Carnegie staff allowed to keep bonuses

An extraordinary general meeting of Swedish investment bank Carnegie has allowed staff to keep their bonuses for 2007, after objections by a number of shareholders were rejected.

A number of shareholders at the meeting in Stockholm on Thursday called for an adjournment, but they were outvoted.

The meeting was called following the revelation that the company’s trading result had been overestimated. Following the revelation, the company’s net profits were reduced by 227 million kronor for the period 2005-2007, of which 101 million referred to 2007. The company was forced to write off assets of 315 million kronor.

The write-off would in the normal course of events have led to employees losing part of their performance-related bonuses, but the company said it was important to pay the bonuses in full.

“Today’s approval of the Board’s decision benefits Carnegie’s customers, is necessary for retaining the best employees and thus correct for Carnegie’s shareholders,” said Carnegie chairman Christer Zetterberg.

The company’s management has waived its claim to bonuses.


Swedish real estate tycoon found dead

Swedish financier Maths O Sundqvist, whose risky deals led to the 2008 demise of the Carnegie investment bank, was found dead near an all-terrain vehicle in northern Sweden on Sunday morning.

Swedish real estate tycoon found dead

Police suspect Sundqvist was involved in an accident. When emergency services arrived, they found him lifeless and trapped under the vehicle.

Sundqvist launched his career by expanding and then selling his father’s bus company in the 1970s.

He later became part owner in several companies, including the Ländstidningen newspaper.

In 2007 Sundqvist was ranked one of Sweden’s richest men by the newspaper Veckans Affärer. He had at that time purchased blocks of shares primarily in Hexagon, Faberge, Industrivärden and SCA.

Sundqvist’s stock portfolio was worth 12 billion kronor ($1.8 billion) at the time. He also claimed to own properties worth a total of between 7 and 8 billion kronor.

In 2008, Sundqvist was at the centre of the collapse of the Carnegie investment bank, which fell into trouble following the eruption of the financial crisis in the autumn of 2008.

The Financial Supervision Authority (Finansinspektionen) revoked the bank’s licence because it had taken “exceptional risks” by lending large sums to an individual client – Maths O Sundqvist.

When forced to sell off the majority of his stocks, he suffered great financial losses.

At the time of his death, Sundqvist was 62-years-old.

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