Straumur Investment Bank

Straumur Investment Bank

Straumur Investment Bank hf. (Icelandic: Straumur Fjárfestingabanki, usually referred to simply as Straumur) was founded a regional investment bank headquartered in Reykjavík, Iceland. Although the bank initially survived the financial turmoil in late 2008, The Financial Supervisory Authority of Iceland (FME) assumed control of Straumur on 9 March 2009.

ALMC, which is owned by the creditors, successfully completed its composition in summer 2010, first of the collapsed Icelandic banks, with over 99% of ALMC’s creditors approving the composition. Majority of ALMC’s owners are international investors and financial institutions and independent from any state involvement.

Before the collapse of the Icelandic banking system in late 2008 the company was mainly owned by Björgólfur Guðmundsson and his son Björgólfur Thor Björgólfsson. The latter was also the chairman of the board until the bank was temporarily closed by regulators in March 2009.

At one point, Straumur was Iceland's largest pure investment bank and the sixth-largest company on the OMX Nordic Exchange in Iceland. Straumur had an established presence in ten countries including the UK, Denmark, Sweden, Finland and the Czech Republic.

On 9 March 2009, Straumur was nationalised by Icelandic authorities; according to Straumur, its "liquidity position was no longer strong enough to sustain activities". Straumur was the last of Iceland's four biggest banks to remain independent, during the financial crisis. On 27 March 2009, Staumur was closed with the CEO, William Fall, tendering his resignation.

Today Straumur is the only investment bank in Iceland, as the competitors are either commercial banks or do not hold a banking license. The bank offers a comprehensive range of investment banking services, including brokerage services and corporate finance advice. Straumur is supervised by the Icelandic Financial Supervisory Authority. As a licensed investment bank Straumur is authorized to provide all regular banking services (including custody services) apart from acceptance of retail deposits. It is also required to comply with all regulations concerning the financial market, including implementation of internal policies and procedures to ensure best practice and secure interests of Straumur's clients. CAD ratio of Straumur was 58% at 30, September 2011. Total assets were 36,6 €m.