The perils of banking

Employees of the Icelandic banks are seeking psychiatric help in larger numbers than before. The reasons are twofold, firstly they are dealing with a whole lot of financial mess every day and are taking in their customer’s concerns. Secondly the term “banker” has acquired such a negative meaning in the society that they are also taking in a lot of criticism that should be pointed towards the top management but trickles down to the people on the floor. This is reported by Frettabladid.  

A former work-mate described the situation. “Top management has been breathing down our necks about following the lending-rules to the book with every single million to individuals and businesses. Then you hear on the news that they were lending some of their friends and business partners billions with no regard to any lending-rules at all”. 

The whole banking sector is bound to be hit with job cuts again later this year when two or all three of the banks will be merged into one. Another bank-employee told me that his boss had called him into his office last summer and given him a friendly advice. He should change his home loan into one in foreign currency. He took the advice. Thirty million ISK became sixty overnight and the employee says that if he’ll lose his job then he will leave the country and never come back.

Bauger UK disquiet dates back to 2007

Baugur UK was put into administration earlier this month, after negotiations with its lenders failed.

But it has now emerged that auditors from KPMG were alerted to the fact that there was “material uncertainty which may cast significant doubt about [Baugur UK’s] ability to continue as a going concern” when considering the company’s accounts for the year ending December 2007.

The auditor’s statement should have been made public in October last year, but Baugur UK flouted the deadline for filing its accounts for the year ending December 2007.

From the Telegraph

New name – still the same

It’s not just businesses that are changing names and starting up again with a new identity. 

Former Glitnir CEO Larus Welding has reportedly started calling himself Larus W. Snorrason. 

I wonder whether I could escape my price-indexed slavery of a home loan if I did the same.

Coincidentally last week, Glitnir announced it would revert back to its old name, Islandsbanki (Bank of Iceland). CEO Birna Einarsdottir wryfully admitted that the Glitnir name had suffered. 

But with her still at the helm, the bank still suffers from something even Larus Welding with all his millions cannot change. New name, but still the same.