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.
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.