Business News
Swedish HQ bank closes branch offices
Aug 31, 2010, 10:18 GMT
Stockholm - Swedish private investment bank HQ closed its branch offices and limited customers' possibilities to withdraw funds Tuesday, one day after the bank went into liquidation.
Bjoern Riese, appointed as liquidator, said the services had been limited in order to avoid further pressure on the liquidity of the bank, which holds about 20,000 portfolio accounts and a final market value of 1.5 billion kronor (ca. 200 million US dollar).
On Saturday, the Swedish Financial Supervisory Authority (FI) had revoked the bank's licence due to severe undercapitalization and breach of banking rules.
The HQ Bank had 'demonstrated serious deficiencies in its trading operations. The bank has taken risks that were so large as to compromise its survival.'
The bank's share prices fell by 80 per cent in the wake of the announcement.
Riese said he was working to find a new owner for the bank.
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