Danske Bank appoints new chief executive officer in wake of money laundering scandal
Danske Bank in an attempt to resurrect its sagging image marred by the € 235 million euro money-laundering scandal has appointed an interim chief executive on Monday to reassure the general investors who have been rattled by this latest set of allegations and are looking for a new leader.
Jesper Nielsen is all set to take the reins till a new replacement is found for Thomas Borgen who resigned last month in wake of the allegations.
According to a Reuters report, “The bank cannot move on with rebuilding the trust in the bank before he (Borgen) is gone,” said Jens Munch Holst, chief executive of MP Pension, which holds Danske Bank shares.
“Jesper Nielsen will continue to perform his duties as Head of Banking DK and is not a candidate for the permanent CEO position,” Danske Bank said in a statement.
The astonishing figure which puts the whole scam in perspective was put on the social media by Morgan Creek Digital founder and partner Anthony Pompliano on Monday in which he said that a single bank location at one location laundered more money than the entire cap market of cryptocurrencies.
REMINDER: A single bank location at one bank laundered more money than the entire market cap of cryptocurrencies.
– Crypto market cap: $225 Billion
– Danske Bank: Laundered $235 Billion
Long Bitcoin, Short the Bankers.
— Pomp 🌪 (@APompliano) September 30, 2018
Borgen quit when it came to light through an internal inquiry that payments worth 200 billion euros were moved through Danske Bank’s Estonian branch during an eight-year span which started in 2007.
“I agree with the board that it is best for all parties that the chief executive is someone who can help follow decisions through to the end, and as I have resigned, that is not me,” the 54-year-old said in a statement emailed to Reuters.
This latest development puts the Danish Bank in the dock as the bank had taken a morally higher ground earlier and implored its customers not to invest in the cryptocurrency market at all.
In a statement released on May 23, 2018, the bank had said, “Overall, we are negative towards cryptocurrencies and we strongly recommend that our customers avoid investing in cryptocurrencies. As a financial institution, we have an obligation to assist in the fight against financial crime and money laundering. At the current stage, cryptocurrencies do not offer the sufficient level of transparency in order for us to live up to our obligations within anti-money laundering regulation.”
This statement acquires all the more important in the light of the current scandal which brings to light bank’s hypocrisy and its double standards on cryptocurrencies.
Danske’s shares have nose-dived in the past six months as investors are in a flux at the mammoth proportion of the scandal and the potential fines that the bank could face.
Image via Shutterstock
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