Germany in CRISIS: Deutsche Bank shares hit RECORD low as DAX PLUMMETS
DEUTSCHE Bank shares hit record lows today after the German lender admitted to processing payments for scandal-hit Danske Bank in Estonia.
By LEVI WINCHESTER
Express.co.uk
Tue, Nov 20, 2018
A spokesman for Deutsche Bank said the relationship with Danske ended in 2015 after it suspected suspicious activity.
He told Reuters: “Our role was to process payments for Danske Bank.
“We terminated the relationship in 2015 after identifying suspicious activity.”
The statement sent shares in Deutsche Bank plunging to record lows of 8.08 after dropping more than 4 percent.
Shares in the German lender later recovered slightly to claw back up to 8.23 as of 14:30 GMT.
The DAX also nosedived in value today, sinking 201.81 points – a drop of 1.84 percent.
Danske Bank is embroiled in an alleged €200 billion (£177 billion) money laundering scandal involving a branch in Estonia.
The allegations have triggered criminal investigations, forced out its CEO and chairman and rattled investors.
It was revealed last month Denmark’s largest bank is facing a probe by the US Department of Justice.
An investigation by the bank found “a series of major deficiencies” in its controls to prevent money laundering.
More than half of Danske Bank’s 15,000 customers in Estonia were suspicious, the investigation found.
Interim CEO Jesper Nielsen said the affair had tarnished the reputation of Danske Bank.
He said: “We have breached the expectations society had of us.
“The case and the course of events around it does not reflect the bank we want to be.”
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