Carnegie, the Swedish investment bank, has dismissed its head of trading following the discovery of the violation of internal rules to overestimate proprietary trading profits. The bank said today revising the trading results will wipe Skr128m (€14m) off net profits, more than half the sum it earned in the first quarter.

Carnegie, which announced a one-quarter fall in net profits to Skr211m a fortnight ago, said in a statement today it has revalued its trading positions after recently discovering "that violations of prescribed prudent valuation principles have taken place in the proprietary trading department, resulting in an overestimation of trading results during 2007".