Securum
Encyclopedia
Securum was a Swedish
state company founded in 1992 during the financial crisis in Sweden 1990–1994 for the purpose of taking on and unwinding bad debt
s from the partly state-owned Nordbanken bank. It followed a proposal made to the Swedish authorities by McKinsey & Co and based on better practices from the US banking crises of the 1980s (e.g., Savings & Loan, Resolution Trust Company and Mellon Bank). Many of the debts were owed by real-estate companies and it became a goal for Securum to stabilize the property market. The company was established when Anne Wibble
was Finance Minister and Per Westerberg
was Minister for Business and Industry in the Government of Carl Bildt
.
The company took over a quarter of the bank's credit portfolio, comprising 3000 credits with 1274 companies (of which 790 were listed companies, the biggest of which was Nobel Industries
to the value of 24 billion Swedish kronor. Securum had a share capital
of 24 billion kronor from the Swedish state as well as 27 billion in credits. That would be enough to get through the crisis during a period of 10 to 15 years.
Securum's design was quite particular and followed proven success factors for a "bad bank": speed and independence to isolate the problem exposures, while simultaneously protecting capital and liquidity of the surviving "good bank" and its operations. In addition, The company management were given free hands. A large number of the credits were unwound by the summer of 1994. Five flotations were executed: Nobelpharma – today Nobel Biocare
– Servisair
and three property companies: Castellum AB, Norrporten as well as Pandox. By the summer of 1997, Securum itself could be wound down.
Sweden
Sweden , officially the Kingdom of Sweden , is a Nordic country on the Scandinavian Peninsula in Northern Europe. Sweden borders with Norway and Finland and is connected to Denmark by a bridge-tunnel across the Öresund....
state company founded in 1992 during the financial crisis in Sweden 1990–1994 for the purpose of taking on and unwinding bad debt
Debt
A debt is an obligation owed by one party to a second party, the creditor; usually this refers to assets granted by the creditor to the debtor, but the term can also be used metaphorically to cover moral obligations and other interactions not based on economic value.A debt is created when a...
s from the partly state-owned Nordbanken bank. It followed a proposal made to the Swedish authorities by McKinsey & Co and based on better practices from the US banking crises of the 1980s (e.g., Savings & Loan, Resolution Trust Company and Mellon Bank). Many of the debts were owed by real-estate companies and it became a goal for Securum to stabilize the property market. The company was established when Anne Wibble
Anne Wibble
Anne Wibble was a Swedish politician . From 1991 to 1994 she served as Minister for Finance. She was the daughter of Bertil Ohlin, a Nobel laureate....
was Finance Minister and Per Westerberg
Per Westerberg
Per Erik Gunnar Westerberg is a Swedish Moderate Party politician and as of 2006 the current Speaker of the Swedish Riksdag, of which he is a member since 1979, and thus also its most senior member ....
was Minister for Business and Industry in the Government of Carl Bildt
Carl Bildt
, Honorary KCMG is a Swedish politician, diplomat and nobleman. Formerly Prime Minister of Sweden from 1991 to 1994 and leader of the liberal conservative Moderate Party from 1986 to 1999, Bildt has served as Swedish Minister for Foreign Affairs since 6 October 2006...
.
The company took over a quarter of the bank's credit portfolio, comprising 3000 credits with 1274 companies (of which 790 were listed companies, the biggest of which was Nobel Industries
Nobel Industries
Nobel Industries can refer to:*Nobel Industries - A company established by Alfred Nobel in Scotland and merged into Imperial Chemical Industries in 1927...
to the value of 24 billion Swedish kronor. Securum had a share capital
Share capital
Share capital or issued capital or capital stock refers to the portion of a company's equity that has been obtained by trading stock to a shareholder for cash or an equivalent item of capital value...
of 24 billion kronor from the Swedish state as well as 27 billion in credits. That would be enough to get through the crisis during a period of 10 to 15 years.
Securum's design was quite particular and followed proven success factors for a "bad bank": speed and independence to isolate the problem exposures, while simultaneously protecting capital and liquidity of the surviving "good bank" and its operations. In addition, The company management were given free hands. A large number of the credits were unwound by the summer of 1994. Five flotations were executed: Nobelpharma – today Nobel Biocare
Nobel Biocare
Nobel Biocare is a company operating in dental implantology and aesthetic dental solutions. The headquarters are located in Kloten near Zurich, Switzerland...
– Servisair
Servisair
Servisair is an aircraft ground handling company, operating at 175 airports worldwide.It is a subsidiary of Derichebourg. Its head office is in the Servisair House in Runcorn, Cheshire...
and three property companies: Castellum AB, Norrporten as well as Pandox. By the summer of 1997, Securum itself could be wound down.