Swedish private investment bank HQ Bank faced forced liquidation on Monday after its operating license was revoked and efforts to find a new owner proved unsuccessful.
The Swedish Financial Supervisory Authority (FI) requested the court to appoint a liquidator for the bank, which has approximately 20,000 portfolio accounts and manages assets worth around 60 billion kronor ($8.1 billion). The agency announced on Saturday that it would revoke the bank’s operating license due to “serious problems in trading operations.” “The bank had taken risks that were so large that they jeopardized its survival,” the Swedish regulator stated. The decision also noted that HQ Bank had “long overvalued its trading portfolio.” Since December 2008, the bank’s capital level has not been sufficiently high, violating Swedish accounting and capital adequacy regulations,” the FI statement emphasized. The decision to liquidate will not jeopardize financial stability, regulators concluded. HQ Bank announced on Monday that efforts to find a new owner over the weekend had proven unsuccessful. (H)
