Swedish state takes over Carnegie

Sweden’s Financial Supervisory Authority announced on Monday afternoon that it was revoking the licence of the embattled Carnegie investment bank and that the bank was to be taken over by the National Debt Office.

Swedish state takes over Carnegie

According to Finansinspektionen’s investigation, Carnegie broke Sweden’s investment fund management laws and would have its licence withdrawn as a result.

Meanwhile, the National Debt Office (Riksgälden) informed Finansinspektionen that it intends to take over ownership of Carnegie.

“In the current climate on the financial markets it is good that the Debt Office is now giving support to Carnegie and is prepared to go in as owner to safeguard financial stability,” said Deputy Governor Svante Öberg in a statement.

If the Debt Office carries out its takeover plans, Finansinspektionen said it will reconsider the sanctions.

“Finansinspektionen finds, however, that the National Debt Office’s takeover makes it possible to find a long-term solution for Carnegie and therefore sees that it is possible to change the revocation to a warning,” said Finansinspektionen in a statement.

The Debt Office’s takeover can, according to Finansinspektionen, be seen as a liquidation with the option of a sale carried out in an orderly fashion and with secure financing.

The Debt Office’s involvement follows guidelines laid out in Sweden’s recent financial stability package giving the agency primary responsibility for administering assistance to the country’s troubled banks.

Specifically, the Debt Office has offered Carnegie a loan of up to 5 billion kronor ($646 million) which replaces the liquidity assistance previously extended to Carnegie by the Riksbank.

Finansinspektionen has been looking into failings in Carnegie’s internal management and controls, as well as the bank’s large exposure to one individual customer, who according to media reports is finance mogul Maths O. Sundqvist.

According to the bank’s quarterly report, Carnegie’s dealings with Sundqvist may have led to 1 billion kronor ($129 million) in credit losses.

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Cashless payments in Switzerland: What is Twint and how does it work?

If you live in Switzerland, you are likely no stranger to Twint and maybe even use it regularly to make and receive payments. But if you are not familiar with this app, this is what you should know.

Twint app can be installed on a mobile phone.
“Twinting” money with a smartphone is easy and convenient. Photo by Andrea Piacquadio from Pexels

In Switzerland, the word “Twint” is used both as a noun and a verb.

As a noun, it describes the mobile application which allows you to pay for various goods and services practically everywhere in the country.

As a verb, (“to twint”), it means to send someone money, or receive it, via the same app.

So what exactly is Twint?

Simply put, it is digital cash (not to be confused with bitcoin, which is digital currency) that was first introduced in Switzerland in 2014 and has become very popular since then.

Twint logo. Image by

People like it because it is an easy and quick way to make instantaneous payments, especially in situations when credit cards or physical cash can’t be used.

A big part of its convenience is that it can be used at cash registers, vending machines and parking meters, as well as in online shops — pretty much everywhere in Switzerland, even in places that don’t accept credit cards.

The only similar mode of payment would be your maestro debit card issued by your bank.

This video explains exactly how the process works.

Another advantage of Twint is that you can use it to send money to someone else’s mobile phone — as long as they also have Twint. And you can receive money the same way.

And there are no fees or charges for this service.

How does Twint work?

Anyone can use Twint, but you need a Swiss bank account or a credit card and, of course, a smartphone.

According to Twint website, you need a smartphone with either an iOS (from version 12.2 and upwards) or Android (from version 7 and upwards) operating system and Bluetooth capability (from version 4.0 and upwards).

“It is generally not possible for Twint to be used on Apple devices with an operating system older than “iOS 12.2” or on Android devices with an operating system older than “Android 7”. On Android devices without access to the Google Play Store (e.g. on certain HUAWEI models), the use of Twint app is also not possible”.

But If you have a compatible phone, installing Twint is easy.

Swiss banks offer their own version of the app, and you can download it directly from your bank’s website.

Then, when you use Twint to make a payment, the amount is debited directly from your bank account or credit card.

By the same token, if you receive payment from another Twint user, the money is automatically deposited in your account.

And you are not limited to just one Twint app.

If you have accounts is several banks, or have more than one credit card, you can install and use all of them.

READ MORE: How to open a bank account in Switzerland

Can Twint be used to make payments and receive money from abroad?

For the moment, Twint can be used solely in Switzerland and payments can be made only in Swiss francs – although this may change in future. 

“We are, however, working closely with providers in other countries to develop an international and multi-currency solution”, according to Twint website.

You can find more information about Twint here.

READ MORE: Which bank is best for Americans in Switzerland?