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CARNEGIE

Authorities to investigate seven investment banks

The Swedish Financial Supervisory Authority, Finansinspektionen (FI), said it will investigate seven other Swedish financial services companies in the wake of the valuation scandal at Carnegie, the newspaper Dagens Industri reported.

“We have chosen to investigate those companies which have similar trading activities to Carnegie. We are talking about the valuation of complex securities. The same valuation problems Carnegie had, these other companies have as well,” Ingrid Bonde, head of FI said.

“We are also looking a bit extra at the connection between increased risk volumes and levels, and the bonus environment,” she added.

The banks and investment banks to be investigated are HQ Bank, Kaupthing,

Nordea, Erik Penser Fondkommission, SEB, Swedbank, and Öhmans.

FINANSINSPEKTIONEN

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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