Bankers to Pay $34 Million After Danish Court Finds Wrongdoing

(Bloomberg) -- The chief executive officer and seven board members of Amagerbanken A/S, a Danish lender that collapsed in 2011, were ordered to pay 225 million kroner ($34 million) in reparations.

The plaintiffs were found guilty of breaking laws in connection with the use of a credit facility linked to a property, the High Eastern Court in Copenhagen said in a ruling on Wednesday. The case was brought against the bank by the government’s bank-clean up unit, Financial Stability.

Amagerbanken became the first case in Europe in which senior creditors were bailed in, after the Nordic country adopted legislation to protect taxpayers. Its failure played a key role in Denmark’s dual financial and property crises, as all but the biggest Danish banks got locked out of wholesale funding markets.

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