From Bank Package to Exit Package

Henrik Bjerre-Nielsen, CEO, Finansiel Stabilitet A/S, Denmark

When the international financial crisis hit Denmark in the autumn of 2008, a majority of the political parties in the Danish Parliament passed the Bank Package , involving a general two-year government guarantee for payment of all unsecured, senior claims against (almost) all Danish banks. The total guarantee commitments were approximately two times Denmark's GDP . In the beginning of 2009, the same parties adopted the Credit Package , under which Danish banks could apply for a government-funded injection of hybrid core capital and an individual government guarantee for their new unsecured, senior debt with a maturity of up to three years. Finally, the parties adopted the Exit Package in the spring of 2010, which replaced the Bank Package when it expired at the end of September 2010.

Henrik Bjerre-Nielsen’s previous positions include: Director General of the Danish Financial Supervisory Authority (1996-2008), Deputy Managing Director of The Industrialisation Fund for Developing Countries (IFU) and The Investment Fund for Central and Eastern Europe (IØ), and Department Manager of the Danish Confederation of Trade Unions (the LO). Henrik Bjerre-Nielsen’s previous directorships include the ATP (The Labour Market Supplementary Pension Fund (1986-94), The Employees’ Capital Pension Fund (LD) (1986-94) and Dansk Udviklingsfinansiering A/S (1988-94). Henrik Bjerre-Nielsen received his MSc (Economics) in 1980.

The Financial Stability Company (in Danish: Finansiel Stabilitet A/S), is state-owned through the Danish Ministry of Economic and Business Affairs. The group's activities are gathered in four subsidiary companies of the parent company, i.e. (i) a financing company which winds up the majority of the group's loans and guarantees, (ii) a bank (the group's only bank) which winds up the group's remaining banking activities, (iii) a mortgage deed company which, among other things, winds up all the group's mortgage deeds, and (iv) a property company which, among other things, develops and prepares for sale the properties that the group has acquired. The group currently has app. 360 employees .