Sweden Prepares for Financial Collapse in Latvia, Major Bank Losses at Home

The following is my translation of a much-discussed article that appeared in Swedish daily Svenska Dagbladet over the weekend. This information was being withheld from the public and leaked at an inopportune moment.

Note that the Swedish government has secretly been preparing the banks for financial Armageddon, encouraging Swedbank into a rights issue which arguably was conducted under fraudulent pretenses – very reminiscent of Bank of America’s (BAC) shareholder vote for the merger with Merrill Lynch. In August, I asked “Why is Swedbank doing a second rights issue?.” Now we know.

This is the kind of thing that topples governments.

Secret meeting on the crisis in Latvian

Finance Minister Anders Borg has had secret talks with the major Swedish banks and warned of a near economic collapse in Latvia, Svenska Dagbladet has learned. A nightmare scenario for Swedbank and SEB.

Yesterday Anders Borg issued a stark warning to the Latvian Government that it must take its financial problems seriously.

The promised cuts must be implemented when the new Latvian budget is presented in late October, according to Finance Minister.

The international community’s patience is very limited, stressed Anders Borg at the summit of European finance ministers in Gothenburg where he hosts as the finance minister in Presidency.

Original Source

Hemligt möte om lettisk kris – Svenska Dagblaget

Also see my August post, “Zombie banks Scandinavian edition and the threat of too big to fail.” This problem looms even larger now.

Comments

[Edward Harr...:]

My full translation is available on my own site here:
www.creditwritedowns.c...

The original in Swedish is here:
www.svd.se/naringsliv/...

Oct 06 04:22 AM

[bottoms-up:]

Edward, Thank you for another great article.

Don't you think that there's a "hang together or hang separately" mentality with the G-20, et al?

I can't see how anything will improve until there is transparency... That one word will determine our collective fate.

BTW... About your Recession is Over: Depression is...

seekingalpha.com/artic...

You, unfortunately, called this one right on the money. The huge rally today is being loaded by Australia's rate increase... They are pulling out much too quickly and the sham now is the problem has passed.

I think you're correct. The next collapse will be far worse (maybe even worse than you've imagined).

Meanwhile gold is skyrocketing... $2,000.00 oz dead ahead. I wonder how long it will be until we have some "announcement" from the Ben at the Fed, Tim, or Obama.

Oct 06 11:15 AM

[apresto:]

Welcome to the heaven... who it will be the next?

Oct 06 02:45 PM