SHARE
COPY LINK
VOLKSWAGEN SCANDAL

NORDEA

Nordic bank bans traders from buying VW shares

UPDATED: The biggest bank in the Nordic region, Nordea, has announced it is barring its traders from buying Volkswagen shares and bonds for six months over the German manufacturer's emissions scandal.

Nordic bank bans traders from buying VW shares
A VW dealer in west Sweden. Photo: Adam Ihse/TT

“We believe this action, or lack of action, from the management is outrageous. It's poor judgment in terms of business, but it's also very costly from a financial point of view,” Sasja Beslik, head of responsible investments at Stockholm-based Nordea, told the AFP newswire.

The announcement came after Volkswagen (VW) group admitted on Thursday that it had manipulated emissions tests of its cars in Europe.
 
Earlier in the week its CEO stepped down following a scandal over tests in the USA.
 
It was not immediately clear how many cars in Scandinavia might have been affected by the scandal.
 
 
German Transport Minister Alexander Dobrindt told reporters in Berlin on Thursday that government investigators sent to investigate at VW's headquarters had received the latest admission from company officials.

He said that officials would “carry on working intensively to find out exactly, together with VW, in detail which vehicles are affected so that we can further inform the public.”

Dobrindt said that most of the vehicles involved in the manipulation had 1.6 or 2-litre diesel engines.

VW is “working on” a list of the affected models, but “can't yet say when it will be published,” a spokesperson for the car firm told German tabloid Bild.

The EA 189 motors involved in the emissions scandal are also found in Audi's A1, A3, A4 and A6 cars, an Audi spokesperson also confirmed to the tabloid.

Dobrindt did not say whether the vehicles affected would have to be removed from circulation.

But he added that cars from other manufacturers would now be tested to see if the problem is more widespread.

Nordea is one of the biggest banks in Scandinavia with 11 million customers.

It has made a point of promoting an ethical business strategy in recent months following a scandal which linked its CEO with free hunting trips earlier this year.

NORDEA

Nordea’s Danish offices raided in money laundering probe

The Nordic region's largest bank Nordea said Monday that Danish prosecutors had raided its offices in Denmark as part of an investigation into money laundering.

Nordea's Danish offices raided in money laundering probe
File photo: Mads Claus Rasmussen / Ritzau Scanpix

The Danish State Prosecutor for Serious Economic and International Crime seized physical and digital material — including emails — from the Copenhagen offices on June 12th, reported the Danish business newspaper Børsen, which first broke the story.

The bank confirmed the raid in a statement to AFP, saying it was carried out in relation to a probe into “compliance with anti-money laundering procedures” at its international branch, which was responsible for non-Nordic customers.

“We are fully cooperating with the prosecution service to ensure that they have access to all relevant information,” said Nordea's Danish head Frank Vang-Jensen.

The bank said that in 2014, when it was refocusing its activities on Nordic countries — and away from Baltic states — it evaluated its customers at the international branch and “exited the customers who didn't meet our criteria”.

The Danish Financial Supervisory Authority then lodged a money-laundering complaint against Nordea in 2016.

In October last year, Sweden's financial crime unit also received a complaint against Nordea, which moved its Swedish headquarters to Finland later that month for tax reasons.

Nordea has set aside 95 million euros to cover potential first-quarter costs related to the money laundering probes.

The investigation comes as Denmark's largest lender Danske Bank is the target of criminal probes in several countries over some 200 billion euros in transfers that passed through its Estonian branch between 2007 and 2015, involving some 15,000 foreign clients.

READ ALSO: Nordea reported to Denmark investigators over money laundering

SHOW COMMENTS