After that Mission Review disclosure of suspected money laundering within the bank, the share price fell on Wednesday by over 13 per cent and in Thursday, with 9.3 per cent. Many customers have shown disappointment over the bank’s actions and threatened to leave the bank.
But falling share prices, and customers that switch bank need not be the only consequences of the suspected money laundering, according to Hans Lindblad, director of the Swedish national debt office.
“this type of behavior is damaging the banks’ confidence and the risks that threaten the financial stability, which is very, very serious, ” he says to DN.
and the internal bank, it is also responsible for managing crisis-ridden banks. The authority has the mandate to safeguard for a stable economy and the financial market.
“of course We see very serious money-laundering and criminality in the financial sector, and it is troublesome with these recurring suspicions of criminal behavior,” he says.
Hans Lindblad says that the authority now looks over the whole of the so-called state payment model. In the systems to handle government payments, such as transfers between public authorities. In the day the money goes through the contracting banks, as Swedbank, but we are now investigating if it is possible to create a more secure system.
– The state, the payment model that we now see across the sales of 7,000 billion per year, it must be as secure as possible and the citizens must feel secure with the system.
on Thursday an independent review of the bank’s business. The bank signed on Thursday, in a press release that the accounting firm EY will be hired to review the material from the Mission’s audit disclosure.
According to Hans Lindblad, it is of utmost importance that all of the irregularities or violations are addressed.
– We welcome the fact that the Fsa together with systermyndigheter in other countries investigating these issues, but it rests a very great responsibility on the banks themselves in the future.
Otherwise, it can have major consequences, according to him.
” A bank is an important part of the financial system, and they form the bloodstream of the economy, if confidence plummets or disappears, it can interfere with financial stability, it is among the most costly that can happen in an economy.
systemically important bank, it means that it is too big to be declared bankrupt, and that it is at an absolute crisis would be taken over by the national debt office.
the Bank would then undergo a ”resolution” where the balance sheet is restructured in order to protect ordinary savers and normal functions, while shareholders and investors were forced to take the hit. Hans Lindblad stresses, however, that such a scenario is very remote and an absolute last resort.
– Where the limits are for when a trust is exhausted, is very difficult to say, it is situationsberoende and cannot define, but a 20% stock market fall is not a confidence-building development, ” he says.
the Financier and korruptionsjägaren Bill Browder, who appeared around the charges against both Danske Bank and Nordea, in his own words, found evidence that there is a link between Swedbank and the scandal that rocked the Danske Bank the past few years.
in similar scandals in recent years, concern Hans Lindblad.
– It is a matter of concern with the recurrence of the greed which materialized in a recurring suspicions of money laundering and other fraudulent behavior. Not only the Swedish banks, but is something we see everywhere, it is very, very serious that we cannot overcome it.
According to him, is the latest suspicions of money laundering within the bank’s organization symptomatic of an even bigger problem.
” Something is very wrong within the banking system because this type of error pops up all the time, I don’t think there is a single measure, but this is something that requires many different types of measures. You must in no way get away the incentive structure and the incentive for bankers to behave in this way
Read more: Fall in Swedbank’s share fuel – price rises
