Troubled Stockholm-based bank D. Carnegie & Co, which was seized by the Swedish authorities in early November, has changed its management team with three internal promotions. The new managers maintain their old roles in addition to their new titles.

Claes Johan Geijer is the new group head private banking. He maintains his role as managing director of Carnegie’s private bank in Luxembourg. 

Peter Baekgaard is now group head of securities, an expansion of his role as head of securities in New York.  Peter Bäärnhielm was named group head of investment banking. Mr Bäärnhielm is also head of investment banking in Sweden.

Following the separation of Carnegie and Max Matthiessen, its insurance and pensions arm, Christoffer Folkebo, chief executive of the latter, is no longer a member of Carnegie’s management team.

“Following a very turbulent period, we can now focus on our business operations. The management team has been strengthened. As Carnegie Investment Bank and Max Matthiessen are now operating as independent companies, private banking is once again a separate business area.

Work on risk reduction has been intensified in recent weeks and the cost reduction programme is now being resumed,” said Mikael Ericson, president of Carnegie’s investment bank, in a statement.

Earlier this month, Sweden's national debt office assumed control of Carnegie Investment Bank and Max Matthiessen, the two units that made up Carnegie, after allegations that it took excessive loan risks.

The management board of Carnegie was pushed out only a year after being appointed in the wake of a trading scandal that prompted the regulator to levy the maximum fine against the bank. The watchdog revoked the bank's operating licence.

Chief executive Ericson and the rest of the board maintain their positions under government supervision.

Carnegie mandated Goldman Sachs in October to help find a possible buyer and then presented its own rescue plan to Swedish authorities, but failed to secure backing.

Carnegie provides services in securities brokering, investment banking, asset management and private banking and has approximately 800 employees in eight countries.