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Wednesday 12

December, 201812:52 PM



Deutsche Bank shares get caught in Danske maelstrom

Deutsche Bank shares get caught in Danske maelstrom

Shares in Germany's biggest lender Deutsche Bank tumbled Tuesday over fears it may be tied to a money laundering scandal at Danske Bank.

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21.11.2018 04:09 PM

Shares in Germany's biggest lender Deutsche Bank tumbled Tuesday over fears it may be tied to a money laundering scandal at Danske Bank.

Stock in the Frankfurt institution shed 4.6 percent by 4:10 pm (1510 GMT) to trade at 8.17 euros ($9.30), against a DAX index of German blue-chip firms down 2.0 percent.

The stock had earlier in the session hit its lowest-ever level, at 8.05 euros.

Citing people familiar with the matter, Bloomberg News reported that Deutsche was the unnamed bank a Danske whistleblower said Monday had handled almost $150 billion of suspect transactions originating in the Danish firm's Estonian branch.

That sum, flagged up by whistleblower Howard Wilkinson, is the lion's share of some $201 billion that passed through Danske Bank's Estonian branch between 2007 and 2015, according to an investigation by a law firm engaged by the Danish lender.

Bloomberg also reported that top German financial supervisor Bafin was looking into Deutsche's relationship with Danske.

But a Deutsche spokesman told AFP Tuesday that "we are neither aware of any investigation by Bafin nor have we received any formal requests for information."

Deutsche added that it "ended its business relationship with Danske Bank in 2015 after noticing suspect activity."

In contrast to German authorities, the US Securities and Exchange Commission (SEC) is reportedly taking an interest in the case.

Deutsche has paid out billions in US penalties over the past two years, notably over its role in the subprime mortgage crisis.
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