Denmark Doesn't Believe Too Big to Fail!

During the second week of February 2011, Amagerbanken, a 2.8 billion dollar bank in Denmark failed. This leaves many people asking, ?How do the Europeans close banks?? The financial bloggers are saying that this may be the most important bank you ever heard of! You are scratching your head asking ?why.?

Amagerbanken suffered losses due to the same reasons as the American banks; looses in real estate and especially commercial real estate. Bloomberg reports that investors and senior bondholders who have deposited over the insured Danish limit will loose over 41% of their investment. This means that the Danish have choose nth approach to make investors suffer instead of using the bailout techniques used by the TARP bill un the U.S or techniques used by the government to salvage AIG.

This has become the story of Henny Penny and Chicken Lickin?. Will the sky fall? Investors have predicted that without the bailout governments will be overthrown with civil war due to scarcity of commodities and staples like food and gasoline.

AMBA.CO is the tenth bank to fail in Denmark and the eight largest bank in the country. For the government to take over Amagerbanken it will cost 2.8 billion U.S. dollars. To insure the depositors other banking institutions will be required to pitch in along with the government. After watching Greece, Spain and Ireland we will all watch to see if the sky falls in Denmark.