Glitnir (bank)

Glitnir was an Icelandic bank formed in 2007 through the merger of Íslandsbanki and FBA Holding. It was Iceland's third-largest bank prior to its collapse during the 2008 Icelandic financial crisis.

Glitnir positioned itself as a niche player in the Nordic investment banking market, focusing on the seafood, geothermal energy, and offshore supply vessel sectors. It had operations in Iceland, Norway, Sweden, and other international locations.

In September 2008, as the global financial crisis deepened, Glitnir faced severe liquidity problems. The Icelandic government nationalized the bank on September 29, 2008, acquiring a 75% stake for €600 million. This intervention proved insufficient to save the bank.

Shortly after nationalization, Glitnir was placed into receivership. Its assets were divided, with the domestic assets generally remaining in Iceland and the international assets becoming the subject of complex legal battles and restructuring. The collapse of Glitnir, along with Kaupthing and Landsbanki, brought Iceland's banking system to its knees and triggered a deep economic recession in the country.

The aftermath of Glitnir's failure involved investigations into the bank's management and lending practices, contributing to a long period of financial recovery and economic restructuring in Iceland. The event remains a significant case study in the risks of rapid financial expansion and the consequences of systemic banking failures.