OSLO/STOCKHOLM, April 11 (Reuters) – Swedish pension fund Alecta on Tuesday fired its CEO Magnus Billing with immediate effect following the recent announcement of large losses from investments in several U.S. banks.
Alecta, Sweden’s largest pension fund provider, last month said it had lost 19.6 billion Swedish crowns ($1.87 billion) from its shareholdings in First Republic Bank (FRC.N), Silicon Valley Bank and Signature Bank.
“The losses have severely damaged the trust in Alecta’s asset management,” the company said in a statement.
“The board has concluded that Alecta needs new leadership in order to implement the necessary changes within the asset management and re-establish trust.”
Alecta’s management has said the positions in the three banks had been taken within the established framework for investments and the board said on Tuesday it shared that assessment. Alecta also said the losses will have no discernable impact on customers savings.
The Swedish Financial Supervisory Authority has played down fears of a banking crisis in Sweden, saying Swedish banks are well-capitalised.
SVB was the largest bank since the 2008 financial crisis to collapse when California regulators closed it on March 10, sparking market disruption and heightened stress across the banking sector.
The turmoil soon spread to Europe where Credit Suisse, already battered for years by crisis and losses, was forced by regulators to merge with UBS to prevent wider contagion.
Alecta said Deputy CEO Katarina Thorslund will lead the company while the search for a new chief executive goes on.
The pension provider last week announced the replacement of its head of stock market asset management.
($1 = 10.4944 Swedish crowns)
Reporting by Terje Solsvik and Johan Ahlander, editing by Gwladys Fouche and Niklas Pollard
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