Now here's a first.
Bloomberg reports that the Public Prosecutor for Serious Economic and International Crime, which on February 7 accused Danske, six of its employees and its home-loan unit of rigging mortgage bond prices in 2009, needs to find out what role the prospect of a bigger paycheck played, Public Prosecutor Hans Fogtdal said Monday in a telephone interview.
'It’s not apparent from the information that we have now that the employees made the transactions for their own benefit,' Fogtdal said. 'But we are looking more closely at the bonus program to see whether it has any bearing on this case, whether the employees benefited from it.'
The alleged misdeeds were designed to drive mortgage bond prices higher, making client redemptions more costly, according to the public prosecutor. The trades in question date back to some of the darkest hours of the global financial crisis, after the 2008 failure of Lehman Brothers sucked liquidity out of most markets. The case raises questions as to how widespread the practice of price fixing was, lawmakers said last week.
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