Swedish investment bank HQ Bank says it is going into involuntary liquidation after the country's financial supervisory authority revoked all its licences.
The bank said it tried over the weekend to reach a deal with another banking group to allow its business to continue. 'An almost completely agreed solution with such a party has proven impossible to implement,' the bank said in statement.
Sweden's financial supervisory authority said on Saturday that HQ Bank had breached Swedish legislation and demonstrated serious deficiencies in its trading operations.
Finansinspektionen (FI) said HQ Bank had 'overvalued its trading portfolio for a long time' and that its financial position was reported inaccurately.
The regulator said that a correct valuation would have shown that HQ bank had been undercapitalised since December 2008.
