The Swedish Financial Supervisory Authority launched an investigation into Carnegie on Oct 27 after its third-quarter report revealed a 1 billion kronor writedown related to 'an individual credit commitment.'

The regulator said it is looking into possible oversight in internal management as well as the bank's handling of large credit exposures. It could decide on possible sanctions against Carnegie later on Monday and is expected to announce its verdict - which may include stripping the bank of its license to do business - within the next couple of days.

Carnegie said the program was the result of a dialogue between the bank and the regulator and contains a number of measures to ensure stability and guarantee the company's financing. It will only come into effect if Carnegie is allowed to keep its licenses.

The share issue will be divided into two parts - an issue of about 400 million kronor to 'a new major shareholder' and a rights issue of about 775 million kronor with preferential rights for existing shareholders.

Further information about the program will be revealed on Tuesday, the bank said.

Trading in Carnegie's shares in Stockholm has been suspended until further notice. The shares lost more than half of their value at the end of Oct after the bank reported disappointing third-quarter earnings and was forced to seek 5 billion kronor in financial assistance from the Swedish central bank.

Founded in 1803 as a trading company, Carnegie's operations today include brokerage services, equity analysis, equity trading, asset management and advice on corporate acquisitions. -- AP