The Swedish government announced Monday that Stockholm-based Carnegie Investment Bank was taken over by the Swedish National Debt Office.
The decision has been taken in order to protect the financial stability and to preserve the value of the collateral, the Swedish National Debt Office said in a statement.
The Debt Office added that its intention is to be a responsible owner of Carnegie, but it does not have the ambition to remain as owner for an extended period of time. It will sell the bank on commercial terms to buyers that obtain the Swedish Financial Supervisory Authority's approval.
Earlier on Monday, the Swedish Financial Supervisory Authority revoked the banking license of Carnegie due to what it said was illegal trading activities. After the Debt Office took the control it returned the license to the bank.
Carnegie, found in 1803, is engaged in stock-broking, equity analysis, equity trading, asset management and advice on corporate acquisitions in the Nordic region, and has some 1,100 employees.
Its shares lost more than half of their value at the end of October after the bank reported disappointing third-quarter earnings and was forced to seek 5 billion kronor (about 633 million U.S. dollars) in financial assistance from the Swedish central bank.
Source: Xinhua
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