The Resolution Committee/Interim Board:

On March 21st 2009, the Financial Supervisory Authority assumed the powers of a shareholders’ meeting of SPRON, dismissed the Board and appointed a Resolution Committee. The FSA also assigned New Kaupthing Bank the depository obligations of SPRON, see here. Under Act no. 44/2009 that amended Act no. 161/2002 on Financial institutions, the Resolution Committee became an Interim Board, which had the same obligations as a Resolution Committee.

The Winding-Up Board

In June of 2009, the Interim Board‘s designated three month working period was up, in accordance with Art. 100 a. of the Financial Institutions Act No. 161/2002. On June 23rd, Reykjavik District Court accepted the Interim Board‘s request to appoint a Winding-Up Board to SPRON. The Winding-Up Board‘s primary function is to protect the interests of SPRON‘s creditors, and to oversee the lodging of claims in accordance with Art. 102, par 2, of the Financial Institutions Act No. 161/2002.

About SPRON

Reykjavik Savings Bank (SPRON) was founded on January 23rd 1932, and opened on April 28th that same year with two employees at Hverfisgata 21, Reykjavik. Later it moved to Hverfisgata 26 and stayed there until 1968, when it moved to Skólavörðustígur 11. Those were the company‘s headquarters until they moved to Ármúli 13a in 2002.

For a long time, the savings bank only catered to conventional savings and loans, as designated by law, and the business was run from a single location. The main emphasis was on loans for residential properties and the bank‘s financing was mostly derived from deposits. In 1982 SPRON received official permission to open a branch, and in September 1983 the first branch was opened in at Austurströnd 3 in Seltjarnarnes. A year later, the bank merged with another savings bank, Pundið, and later opened a second branch at Hátún 2b. In 1985 a change was made to the legislation governing Icelandic savings banks, which allowed them a greater scope of business. In 2009 SPRON had six branches, as well as quite a few subsidiaries, after closing some of the branches in a restructuring of the bank.

As well as conventional branch operations, SPRON had some subsidiaries; SPRON Securities, which held the overall management of securities; Rekstrarfélag SPRON, which managed the mutual funds; Steinsnes ltd., which managed investments on a smaller scale; SPRON kort, which specialized in credit/debit cards and innovative solutions for the card industry. Curron ltd. made software for credit/debit cards. SPRON bought Frjalsi Investment Bank ltd. in 2002, which specialized in housing loans for individuals and companies in the construction industry. SPRON bought SPRON Factoring in 2005, which administers factoring. Netbankinn Internet Bank, or nb.is, managed financial services online.

SPRON was a large entity in the partnership of savings banks, and was a party to Teris (the computer centre of the savings banks), Icebank (a joint venture of the savings banks, which provided them with a range of services), the Insurance fund for Savings Banks (whose objective is to ensure the interests of customers of savings banks) and was a member of the Icelandic Savings Bank Association.

At first, SPRON was a conventional warrant fund, but later was changed to an initial capitalization fund. A change in legislation in 2001 allowed savings banks to change their legal form to limited companies, and at an annual general meeting in 2002, the change was authorized by the board. The plans fell through because of legal uncertainty that surfaced after an attempted takeover. In 2007 SPRON was changed to a limited company and registered in the OMX Nordic Stock Exchange on October 23rd in 2007.

In 2008 a global financial crisis led to a liquidity crisis at SPRON. Attempts to rectify the situation were unsuccessful, so the Financial Supervisory Authority decided to assume the powers of a shareholder‘s meeting, dismiss the Board and appoint a Resolution Committee, on Saturday March 21st, 2009. The following people were appointed to the committee:

Hlynur Jónsson, Attorney to the District Court  (Chairman)
Davíð Arnar Einarsson, a State Authorised Public Accountant
Feldís Lilja Óskarsdóttir, Attorney to the District Court 
Guðrún Torfhildur Gísladóttir, a State Authorised Public Accountant
Jóhann Pétursson, Attorney to the District Court 

On June 23rd of 2009, SPRON was appointed a Winding-Up Board. The members of the board are Hlynur Jónsson, Attorney to the District Court  (Chairman), Jóhann Pétursson, Attorney to the District Court, and Hildur Sólveig Pétursdóttir, Attorney to the Supreme Court.