Top politician pays off son’s cocaine debt
The New Nordic Diet: eat well and lose weight
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Xmas Crazy Cabaret’s high jinks in the jungle
G2
11 - 17 November 2011 | Vol 14 Issue 45
Denmark’s only English-language newspaper | cphpost.dk
PETER STANNERS
NEWS
Greenland gets its investigation into CIA flights after all, and becomes a popular spot for foreign investors
3, 6
Jens Bond, 007 Need a job? The foreign intelligence service is looking for a few good spies
NEWS | 3
COMMUNITY
The grey time is upon us
How the ‘happiest people on Earth’ survive the dark, depressing winter
Meet the founder of a children’s art workshop where creativity is encouraged, nurtured and championed
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No more taxpayer bailouts for banks JENNIFER BULEY
Beyonce’s calling 18-year-old Aarhus musician works with one of the music world’s biggest names to remix ‘Love on Top’
CULTURE | 18
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New finance minister says nation’s banks are better off than most and need to take care of themselves
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FTER a series of financial support packages introduced by the last government to prop up the banking industry, the new Socialdemokraterne-Radikale-Socialistisk Folkeparti (SRSF) government is signalling that it’s time for the banking industry to pull itself up by the bootstraps. “Danish banks are in better shape than their colleagues in other countries,” the new finance minister Bjarne Corydon (S) told Bloomberg news last week on Saturday. “We have had four bank packages and now the sector is consolidating”.
Between October 2008 and August taxpayers will not be made to pay for 2011, the former Venstre-Konservative more bank bailouts. Last month Sohn (VK) government introduced Bank- said he was working on a bill that would pakke 1-4, a series of state-supported introduce penalties for banks that sys‘welfare’ deals for the banking industry. tematically underestimate the riskiness The final package, Bankpakke 4, was a of their loans. In July, Standard & Poors warned ‘consolidation bill’ that allowed solvent banks to buy up the healthy assets of that as many as 15 Danish banks could failed banks, while letting the govern- fail before the economic crisis ends – an end that increasingly appears to be rement absorb the bad debts. Bankpakke 4 was passed just two ceding into the distance. Analysts from the European Cenweeks before the September election. One month later, the regional Max tral Bank (ECB) announced last week Bank nearly went bankrupt. Bankpakke that the likelihood of another Europe4 enabled a consolidation deal at an es- an recession had risen from under ten timated cost to taxpayers of four billion percent a few months ago to over 50 kroner; Sparekassen Sjælland, another percent today in light of the Eurozone regional bank, got Max Bank’s good crisis and lacklustre business returns. The Financial Stability Company’s assets, while the state-owned Financial Stability Company ate up the bad ones. own chief executive indicated that Denhad as many as 75 too many reThe business and development min- amark Organise personal meeting ister Ole Sohn (SF) has promised that gional banks, many with risky farm and
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real estate portfolios. To make matters worse, last month Fitch threatened to lower its AAA credit rating on Danske Bank, the nation’s largest, citing, among other things, that household debt had risen, while real estate prices had continued to fall. Despite the grim economic indicators, the new government is not indicating the same eagerness as its predecessors to prop up the banking sector. Instead, it has emphasised increased spending on social welfare, education and public works in its budget for 2012-2013. The budget proposal, which was released last week, sets aside over 18 billion kroner over two years for infrastructure improvements as part of a plan to create jobs and stimulate growth. Corydon told Bloomberg the public works investments were “absolutely necessary” to get the economy moving again.
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