17/03/2023at 07:42

Alecta starts internal probe after USD 2bn banks bet

The board of Sweden’s biggest pension fund, Alecta, has instructed its CEO to immediately initiate an investigation into its USD 2.1bn bet on three niche banks tied to the collapse of Silicon Valley Bank.

Magnus Biling, Alecta's CEO. | Photo: PR/ Alecta, Evelina Carborn

By Anton Wilen / Bloomberg

Alecta’s CEO Magnus Billing called the investments “a big failure” after admitting the fund would probably write off its entire holdings in SVB and Signature Bank at a cost of about USD 1.1bn. That figure looks set to rise further given the pension group also invested USD 915m in troubled lender First Republic Bank.

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