Teathers falls victim to the Icelandic chill

By Daily Mail Reporter
Updated: 04:34 EDT, 10 March 2009

One of the City's longest-established stockbroking firms has fallen victim to the Icelandic banking system.

Trading worries: The stock exchange is reviewing Teathers'

Teathers - the old Teather & Greenwood, which started life in 1888 - yesterday stopped trading after its Iceland-based parent was forced to close down by the country's financial regulator.

The move is likely to mean that 33 companies listed on London's Alternative Investment Market (AIM) which had Teathers as their officially-recognised adviser will now have to find a new firm to represent them.

The Stock Exchange normally insists that a company listed on AIM must have a nominated adviser if its shares are to continue to be traded.

But for the time being, it is allowing trading to continue in shares of the 33 companies involved - which include names such as Cambrian Mining, Coffee Republic, troubled kitchen-maker Smallbone and luxury interiors firm Walker Greenbank.

The London Stock Exchange said it is 'reviewing' Teathers' status as an adviser. Teathers was bought by Icelandic bank Landsbanki in 2006. But as Landsbanki headed towards collapse last autumn, the London broker - which employs around 80 people - was taken over by investment bank Straumur-Burdaras.

Over the weekend, it became clear that Straumur was running out of cash, and Icelandic authorities moved in, putting the bank into administration. Straumur was the only remaining Icelandic bank not to have fallen under state control.

On top of Teathers employees, about 150 people work for Straumur in London. Straumur also has a half-share in Stamford Partners, a boutique investment bank specialising in deals in the food industry. Stamford will not be affected by Straumur's failure.