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BANK

Swedish state takes over Carnegie

Sweden’s Financial Supervisory Authority announced on Monday afternoon that it was revoking the licence of the embattled Carnegie investment bank and that the bank was to be taken over by the National Debt Office.

Swedish state takes over Carnegie

According to Finansinspektionen’s investigation, Carnegie broke Sweden’s investment fund management laws and would have its licence withdrawn as a result.

Meanwhile, the National Debt Office (Riksgälden) informed Finansinspektionen that it intends to take over ownership of Carnegie.

“In the current climate on the financial markets it is good that the Debt Office is now giving support to Carnegie and is prepared to go in as owner to safeguard financial stability,” said Deputy Governor Svante Öberg in a statement.

If the Debt Office carries out its takeover plans, Finansinspektionen said it will reconsider the sanctions.

“Finansinspektionen finds, however, that the National Debt Office’s takeover makes it possible to find a long-term solution for Carnegie and therefore sees that it is possible to change the revocation to a warning,” said Finansinspektionen in a statement.

The Debt Office’s takeover can, according to Finansinspektionen, be seen as a liquidation with the option of a sale carried out in an orderly fashion and with secure financing.

The Debt Office’s involvement follows guidelines laid out in Sweden’s recent financial stability package giving the agency primary responsibility for administering assistance to the country’s troubled banks.

Specifically, the Debt Office has offered Carnegie a loan of up to 5 billion kronor ($646 million) which replaces the liquidity assistance previously extended to Carnegie by the Riksbank.

Finansinspektionen has been looking into failings in Carnegie’s internal management and controls, as well as the bank’s large exposure to one individual customer, who according to media reports is finance mogul Maths O. Sundqvist.

According to the bank’s quarterly report, Carnegie’s dealings with Sundqvist may have led to 1 billion kronor ($129 million) in credit losses.

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”.