Can you prevent a bank escape or refuse to accept its new headquarters? It’s hard for us to imagine. But at this very moment we are witnessing rejection of full responsibility for the bank’s economy beyond Sweden’s borders. Does Finland really want to host one of the leaders?
Nordea is one of those international banking institutions that we call “too big to fail”. This means that bank can not go bankrupt. Bank bankruptcy would cause financial system to collapse, which on the other hand would mean full state responsibility in the event of a collapse.
The last crisis of the bank cost Sweden 65 billion crowns. This allowed the bank to take off from the start line again.
About Nordea is getting louder as a result of the decision to increase banks’ deposits into a reserve dedicated to rescue financing companies struggling with problems. This change shattered the bitterness of the bitterness and irritated the giant to such an extent that Nordea threatened to relocate headquarters of the bank.
Most likely, as a result of random events, it was Finland, which this “honour” can cost – approximately $ 100 billion in a few years.
Let us remember that bank still today can be a profiting machine to wake up tomorrow as a bankrupt.
The bank’s profits are now 40 billion Euro a year. However, most of this money comes from selling real estate in Sweden. The rest is the profits generated by financial games, derivatives, foreign exchange and funds. But everything comes down to one hole, and each loan can cost us dearly. Us or the Scandinavians themselves.
The bank itself does nothing productive.
In principle, Nordea could be replaced by Riksbank.
It would be cheaper, fairer and less risky for taxpayers. But that would be a huge challenge for the biggest economic powerhouse owning all private banks operating in Sweden.
It seems that the subject is exhausted at this moment. The further consequences of Nordea’s management decisions will be known after 30 May, although it is clear that Finland will celebrate the Pyrrhic victory that day.
