Swedish pension fund Alecta removes CEO after US bank losses
Swedish pension fund Alecta has fired CEO Magnus Billing after experiencing significant losses from investments in several US banks, leading to damage to trust in the company's asset management.
- Alecta, Sweden's largest pension fund provider, recently announced a loss of 19.6 billion Swedish crowns ($1.87 billion) from shareholdings in First Republic Bank, Silicon Valley Bank, and Signature Bank.
- The company's board has concluded that new leadership is necessary to implement the necessary changes within asset management and re-establish trust.
- Alecta's management stated that the positions in the three banks were taken within the established framework for investments and the board shared that assessment.
- The Swedish Financial Supervisory Authority reassured the public that Swedish banks are well-capitalized and that the losses would have no discernable impact on customer savings.
- Alecta's Deputy CEO Katarina Thorslund will lead the company while the search for a new CEO goes on.
- Last week, the pension provider announced the replacement of its head of stock market asset management.