Sweden's Alecta board chair resigns after loss-making investments (updated)

First Republic Bank

02/10/2023 14:16

(Adds detail on Alecta's investments and Swedish FSA probes in
paragraphs 1, 4-7)
       COPENHAGEN, Oct 2 (Reuters) - 
    The chair of the board of Alecta, Sweden's largest pension
fund provider, resigned on Monday with immediate effect
following months of questions over the company's loss-making
investments in U.S. banks and a Swedish real estate group.
  
    Alecta, the subject of two ongoing probes by the Swedish
Financial Supervisory Authority (FSA) over risk taking, said in
a statement its deputy board chair, Jan-Olof Jacke, will lead
the board until a permanent candidate is elected.
    "In a situation where there has been too much focus on my
person, I have decided to resign," Ingrid Bonde said in a
statement.
        Alecta's board 
    in April
     fired its CEO, and the FSA launched a probe, after it lost
19.6 billion Swedish crowns ($1.78 billion) from holdings in
U.S. niche lenders First Republic Bank, Silicon Valley Bank and
Signature Bank as those collapsed.
  
        Alecta's asset management chief stepped down shortly
after.
  
        
    Last month
     the FSA launched a second probe, this time into whether
Alecta complied with regulations when it invested 50 billion
crowns in Swedish property company Heimstaden Bostad, which has
said recently it is in need of cash.
  
        "The Financial Supervisory Authority's review of how
Alecta handled the investments continues. Alecta's focus or
orientation does not change because Ingrid Bonde chooses to
resign," the company said.
  

 (Reporting by Terje Solsvik, editing by Louise Breusch
Rasmussen)
 ((Louisebreusch.rasmussen@tr.com; +45 21 27 97 79;))