Omaisuudenhoitoyhtiö Arsenal Oy ("Asset Management Corporation Arsenal") is a

bad bank A bad bank is a corporate structure which isolates illiquid and high risk assets (typically non-performing loans) held by a bank or a financial organisation, or perhaps a group of banks or financial organisations. A bank may accumulate a large por ...

-type corporation founded by the

Government of Finland sv, Finlands statsråd , border = , image = File:Finnish Government logo.png , image_size = 250 , caption = , date = , state = Republic of Finland , polity = , coun ...

for management of assets received as collateral from bad debt. Arsenal was founded after the

early 1990s recession The early 1990s recession describes the period of economic downturn affecting much of the Western world in the early 1990s. The impacts of the recession contributed in part to the 1992 U.S. presidential election victory of Bill Clinton over incu ...

in 1993 as a response to the nationalization of failed banks, mainly Säästöpankki and

STS Bank National Workers' Savings Bank (1971-1989) (In Finnish; ''Suomen Työväen Säästöpankki'', in Swedish; ''Arbetarsparbanken'') or STS-Bank (1989-1992) was a Finnish savings bank and commercial bank. Workers' savings banks were syndicalist, so ...

. (The contribution of the Säästöpankki group to the total damages to the government was 96%.) The defaulted debts led to a large amount of property being passed to the government as collateral, with concomitant bankruptcy court cases where the state had an interest. In 1994, Arsenal held 4.822 million euros of assets and had 12,684 customers. In 1999, the business managing the real estate collateral was spun off as Kapiteeli Oyj, which was bought by Sponda in 2006. (Sponda was also founded as a result of the same crisis around real estate and stocks from the collapsed SKOP Bank, but since 2012 has had no government ownership.) Most of the remaining collateral was sold between 2000 and 2003. In 2003, Arsenal voluntarily started liquidation proceedings. As of May 2013, Arsenal had 121 debtors and 28 court cases ongoing, and kept four employees. As of October 2017, Arsenal is still in liquidation and pursuing court cases. Attorney Kari Uoti accused Arsenal of deliberately undervaluing its assets, which would allow it to post significant apparent profits.http://blog.oikeus.pro/fi/blogi/:action/viewentry/entryid/726?PHPSESSID=2b6eede9cd4d73643b59e4fdd9a6eb77 The colloquial Finnish term for such a

, coined in the early 1990s, is ''roskapankki'' "junk bank", so called for holding

junk bond In finance, a high-yield bond (non-investment-grade bond, speculative-grade bond, or junk bond) is a bond that is rated below investment grade by credit rating agencies. These bonds have a higher risk of default or other adverse credit events, ...

References

{{DEFAULTSORT:Omaisuudenhoitoyhtio Arsenal Government-owned companies of Finland Bad banks