Carnegie announces new share issue

Beleaguered Swedish investment bank Carnegie announced on Monday it planned to issue 1.2 billion kronor ($153 million) in new shares to help keep the bank alive.

Carnegie announces new share issue

Carnegie Investment Bank had “presented a strong action programme” containing “a number of measures to ensure stability and guarantee the company’s financing,” it said in a statement.

“The programme consists of a new issue in two parts of about 1.2 billion kronor: a directed issue of about 400 million kronor to a new major shareholder in one part and a rights issue of about 775 million kronor in another part,” it said.

The news came as Sweden’s Financial Supervisory Authority (Finansinspektionen – FI) prepared to publish the results of a probe into Carnegie’s internal management and control and possible sanctions against the company, including perhaps withdrawing its licences.

The share-issue plan was “among other things … conditional on Carnegie keeping its licences,” the investment bank said, adding that it would provide more information before trading starts on Tuesday.

Last month, the Swedish central bank said it would lend Carnegie one billion kronor to resolve its “temporary liquidity problems.”

Carnegie, which conducts stockbroking, equity analysis and trading and asset management in eight countries, has been heavily criticized in recent years.

A year ago, Finansinspektionen for the first time ever imposed the maximum Swedish fine of 50 million kronor on the investment bank and sacked its chief executive and board after a trading scandal.

The firm has also been criticized for a lofty bonus system said to have encouraged excessive risk taking.


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”.