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economy

HQ Bank stayed afloat on secret loans

Published lördag 9 oktober 2010 kl 12.52
The troubled HQ bank closed its doors this summer.

The Swedish investment company Öresund secretly loaned the failed Swedish HQ Bank over 10 million U.S. dollars-worth of stock shares, reported newspaper Dagens Industri on Friday.

The newspaper bases their report on a series of internal mail that the bank's management sent each other. News agency TT writes that this new information reveals that the bank was having liquidity problems for longer than had been thought. Using the shares as securities, HQ could go to other banks to seek loans and thereby stay afloat.

This summer, Swedish authorities revoked HQ's banking license and forced the bank into liquidation.

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