(Bloomberg) -- After Howard Wilkinson testified to Danish lawmakers on Monday, investors started selling shares in Danske Bank A/S and Deutsche Bank AG.
On Wednesday, the former Danske employee turned whistle-blower is due to testify again, this time before European lawmakers in Brussels.
Deutsche Bank Hits New Record Low on Worry over Danske Role
Wilkinson, a 47-year-old Briton who says he fears for his safety since revealing his identity, is behind a list of allegations that put Denmark's biggest bank at the center of one of Europe's worst ever money laundering scandals. But his testimony on Monday suggested that Danske was only in a position to funnel dirty funds around thanks to considerable help from a number of other banks.
Here's a Recap of the Key Points:- Wilkinson said on Monday there were at least 10 banks involved in the Danske laundromat.
- Four were based in Russia, of which one was a unit of a U.S. bank and one was a unit of a European bank.
- Three were Danske Bank entities, one in Estonia, one in Denmark and one in Lithuania.
- And three were correspondent banks. Bloomberg and other news organizations have reported that the banks in question are JPMorgan Chase & Co., Bank of America Corp., and Deutsche Bank. Wilkinson said on Monday that a large European bank helped Danske handle about $150 billion in flows from Russian clients.
- Wilkinson also pointed to a complex network of shell companies based in the U.K., and similar structures in Denmark, that helped facilitate the whole web of illicit trades.
- Four were based in Russia, of which one was a unit of a U.S. bank and one was a unit of a European bank.
- Three were Danske Bank entities, one in Estonia, one in Denmark and one in Lithuania.
- And three were correspondent banks. Bloomberg and other news organizations have reported that the banks in question are JPMorgan Chase & Co., Bank of America Corp., and Deutsche Bank. Wilkinson said on Monday that a large European bank helped Danske handle about $150 billion in flows from Russian clients.
If one thing is clear after Monday's testimony, it's that “this is far from over,” said Joakim Bornold, a savings adviser at Nordnet AB in Stockholm. For Danske investors in particular, “it's hard to compute certain consequences that it will have. One shouldn't underestimate the risk even if the valuation is tempting.”
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