Scandinavian banks laundering crisis
The shares of the Scandinavian bank Skandinaviska Enskilda Banken (SEB), accused of redirecting illegal funds from the Soviet Union, recovered after a statement refuting the charge. The stock is 11% lower than before the revealing release of the Swedish broadcaster SVT.
Danske Banc will allocate $ 295 million to expand the anti-money laundering system and freeze employment, excluding regulatory positions. The Banc also affirmed that the cost-revenue ratio that is a measure of basic profitability, grew up to 58.5%. The bank wants to return the ratio to 50 by 2023, but this can be problematic, given the loss of 20 thousand customers.
Now SEB has escaped the worst. Stocks hold above the low reached last year when the crisis began. Moreover, Danske Bank and Swedbank, another Swedish bank, were less fortunate as they faced similar charges. Their stocks are the worst among European banks this year. The Dutch bank ABN AMRO is in a similar situation and is the fifth worst in the industry since the beginning of the year.