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Two Scandinavian banks this week revealed a drop in profits, less than a month after the Danish government proposed a bailout programme.
MILLY BERNICE explores the controversy.
Two Scandinavian banks this week revealed a drop in profits, less than a month after the Danish government proposed a bailout programme. According to Swedish reports, Swedbank's last quarter of 2008 was over 40% less profitable than 2007, whilst Handelsbanken took a drop of almost thirty percent in profits. A week earlier Nordea, which provides lending throughout Scandinavia, saw a reduction in profits of over 200 million Euros.
The losses come a month after the Danish government proposed funding a bailout for affected banks in the area. Though 75 billion kroner has been earmarked for the purpose, it is predicted that less than half of this money will be used. Calls from the Danish public to reduce taxes and halt the bailout have culminated in a 5000 member Facebook group comparing the bailout to throwing money out of the window.