trond Ove on Wed Oct 8th, 2008 at 08:58:24 AM EST
[ Parent ]

Nationalisation is the solution | 72 comments (72 topical, 0 editorial, 0 hidden)

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