Danske Bank has suspended six employees after Danish prosecutors started a probe into price manipulation on mortgage bond trades conducted in 2009.
Bloomberg News reports that The Danish Public Prosecutor for Serious Economic and International Crime has Friday 'brought accusations against Danske Bank of price manipulation under particularly aggravated circumstances', the Copenhagen-based bank said.
Danske said an internal investigation found that its rules had been violated in transactions between its home-loan arm, Realkredit Danmark A/S, and Danske Bank in the mortgage bond market. The bank said it notified the Financial Supervisory Authority, prompting the police investigation against Realkredit Danmark, Danske Bank and six employees.
'Usually we say that price manipulation will, as a minimum, lead to jail time if they’re convicted', Hans Fogtdal, a public prosecutor with the crime squad, said by phone. 'None of the involved seems to have had a personal motive to commit the crime. It was about securing Danske Bank an additional profit', The maximum time the employees face behind bars is four years, he said.
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image: © Lisamarie Babik