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acquired shares held by the banks had to be sold by
December 31, 1937, with the exception of shares that could not be sold at a loss. The Kreuger group's large bank loans now meant that large shareholdings in the former financial empire ended up in the hands of the banks. Many banks felt compelled by the new legislation to sell off their shareholdings as soon as possible. The larger banks, on the other hand, chose to transfer the shares to newly formed holding or management companies, which were close to the banks in terms of management. Skandinaviska Kredit (Skandinaviska Banken), which among other things had become the main owner of the real estate company Hufvudstaden founded by Kreuger, solved the problem before the deadline by forming the investment company AB Custos on 13 March 1937. Custos is Latin for 'guardian' or 'protector'.
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The
Kreuger crash of 1932 resulted in several banks experiencing serious liquidity problems. This led to a change in legislation whereby the Swedish commercial banks lost their right to acquire shares from the turn of the year 1933/1934. This prohibitive legislation also meant that previously
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