Wed, Sep 12, 2018 - Page 10 News List

Investors punish Danske over money laundering

Bloomberg

However, speculation is growing that he might need to step down.

According to a Bloomberg survey of nine analysts conducted before the Wall Street Journal report, the likelihood of Borgen continuing until the end of this year is about 50 percent.

By the end of next year, the analysts put the probability at about 40 percent.

Some investors have already decided to take a step back from Danske Bank as the laundering case grows. Swedbank AB has removed its stake in the Danish bank from its focus portfolio, and instead increased its exposure to Nordea Bank AB and Investor AB, it said this week.

MP Pension, which has about US$20 billion in assets under management, said over the summer that it has put the bank on its blacklist, halting all purchases of its shares.

ATP, which oversees more than US$120 billion and is also a Danske investor, said it was “discontent with the lack of urgency the board has displayed in initiating the investigation.”

“They should have acted more promptly, acknowledging the severity of this case right away,” Stephan Ghisler-Solvang, head of communications at the fund, said in an e-mail.

At the government level, Danish Business Minister Rasmus Jarlov said the evidence available points to the likelihood that “criminal acts” were committed in connection with the Danske case.

He added that the EU needed to learn lessons from the scandal.

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