Company briefs - 2010-01-20

A proposed bill on amending Estonia’s banks’ act will make it possible for the state to take over banks as last resort “for securing financial stability,” reports LETA. The proposed provision applies to local credit institutions that do not cooperate with the authorities. According to the draft, the state will be able to consider forced takeover of credit institutions in specific cases for securing financial stability if other measures fail. This could mean taking over the holdings without fair compensation to bank shareholders. In other provisions, the state will increase the deposit compensation limit to 100,000 euros by the end of the year and increase the powers of the Financial Supervisory Authority.

The Estonian division of telecoms equipment manufacturer Ericsson will manufacture 4G (fourth generation) equipment in its Tallinn-based plant, which is currently being developed, reports LETA. Scandinavian TeliaSonera has selected Ericsson to be its vendor for the world’s first 4G mobile communications network. Veiko Sepp, CEO of Ericsson Eesti, said “We are presently investing in new high-end production lines.” TeliaSonera has three nation wide 4G/LTE licenses; in Sweden, Norway and also recently in Finland.

Swedbank has announced the removal of Council Chairman Carl-Eric Stalberg from office, reports LETA. Stalberg became chairman of Swedbank in 2003 and has earned much criticism concerning the bank’s investments in the Baltic region. It is expected that losses for Swedbank in 2009 will reach about 691 million lats (987.1 million euros). According to his employment contract, Stalberg was to leave office in January 2011, when he would reach the age of 60, and until then will receive a full salary. Anders Sundstrom, director of insurance giant Folksam, the main owners of Swedbank, expressed thanks for Stalberg’s work. “I have had and continue to have full confidence in him,” said Sundstrom.