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Sweden checking banks' controls after Carnegie

Fri Oct 5, 2007 7:12am EDT

Stocks

   

STOCKHOLM, Oct 5 (Reuters) - Sweden's Financial Services Authority (FSA) said on Friday it is running checks on financial services firms which undertake complex trading activities after recent high-profile problems at Carnegie CAR.ST.

The investigation covers SEB (SEBa.ST), Nordea (NDA.ST), Handelsbanken (SHBa.ST), Swedbank (SWEDa.ST), Kaupthing KAUP.IC, HQ Bank (HQ.ST), Erik Penser Fondkommission and Ohman, FSA spokeswoman Helena Ostman said.

Ostman said the investigation would focus on control systems related to valuing complex securities, but declined to give further information.

Carnegie was fined 50 million Swedish crowns ($7.7 million) after a trading scandal over reporting of inflated profits. The FSA also called for the investment bank's board to be removed.

"If we get an indication that there is a problem ... of course we have to investigate firms with the same sort of business and make sure they are OK," Ostman said. "This is a routine with us." She declined to comment on when the investigation would be completed.

((Editing by Quentin Bryar; Stockholm Newsroom, tel: +46-8-700 1017, e-mail: stockholm.newsroom@reuters.com))

($1=6.505 Swedish Crown) Keywords: SWEDEN BANKS/ =2 STOCKHOLM

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