ALMC hf., formerly Straumur Investment Bank hf. (), is a regional

investment bank Investment is traditionally defined as the "commitment of resources into something expected to gain value over time". If an investment involves money, then it can be defined as a "commitment of money to receive more money later". From a broade ...

headquartered in

Reykjavík Reykjavík is the Capital city, capital and largest city in Iceland. It is located in southwestern Iceland on the southern shore of Faxaflói, the Faxaflói Bay. With a latitude of 64°08′ N, the city is List of northernmost items, the worl ...

Iceland Iceland is a Nordic countries, Nordic island country between the Atlantic Ocean, North Atlantic and Arctic Oceans, on the Mid-Atlantic Ridge between North America and Europe. It is culturally and politically linked with Europe and is the regi ...

. Founded in 1986 as ''Hlutabréfasjóðurinn'' and rebranded as Straumur in 2004, the bank initially survived the financial turmoil in late 2008 but was nationalised by The Financial Supervisory Authority of Iceland (FME) on 9 March 2009. Straumur was the last of Iceland's four biggest banks to remain independent during the

2008–2011 Icelandic financial crisis The Icelandic financial crisis was a major financial crisis, economic and political event in Iceland between 2008 and 2010. It involved the default (finance), default of all three of the country's major privately owned commercial banks in late 2 ...

. In the summer of 2010, the bank had been rebranded as ALMC and owned by its creditors. The majority of ALMC's owners are international investors and financial institutions and independent from any state involvement. Before the collapse of the Icelandic banking system in late 2008 the company was mainly owned by

Björgólfur Guðmundsson Björgólfur Guðmundsson (2 January 1941 – 2 February 2025) was an Icelandic businessman and chairman and owner of West Ham United. Björgólfur was Iceland's second businessman to be worth more than a billion dollars — his son, Björgólf ...

and his son

Björgólfur Thor Björgólfsson Björgólfur () may refer to: *Björgólfur Guðmundsson (1941–2025), Icelandic banker, shipping industry and football executive *Björgólfur Hideaki Takefusa (born 1980), Icelandic football forward of Japanese descent *Björgólfur Thor Björg� ...

. The latter was also the chairman of the board until the bank was temporarily closed by regulators in March 2009. At one point, Straumur was Iceland's largest pure investment bank and the sixth-largest company on the OMX Nordic Exchange in

. Straumur had an established presence in ten countries including the UK,

Denmark Denmark is a Nordic countries, Nordic country in Northern Europe. It is the metropole and most populous constituent of the Kingdom of Denmark,, . also known as the Danish Realm, a constitutionally unitary state that includes the Autonomous a ...

Sweden Sweden, formally the Kingdom of Sweden, is a Nordic countries, Nordic country located on the Scandinavian Peninsula in Northern Europe. It borders Norway to the west and north, and Finland to the east. At , Sweden is the largest Nordic count ...

Finland Finland, officially the Republic of Finland, is a Nordic country in Northern Europe. It borders Sweden to the northwest, Norway to the north, and Russia to the east, with the Gulf of Bothnia to the west and the Gulf of Finland to the south, ...

and the

Czech Republic The Czech Republic, also known as Czechia, and historically known as Bohemia, is a landlocked country in Central Europe. The country is bordered by Austria to the south, Germany to the west, Poland to the northeast, and Slovakia to the south ...

History

Straumur was founded in October 1986 as the Equity Fund (Hlutabréfasjóðurinn hf.) – an incentive for individuals in Iceland to invest in shares – and by 2001 it had become an investment company. Over the next few years, the fund grew rapidly and was merged with a number of other Icelandic investment funds. In 2004, the Icelandic Financial Supervisory Authority approved Straumur's application for a license to operate as a credit undertaking and three more sources of income – brokerage, debt finance and corporate finance – were added to create a more regular flow of income. In September 2005, Straumur merged with Burdarás, creating Iceland's largest investment bank. The newly merged organisation had a stronger balance sheet and shareholder base and was well positioned to start expanding its activities beyond Iceland. Straumur-Burdaras, now ALMC, was the largest investment bank in Iceland prior to the

2008 financial crisis The 2008 financial crisis, also known as the global financial crisis (GFC), was a major worldwide financial crisis centered in the United States. The causes of the 2008 crisis included excessive speculation on housing values by both homeowners ...

, with assets worth roughly EUR 7bn and around 500 employees. Although the bank initially survived the financial turmoil in late 2008, Financial Supervisory Authority of Iceland (FME) assumed control of Straumur on 9 March 2009. The new owners successfully completed its composition in summer 2010, first of the collapsed Icelandic banks, with over 99% of ALMC's creditors approving the composition. Along with the composition ALMC's creditors approved on founding Straumur Investment Bank. In summer 2011, Straumur became the first entity to get a banking license in Iceland post the financial turmoil in fall 2008.

Strategic acquisitions

July 2006 – Straumur acquired 50.01% share of Stamford Partners, a specialist investment banking firm with operations in London and Amsterdam. May 2007 – Straumur acquired 62% share in

eQ Bank eQ Bank Abp, founded in 1998, is a Finnish bank specialising in internet brokerage and asset management for retail clients. The parent company of eQ Bank Abp, eQ Corporation, was acquired by Straumur Investment Bank in 2007 for approx 260 millio ...

, a Finnish bank specialising in brokerage, asset management and corporate finance. June 2007 – Straumur acquired 50% share in WOOD & Company, the leading independent investment house in Central and Eastern Europe. July 2007 – As a result of a public tender offer, Straumur now controls over 95% of shares in eQ. June 2009 – Straumur acquired

West Ham United West Ham United Football Club is a professional Association football, football club based in Stratford, London, Stratford, East London, England. The club competes in the Premier League, the top tier of English football league system, English f ...

due to a large debt owed by Björgólfur Guðmundsson, who borrowed a large sum of money from the bank to purchase the club. January 2010 – Sold 50% of

to David Gold and David Sullivan for what was thought to be around £50,000,000 May 2010 – Sold a further 10% of

to current owners Gold and Sullivan August 2010 – Sold a further 5% of

to a group of investors including former owner Terry Brown

Icelandic credit crunch development

On 9 March 2009, the Icelandic Financial Supervisory Authority took control of Straumur. The FSA appointed a Resolution Committee which took over all activity of the board of directors. On 27 March, Straumur was closed. ALMC successfully completed its composition in summer 2010, first of the collapsed Icelandic banks, with over 99% of ALMC's creditors approving the composition.

Sources

* Official Website – http://www.straumur.com * Quarterly factsheet �
Straumur Q3 07 Factsheet
* Annual Report �
Straumur 2006 Annual Report

References

{{2008 economic crisis Banks disestablished in 2009 Banks established in 1989 Bank failures Banks of Iceland