Cracked bank’s investors to sue over lack of information

A group of investors in the collapsed Amagerbanken is seeking 898 million kroner in compensation from the state after it has been revealed that financial services authority Finanstilsynet had been alerted to the bank’s problems just months before going bankrupt.

The investors claim Finanstilsynet had been informed in writing by Finansiel Stablitiet, a state company responsible for liquidating ailing banks, that Amagerbanken would need to increase the amount of its write downs, yet Finanstilsynet did not inform them of the concern.

The investors argue that had they been aware of the problem, they could have taken steps to limit their loss.