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BANK

Carnegie to reduce Stockholm operations

Swedish investment bank Carnegie announced plans on Tuesday to trim staff and operations in hopes of achieving a 10 percent reduction in costs.

The bank said it would axe around 40 staff in Stockholm and would phase out trading in currency and foreign equities.

It said the costs of implementing the package would be around 40 million kronor ($5.85 million).

“These activities haven’t had the earnings we’d hoped for. They also tie up quite a few of our resources which makes the move an obvious step,” said Carnegie CEO Mikael Ericson to the Dagens Industri newspaper.

A further review which includes operations outside Sweden is underway, the firm said.

It added the aim was to cut costs by around 10 percent, adjusted for acquisitions.

BANK

Police to investigate Nordea bank over money laundering

Danish police will investigate the Swedish bank Nordea after a year-long probe by regulators into money laundering led to "criticism" of its procedures, the bank said Friday.

Police to investigate Nordea bank over money laundering
Photo: Marcus Ericsson / TT

Detectives will examine how money laundering rules were followed at the bank's Danish subsidiary and could result in “sanctions”, Nordea said in a statement.

“We realize that we initially underestimated the complexity and the time it takes to change our procedures,” said Nordea chief executive Casper von Koskull.

The bank added that 850 Nordea employees are currently involved in the fight against money laundering which the bank plans to increase to 1,150 by the end of the year.

In May 2015 the bank was fined 50 million kronor (€5.4 million euros) – the maximum possible – by Swedish regulators who accused Nordea of “not following money laundering rules for several years” and failing to “evaluate the risks of (doing business with) certain clients”.