Photo: Thomas Borberg/Polfoto
Realkredit Danmark, the mortgage unit of Danske Bank, is facing an additional charge of revealing insider information in an ongoing price manipulation investigation.
The public prosecutor for serious economic and international crime (Statsadvokaten for Særlig Økonomisk og International Kriminalitet) has expanded the charges against Realkredit and one of its employees who was already facing charges of price manipulation.
The new accusations allege that the employee disclosed inside information about a new two percent mortgage bond to an employee of Danske Bank in August 2009.
In addition to that employee, three other individuals are under suspicion of price manipulation. Charges against two senior Danske Bank employees were dropped earlier this month.
Danske Bank itself instigated the initial investigation by the Danish Financial Supervisory Authority (Finanstilsynet) after it was found that the company’s rules on bond transactions had been violated.
Realkredit Danmark, which announced the additional charge in a stock exchange announcement on Monday, said it was cooperating with the investigation.