Swedish pension fund Alecta removes CEO after US bank losses

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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.
Summary
- 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.