EU approves Sweden’s Carnegie package

Sweden on Tuesday received approval from the European Commission to move forward with its planned bailout of the troubled Carnegie investment bank.

The Commission ruled that the aid package would not distort competition.

Europe’s state aid watchdog said that a liquidity facility of €225 million ($307 million) granted to the bank in October, as it struggled with the financial crisis, was in line with EU rules for rescuing troubled banks.

“The liquidity assistance was necessary to avoid the failure of Carnegie Bank which would have entailed a real risk for the stability of the Swedish financial system,” Competition Commissioner Neelie Kroes said.

“The commission is satisfied that the emergency support is proportionate and does not give rise to undue distortions of competition,” she added.

After the liquidity line was extended to the bank, Sweden’s National Debt Office in November decided to take over Carnegie after authorities threatened to withdraw the firm’s operating licence for risky lending.


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”.