Money Laundering Scandal Turns Danske Into Europe’s Worst Bank Stock
- Watchdog doubled extra buffer requirement amid Estonia scandal
- Bank’s shares plunged as much as 11 percent on Friday alone
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Danske Bank A/S lost a tenth of its market value on Friday as the fallout of its Estonian money laundering scandal turns Denmark’s biggest lender into the year’s worst financial stock in Europe.
The head of the Financial Supervisory Authority in Denmark has ordered Danske Bank A/S to hold more capital to prepare it for hefty fines and protect it from the market fallout of the dirty money saga. Jyske Bank estimates that Danske may now be facing a fine of about $1.8 billion, while warning the figure could well be higher.