Iceland has suffered to a great extend in the financial crisis today, and it is not over for them yet. Last week the Icelandic Financial Supervisory Authority took over the national banks Kaupthing, Glitnir and Landesbanki. The fact that Kaupting also has operations in other countries such as Sweden and Finland makes the situation even more complex.
Just after the Icelandic bailout, The Swedish Central bank ”Riksbanken” decided to lend 5 billion Kronor to Kaupthing Bank in Sweden (app. 525 million Euro). According to the Riksbanken, this loan can be used either to pay depositor with accounts in Iceland or Sweden, or to depositors and other creditors in Kaupting Bank Sweden. 1.7 billion Swedish citizens have got shares in Kaupthing Edge, and according to the Riksbank, this solution will prevent Swedish investors from losing any of their capital, this can even make them till winners of this crisis. (http://www.riksbanken.se/) And the Riksbanken will not lose either, the Swedish subsidiary of Kaupthing will be sold.
This quick bailout made by the Swedish Central Bank show that the Swedish government is really taking responsibility in the financial crisis. Furthermore, I see no need for bailouts like this one to Swedish banks in the near future; they have a considerably stronger economy than many other banks is other countries, and it looks like the Swedish Financial Supervisory Authority has control over the situation.
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