Sweden’s Biggest Pension Fund Loses $2 Billion in US Bank Crises
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Sweden’s largest pension fund, Alecta, is facing losses of almost $2 billion as a result of a failed investment strategy that made it one of the biggest shareholders in two collapsed US banks and another that is embroiled in the ongoing banking crisis.
The scale of the losses has become clearer since the private pension group sold all of its First Republic Bank stake at a loss of 7.5 billion kronor ($728 million), according to Chief Executive Officer Magnus Billing. That adds to anticipated losses of 8.9 billion kronor and 3.2 billion kronor in Silicon Valley Bank and Signature Bank, respectively.