Sweden seizes Carnegie in first bank bail-out

[Doctor Cynic]

Source: Telegraph

Mats Odell, the financial markets minister, said the state had opted to save Carnegie by providing a 5bn Kronor (£450m) state loan rather than let it go bankrupt in order prevent a fire-sale of assets and to shore up the financial system at a delicate moment.

"Carnegie is important: there could be significant problems for households and companies if we jeopardise the stability of the financial system," he said.

It is the first Swedish bank to require a bail-out since the credit crisis began, but there are mounting concerns over the health of Swedbank, SEB, and other lenders with heavy exposure to the Baltic states. Swedish banks have lent the equivalent of 25pc of the country's GDP to Eastern Europe.

Read more: http://www.telegraph.co.uk/news/worldnews/europe/sweden/3418965/Sweden-seizes-Carnegie-in-first-bank-bail-out.html

[yava]

1. Way to Go :)

Bingo,
Bravo Swedes.
Tell them that:
Whan business men fail their jobs and come for aide from tax-payer, they need to sign some papers :)

[muriel_volestrangler]

2. They're not messing about

The debt office said it had revoked Carnegie's trading licence and ousted the entire board,

"We break them on the wheel," said Gabriel Stein, a Swedish economist at Lombard Street Research. "If we put up taxpayers money, justice must be done: shareholders and management lose. It is not like the half-way house in Britain."
...
It was fined last year for inflating profits. The last straw was an illegal loan of billion kronor loan (£90m) to a single client, and withholding the information. "The bank has seriously mishandled itself, " said the financial inspectorate.

[Buns_of_Fire]

3. They seem to understand capitalism better than the capitalists.

"If we put up taxpayers money, justice must be done: shareholders and management lose. It is not like the half-way house in Britain."

Or like the "bend-over-again" house in the United States, where we not only do NOT allow incompetent management to fail, we allow our tax dollars to be used to REWARD them.

[FarLeftRage]

4. We should adopt and practice

The Swedes' method... it can help us in a very huge way.