November 10, 2008 / 2:27 PM / 10 years ago

Sweden takes over Carnegie after license revoked

STOCKHOLM, Nov 10 (Reuters) - Sweden’s National Debt Office said on Monday it had taken over struggling investment bank Carnegie CAR.ST after the Nordic country’s financial watchdog revoked the bank’s license.

The takeover was agreed with the Swedish central bank. The debt office granted a loan to Carnegie, replacing support from the Riksbank, which had provided loans of up to 5 billion crowns to help the bank overcome a liquidity crunch.

Carnegie’s shares were posted as collateral for the debt office loan.

“The decision has been taken in order to protect the financial stability and to preserve the value of the collateral,” the debt office said in a statement.

Sweden’s financial watchdog had been investigating the company over possible shortcomings in internal management and control, in part concerning the handling of credit exposures.

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