Breaking News
Investing Pro 0
New Year’s SALE: Up to 40% OFF InvestingPro+ CLAIM OFFER

Danske Bank picks interim CEO to soothe investor concerns over scandal

Stock Markets Oct 01, 2018 05:52AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Thomas Borgen has resigned as a result of money laundering scandals, Danske Bank announces in a stock exchange announcement
 
GS
-0.36%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
SIEGn
+0.31%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
SEBa
+1.47%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
DANSKE
+1.35%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
MS
+0.37%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
EOS/USD
-0.72%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Teis Jensen

COPENHAGEN (Reuters) - Danske Bank (CO:DANSKE) appointed an interim chief executive on Monday as it sought to reassure investors rattled by a $235 billion money laundering scandal and looking for a new leader.

Jesper Nielsen, the head of Danske Bank's domestic banking business, will take on the running of the bank while a replacement is found for Thomas Borgen, who resigned last month but was not originally going to leave with immediate effect.

"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, said.

Borgen quit after an internal inquiry found that payments totaling 200 billion euros, many of which Danske Bank said were suspicious, had been moved through its Estonian branch between 2007 and 2015.

"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.

Borgen, who was in charge of Danske Bank's international operations, including Estonia, between 2009 and 2012 and became CEO in 2013, said last month that while he was cleared from a legal point of view, he held "ultimate responsibility".

Denmark's largest bank said Borgen has been relieved of his duties, while Nielsen will continue to work as Head of Banking DK and is not a candidate for the permanent CEO position.

"We are of the opinion that, with the situation the bank is in, it is best that the executive director is also part of the bank's future," chairman of the bank Ole Andersen said.

He added that finding a new CEO was progressing as planned, but a spokesman for the bank declined to estimate when a new CEO could be announced, or whether the appointment of an interim CEO meant that the board has widened the search for a new CEO.

British shareholder adviser Hermes EOS has urged the bank's board to explore suing senior executives over the money laundering scandal, the Financial Times reported on Monday.

Hermes EOS said it wanted the bank to emulate German engineering conglomerate Siemens (DE:SIEGn), which sued several senior managers, including former chief executives and chairmen, over a large bribery scandal, the newspaper reported.

Hermes EOS did not respond to requests for comment.

Denmark's MP Pension said it will hold a meeting with Danske Bank this week and will ask "a series of critical questions to make sure the bank is doing what it can to clean up to ensure that a money laundering case will never happen again".

In another top level departure, Danske Bank said its chief legal adviser had also resigned.

"I have taken part in many of Danske Bank’s key cases in the past five years, and I feel it is time to move on in my career," Group General Counsel Flemming Pristed said.

"The recent Estonia case in particular has been very demanding, and it is a good time for me to stop now that a new CEO is to be appointed and the findings of the bank’s internal investigations into the matters at the Estonian branch have been announced," Pristed said in a statement.

NAMES IN FRAME

Danske Bank has not named any potential permanent replacements for Borgen, but the head of its Wealth Management unit Jacob Aarup-Andersen has been named by some analysts and media including Danish online media Finans as a likely new CEO, although some say that at 40 he is too inexperienced.

Aarup-Andersen took up his role in April following a two-and-a-half year stint as Danske's CFO, and before that two years as CEO of its pension fund Danica.

After having obtained a master's degree in Economy at University of Copenhagen in 2002 Aarup-Andersen worked in London's financial district for amongst others Goldman Sachs (NYSE:GS) for ten years before he returned to Denmark for a job as Chief Portfolio Manager at Danske's Capital unit in 2012.

Others mentioned by analysts and media outlets as possible candidates are the CEO of Danish mortgage lender Nykredit, Michael Rasmussen, the Head of European Fixed Income and Commodities at Morgan Stanley (N:MS) Jakob Horder, and Annika Falkengren who is the former CEO of Swedish bank SEB (ST:SEBa) and a partner in Swiss bank Lombard Odier.

Morgan Stanley and Nykredit declined to comment, while Lombard Odier did not immediately respond.

Danske Bank picks interim CEO to soothe investor concerns over scandal
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email