Follow up on Sydbank A/S (CPH:SYDB)
Things get stranger and stranger!
Now Sydbank A/S (CPH:SYDB) has decided to honor the subordinate debt paid to Tonder Bank A/S (CPH:TNDR) in September this year (some 6 mio. USD from small investors). The question is:
WHY?
As earlier reported, it was more than strange that CEO Karen Frösig so magnanimously took over all the liabilities except equity of a bank where only sufficient impairments were forced on to them to declare bankruptcy. In a press announcement Sydbank states:
“On the basis of an external legal assessment, Sydbank finds that the information in the prospectus has been flawed seen in the light of the investigations made by the Bank Inspection and the Fund council. This flaw has had a significant influence on the investors’ evaluation of the bank.”
WHAT?
As CEO of Sydbank Karen Frösig is legally trained – WHY get external advice? Either the case is clear cut or it isn’t: Why is Sydbank liable? As to the normal banking solidarity of guaranteeing depositors in the event of a bankruptcy, but that normally specifically excepts subordinate debt.
Again: WHAT has that got to do with Sydbank A/S (CPH:SYDB) specifically?
Tønder Bank is NOT merged with Sydbank. Tonder Bank A/S (CPH:TNDR) is bankrupt and any such claims should be directed to the bankruptcy estate.
The President of the Banking Association Jørgen A. Horwitz had earlier stated:
”… in the light of what we know today it futher appears to be criticized that Tønder Bank sold subordinate loans in September for 6 mio. USD to (approx.) 460 customers.”
That is a direct encouragement for these investors to sue!
Chairman of the Board Carsten Dinsen Andersen of Tønder Bank states that he has done nothing illegal!
Again: WHAT has that got to do with Sydbank?
Why is Sydbank A/S (CPH:SYDB) so eager to avoid a trial?
Somebody obviously did something illegal. Tonder Bank A/S (CPH:TNDR) claims they didn’t – so credibly…
Then WHO did earn jail time? You don’t just take people’s money on the basis of a flawed prospectus. WHAT investment banker made that prospectus? WHERE is the fraud squad when you need it?
That Sydbank “decides” to make good the loss (or that loss) does not make the illegality null and void – especially if you were prompted to come clean. The shareholders will most certainly have issues with the board and the accountant cooking the books. But, that is another matter.
Is this merely a side issue in the course of a larger ongoing investigation – and of WHOM?
WHY is Sydbank A/S (CPH:SYDB) so anxious to keep this minor issue out of court?
HOW can the board of Sydbank A/S (CPH:SYDB) not take issues with management for so obviously squandering money?
Is it the old police proverb: “Squeeze a banker and you have a “rat”?”
