Comments on: Why is Swedbank doing a second rights issue? http://www.creditwritedowns.com/2009/08/why-is-swedbank-doing-a-second-rights-issue.html Finance, Economics and Markets Fri, 10 Feb 2012 00:37:00 +0000 hourly 1 By: aitrader http://www.creditwritedowns.com/2009/08/why-is-swedbank-doing-a-second-rights-issue.html#comment-56853 aitrader Tue, 18 Aug 2009 07:50:00 +0000 http://www.creditwritedowns.com/2009/08/why-is-swedbank-doing-a-second-rights-issue.html#comment-56853 Well the general consensus here in Sweden is that they are in deep deep doo-doo. The "analysts" say otherwise but the word on the street is that they will go under if they don't get the money. (And in my opinion, even if they do). They just asked their stockholders for ~1.5 billion USD a year ago or so. Now they need $2+ billion more? Although Swedbank is in the worst shape SE Bank and even Nordea are also in more or less the same boat. SE Bank is controlled by the Swedish ruling class Wallenberg family and I assume they will refill its coffers using cash from one of their many other concerns. Nordea was the old Swedish state-owned bank that was nationalized and bailed out back in the 1990's during the first Swedish banking crisis. It's the one the Swedes have been crowing about of late as a model for the US and other countries. It would be justly ironic if the Swedish government once again has to step in with their bad-bank/good-bank nationalization of the Nordea concern and doubly so if Bo Ljundgren's sticky fingers are in the pot this time as well. :-) Well the general consensus here in Sweden is that they are in deep deep doo-doo. The “analysts” say otherwise but the word on the street is that they will go under if they don’t get the money. (And in my opinion, even if they do). They just asked their stockholders for ~1.5 billion USD a year ago or so. Now they need $2+ billion more?

Although Swedbank is in the worst shape SE Bank and even Nordea are also in more or less the same boat. SE Bank is controlled by the Swedish ruling class Wallenberg family and I assume they will refill its coffers using cash from one of their many other concerns. Nordea was the old Swedish state-owned bank that was nationalized and bailed out back in the 1990′s during the first Swedish banking crisis. It’s the one the Swedes have been crowing about of late as a model for the US and other countries. It would be justly ironic if the Swedish government once again has to step in with their bad-bank/good-bank nationalization of the Nordea concern and doubly so if Bo Ljundgren’s sticky fingers are in the pot this time as well.

:-)

]]>