Danske Bank’s CEO Thomas Borgen quits midst a $234 billion money laundering scandal

Investors concerns were largely driven by the potential involvement of U.S. authorities which led to the nose diving of Danske’s shares.

On Wednesday, Thomas Borgen, Danske Bank’s CEO quit following a money laundering scandal which involved $234 billion (200 billion euros) flowing through its Estonian branch between 2007 and 2015.

“It is clear that Danske Bank has failed to live up to its responsibility in the case of possible money laundering in Estonia. I deeply regret this,” said Borgen in a statement.

According to Danske Bank, following its internal investigation into the affair, it came to the conclusion that Borgen, Chairman Ole Andersen and the board of directors “did not breach their legal obligations towards Danske Bank”.

The financial community at large as well as regulators had eagerly awaited the report from Danske Bank.

Its report marks a critical milestone for the Danish lender and comes in the wake of calls by Brussels for a new European Union watchdog to crack down on financial crime.

Investor concerns stemming from a potential involvement by U.S. authorities have resulted in Danske Bank’s share price tanking in the last six months. Its shares have been wiped out.

Earlier this year, the United States had accused Latvia’s ABLV of covering up money laundering as a result it was denied U.S. dollar funding, which led to its collapse.

Although Danske does not have a banking license in the United States, the denial of working with other U.S. banks has led to the shutting down of its global financial network.

Following the release of the report, Danske’s shares fell further by 5%.

Categories: Creativity, Economy & Finance, Entrepreneurship, HR & Organization, Regulations & Legal, Strategy, Uncategorized

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , ,

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: