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Realistbear

Swedish Bank Collapses But It Is Contained

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http://uk.finance.yahoo.com/news/sweden-s-hq-bank-announces-involuntary-liquidation-afp-409c3a782558.html?x=0

8:02, Monday 30 August 2010
Swedish investment bank HQ Bank said Monday it was going into involuntary liquidation after the country's financial supervisory authority revoked all its licences

You would have thought the Scandies were removed from the EU banking collapse? It does not appear to be contained to me. :o

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Must be contained by some cordoned off bund or something!

Only allowed in with hi-viz laptop! :blink:

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Out of interest was this bank part of the Swedish bank rescue in the 90s?

Been a while since we had a bank failure.

http://www.thelocal.se/28640/20100829/

FI said HQ Bank was in breach of Swedish accounting and capital requirement regulations as its financial position had been reported inaccurately, with a correct valuation indicating that the bank has been undercapitalised since 2008.

"A bank can not behave like this. The fact that they took action when they were caught does not mean there are extenuating circumstances. We see no other option but to revoke the licence," said FI's director general Martin Andersson.

The decision would not have an impact on financial stability, FI said. The authority added that the bank's managing director and its board of directors were not sufficiently knowledgeable about the risks attached to their trading operations.

"FI's decision entails that HQ Bank may no longer conduct banking and securities business. Furthermore, the bank's licences to conduct pensions savings business and be a registered fund manager are no longer valid," said FI in a statement released on Saturday.

The chairman of the bank's board, Mikael Nachemson, reacted with shock to news of the financial regulator's decision.

"It's a sad day. I thought, a bit naively perhaps, that the measures we had taken over the last three months would prove sufficient."

HQ Bank is now trying to find a financial actor willing to merge with the crisis-ridden bank. But time is running out, with FI primed to submit a liquidation application to the district court unless a solution can be found by Monday.

Mikael Nachemson was keen to stress that the bank remained solvent and remained in a position to pay back any money invested by customers.

"We're doing everything we can to ensure our customers aren't affected. Shares and options are also separate from the bank's own resources and will not be affected by a wind-up," he said.

FI's Martin Andersson echoed the bank's message to its customers.

"This is not an insolvent bank. The aim is for all customers to get their money bank, which is why the bank ought to be liquidated in an orderly manner."

So it appears that they have resorted to a bit of dodgy accounting to say they are well capitalised now they've been found out it was done because they weren't insolvent.

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http://www.earthtimes.org/articles/news/341633,bank-faces-liquidation-deficiencies.html

The financial watchdog on Saturday said it would revoke the bank's licence, citing that HQ Bank "demonstrated serious deficiencies in its trading operations. The bank has taken risks that were so large as to compromise its survival."

So unwinding these positions is going to be done easily and safely then?

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http://uk.finance.ya...782558.html?x=0

8:02, Monday 30 August 2010
Swedish investment bank HQ Bank said Monday it was going into involuntary liquidation after the country's financial supervisory authority revoked all its licences

You would have thought the Scandies were removed from the EU banking collapse? It does not appear to be contained to me. :o

It's all been kept hush, hush!

Swedish banks are massively over_lent to countries with collapsing houseprices/defaulting borrowers, Estonia, Poland, Latvia etc

Loads of the Swedes other banks are in trouble & bricking themselves if things get any worse.

Edited by erranta

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  • 140 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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