Danske Bank forced CEO search for regulator rejection


Copenhagen (AP) – Danske Bank (DANSKE.CO), reeling from a money laundering scandal, the search continued after a Danish continue after a new CEO Regulatory authority rejected be internal candidate for the job, and analysts said it would be forced, looking outside the Bank.

file photo: General view of the building in Copenhagen, September 27, 2018 the Danske Bank. REUTERS/Jacob Gronholt-Pedersen / file photo

Jacob Aarup-Andersen, 40, choice take over the helm of Denmark’s largest bank the Board of Danske, was rejected by supervisory authority of the country on the grounds he was experienced enough, not.

the previous CEO, Thomas borrowing, was ousted last month as the Group struggles with a 200 billion euro ($ 230 billion) money-laundering scandal, the multiple criminal investigations and frightened investors has prompted.

Aarup-Andersen joined Danske by Danica pension the year of 2016 as chief financial officer and head of the asset management since May.

while the regulators found he was “well qualified in many areas”, he added, “long experience, including within the Danske Bank business areas, is required,” the Bank said.

“the Board of Directors the Board of directors unanimously supported Jacob Aarup-Andersen as new CEO, well knowing that long experience in certain areas would have been desirable”, said Chairman Ole Andersen in a statement, adding that the Board now talked with other potential candidates.

unusual movement to the decision to block the financial supervisory authority, Bank Board increases pressure to Danske.

“This can not be interpreted as anything but a slap in the face,” said per Hansen, Economist at the investment firm of Nordnet. But he thought was probably not the Chairman resign before a new CEO is found.

An external candidate search

Danske Bank, Denmark Sydbank Analyst Mikkel Emil Jensen said possibly from the outside. “There is no other internal candidates left,” he said.

file photo: Danske Bank is a sign on a building in Copenhagen, to see September 27, 2018. REUTERS/Jacob Gronholt-Pedersen / file photo will be difficult

risk difficult to measure

but the task, since the full extent of the money laundering scandal and potential still not covered on penalties.

“there is no one, the risk that Danske Bank and a future CEO unable, either, to quantify the risks of work-related, that is a big challenge quantify can,” said Peter Lundgreen, CEO of investment Consulting firm Lundgreen’s capital.

Analysts and media

other names mentioned as possible candidates for the CEO of the Danish Nykredit Mortgage Bank, Michael Rasmussen; the head of European fixed-income securities and commodities at Morgan Stanley (MS. N) James Horder. and Annika Falkengren, who is the former CEO of Swedish Bank SEB (SEBa.ST) and partners in the Swiss Bank Lombard Odier.

Danske Bank shares hit a four year low this month, after the Bank said it faced a US criminal investigation into a money laundering scandal in its Estonian subsidiary. The shares are more than 40 percent this year.

credit rating agency Moody’s last week said it has downgraded all Danskes of long-term debt ratings because of the criminal investigation into the Bank through the US Department of Justice.

it followed similar moves by rating agencies, DBRS, S & P and Fitch.

Jesper Nielsen, the head of the Danske Bank was domestic banking business, will remain as interim CEO.

the former CEO quit borrowing, after an internal investigation found that Bank said many of the Danske payments amounting to EUR 200 billion, suspicious were moved by the Estonian subsidiary between 2007 and 2015.

shares in Danske were traded Wednesday up 2.1 percent to 138.7 Danish kroner at 1156 GMT.

message from Stine Jacobsen; Editing by Keith Weir and our standards by Adrian Croft

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