Swedish fund Alecta lost $1.1 billion due to the collapse of Silicon Valley Bank, Norwegian Oil Fund - $263 million

The Swedish pension fund Alecta estimates its losses from investments in the bankrupt American bank Silicon Valley Bank (SVB) at SEK 12 billion ($1.13 billion).

Source. This was reported by MarketWatch.

SVB, which is the 16th largest bank in the United States, came under the management of the Federal Deposit Insurance Corporation on Friday. The latter transferred the bank's assets to a new legal entity and promised to provide full compensation to all depositors.

The same fate befell the smaller New York-based Signature Bank.

Alecta, which manages assets worth 1.12 trillion kroons, was the 4th largest shareholder of SVB Financial Group at the end of last year with a share of about 4.5%. The total volume of the investment fund in the bank since June 2019 is estimated at 8.9 billion kroons.

The Swedish pension fund is also a major shareholder of Signature Bank. Its total investments from January 2016 to July 2022 amounted to 3.2 billion kronor.

The Norwegian Petroleum Fund (a state pension fund) invested NOK 2.8 billion ($263.3 million) in SVB shares and bonds.

"This is the largest bank failure in the United States since the financial crisis, and we are closely monitoring the market situation," NBIM said in a statement quoted by MarketWatch.

The Norwegian Oil Fund's investment in Signature Bank shares is estimated at 400 thousand kroner.

Background. Read more about the catastrophic fall of a large American bank in Mind's article "Why did Sillicon Valley Bank collapse? Analysis of causes and consequences".