The Banking and Strategy Initiative

Chillin' out till it needs to be funded

FT.com / Companies / Banks – Sweden faces first big bank collapse

“Carnegie has taken exceptional risks for a long time by lending large amounts to one individual client,” the FSA said on Monday. “Exposing operations to such great risks in this way is a violation of the law. Carnegie has also broken the law by not notifying Finansinspektionen regarding this individual credit granting.”

The FSA has been investigating Carnegie since a trading scandal last year, after which the regulator gave Carnegie a record fine and ordered the replacement of its entire board because of the failure of its internal controls.

Carnegie took a SKr1bn loan facility from the Swedish central bank last month after it suffered a liquidity crisis. It increased the facility to SKr5bn after the announcement of the FSA investigation sent its share price into freefall.

via FT.com / Companies / Banks – Sweden faces first big bank collapse

One comment on “FT.com / Companies / Banks – Sweden faces first big bank collapse

  1. Pingback: Sweden » semifinaltime!

Comments are closed.

Information

This entry was posted on November 11, 2008 by in Financial Markets, Global, Uncategorized and tagged , , .

Archives

%d bloggers like this: