More On Swedbank
Stålberg characterize these rumors as something made up by vile speculators, and has come out advocating a temporary ban on short selling, to prevent short sellers from pushing down Swedbank stocks.
At the same time however, media reports that Swedbank and other Swedish banks are increasingly starting to require some of their borrowers to repay the loans in advance. That presumably reflect a fear that they won't be able to pay back later, and likely also reflect a generally more restrictive lending standard. That implies that monetary conditions are rapidly becoming much tighter. This should finally solve the problem of too high inflation and current account deficits, but also deepen the short term downturn. I'll return later in the day with a separate post on the baltic economies.