Alecta suffers $2 billion losses from First Republic Bank sale.

Alecta, Sweden's largest pension fund, is facing losses of almost $2 billion due to a failed investment strategy that made it one of the biggest shareholders in two collapsed US banks and another that's been caught up in the crisis. The losses have become clearer after the private pension group sold all of its First Republic Bank stake at a loss of 7.5 billion kronor ($728 million). The soured bets at Alecta have sparked an outcry in the Nordic country, as well as an internal investigation into its investment processes and a summons from the FSA.