Sweden’s Top Pension Fund Faces Probe After $2 Billion Loss (1)

The fallout for the Swedish pension fund embroiled in the US banking crisis deepend on Thursday after the country’s watchdog said it was formally opening an investigation.

Alecta’s risk management systems will be scrutinized by the Swedish Financial Supervisory Authority in the wake of the fund’s failed US bank bets that led to losses of nearly $2 billion, according to a statement.

The debacle sparked an outcry in Sweden — where Alecta oversees 1.2 trillion kronor ($116 billion) of retirement savings for a quarter of the population — and has already led to the ousting of the fund’s chief ...