However bad a spiralling money laundering scandal has been to the three Baltic countries, it could get even worse. Financial regulators in Estonia and Latvia told the Financial Times they were afraid Swedish banks — which dominate both headlines on money laundering and their banking systems — could withdraw from the region, just as Danske Bank and Nordea have already done amid dirty money allegations, the Financial Times reported. “Sure, we are very worried,” said Peters Putnins, head of the Latvian regulator.
Residential skyscrapers are rare in Stockholm, a city permeated by five-story, classic stone buildings built at the turn of the last century. That’s now changing, Bloomberg News reported. The most spectacular addition to the skyline is nearing completion: A 125-meter, brutalist structure that could be mistaken for a tower of Lego blocks. Innovationen offers panorama windows and balconies overlooking the red, yellow and orange facades of the Vasastan neighborhood.
Scandinavians are taking a hard look at their institutions as allegations of systematic money laundering rock the entire region, Bloomberg News reported. With Swedbank AB becoming the latest lender to get dragged into a dirty money scandal that’s already engulfed Danske Bank A/S, those at the top of Sweden’s financial establishment are speaking out. Hans Lindblad, the director general of the Swedish National Debt Office, says the financial industry now risks losing the trust of the people. He says the consequences of that would be dire for the whole economy.
Reliance Communications has deposited $18.6m at India’s supreme court in a “partial payment” to creditor Ericsson, which is pushing to have its chairman Anil Ambani imprisoned for alleged contempt of court, the Financial Times reported. Last week, the Swedish group filed a petition with India’s supreme court, accusing RCom of breaching a court order to pay $79m in unpaid dues. It alleged that the telecom company had “illegally pocketed” the proceeds of asset sales, instead of transferring funds to creditors.
Swedish group Ericsson has asked India’s top court to send tycoon Anil Ambani to prison, after his troubled Reliance Communications allegedly breached a court order to pay $79m in unpaid dues, the Financial Times reported. RCom, once India’s most valuable telecom company, has been fighting to stave off bankruptcy for more than a year, after suffering a heavy loss of market share. Ericsson had originally claimed Rs11bn ($158m) in unpaid fees for outsourced management services, and launched insolvency proceedings against RCom last year.
With sterling debt investors shaken by the growing strain on the UK high street, British bed seller Dreams is turning to an unusual source of funding: Sweden. Owner Sun Capital Partners this week began marketing a €175m high-yield bond under Swedish law to fund a “dividend recapitalisation” of Dreams, a term for when private equity groups layer debt on a company to take money out for themselves, the Financial Times reported. The Florida-based firm bought the bed retailer out of administration five years ago and unsuccessfully sought to sell the business last year.