No run on deposits as HQ Bank reopens

No run on deposits as HQ Bank reopens
Carnegie CEO Frans Lindelöw and HQ Bank liquidator lawyer Björn Riese on Friday
Fears of widespread withdrawals at HQ Bank proved unfounded when it reopened its doors on Monday morning.

It was completely calm and quiet outside the bank’s office in central Stockholm apart from several members of the media, who were blocked from the entrance by a security guard.

Andreas Koch, director of information at Carnegie, which took over the ailing bank on Friday for 268 million kronor ($37.2 million), said the fears of anxious customers lining up outside HQ’s door have not yet materialised.

“We have started up the bank and it appears that it is calm and good,” he said.

“It is a stable situation and we have gotten all the activities started.”

According to Koch, Carnegie will present more details on Monday afternoon.

“We need a little some time to collect the material before we have so much more to communicate,” he said.

“However, the priority is that the bank has opened and the system and other functions work well. It feels like we are having a very successful start.”

On Friday, investment bank Carnegie took over the bank after the Financial Supervisory Authority (Finansinspektionen) withdrew HQ’s banking license and the Swedish Economic Crime Authority (Ekobrottsmyndigheten) decided to initiate a preliminary investigation on swindling and serious accounting fraud at the bank.

According to HQ Bank liquidator Björn Riese, the investments of clients are protected and as such, there is no reason to withdraw them.

About 400 HQ customers belong to Carnegie and wanted to empty their accounts, but they have since changed their minds.

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