In spite of its strong capital position and the support of funding
banks Straumur Burdaras Investment bank hf. (Straumur) believes that
its liquidity position is no longer strong enough to sustain its
activities.
The Icelandic Financial Supervisory Authority (IFSA) has therefore
decided to assume the powers of a meeting of the shareholders of
Straumur and immediately suspend the Board in its entirety. Further,
the IFSA hereby appoints a Resolution Committee, which will take over
all authority of the Board of Directors.
As a result of this Straumur is closed.
According to a statement from the government of Iceland dated 6
October 2008, all deposits of Icelandic commercial banks are fully
secured. Straumur is a licensed commercial bank and is a member of The
Depositors' and Investors' Guarantee Fund.
Further to this, William Fall, CEO of Straumur, has tendered his resignation for the company, effective immediately.
You can see the FSA decsion here: The FME decision