Stockholm - Stockholm-based Carnegie Investment Bank AB lost its operating license Monday and has been taken over by the Swedish National Debt Office.

The Swedish Financial Supervisory Authority (FSA) on Monday said Carnegie during a long period of time had taken "exceptional risks" by giving large loans to a single client.

Carnegie has been under review by the financial watchdog since it recently disclosed a writedown of 1 billion kronor (126 million dollars) over "an individual credit commitment" in its third-quarter report.

The National Debt Office took over the shares posted as collateral for a loan Carnegie received earlier Monday, replacing a 5-billion- kronor (630-million-dollar) loan it had with the central bank.

The Debt Office said it did not aim to "remain as owner for an extended period of time. The intention is to sell the companies involved on commercial terms to buyers that obtain the Financial Supervisory Authority's approval."

Financial Markets Minister Mats Odell and Bo Lundgren, the head of the National Debt Office, were due to comment the decision later.

Carnegie had Monday morning unveiled plans to issue new shares worth 1.2 billion kronor (151 million dollars), but the main owners said the attempt was ditched since it had failed to keep its operating licence.

A year ago the watchdog issued a maximum 50-million-kronor fine against Carnegie and ordered the replacement of the chief executive and election of a new board over poor supervision.

Trading in Carnegie shares was halted on Monday.

The central bank and the Swedish Financial Supervisory Authority have said Carnegie was solvent.

Carnegie is engaged in stockbroking, equity analysis, equity trading, asset management and advice on corporate acquisitions in the Nordic region, and has some 1,100 employees. (dpa)