DANSKE ELECTS NEW CHAIR­MAN TO LEAD BANK THROUGH MONEY-LAUN­DER­ING SCAN­DAL

The Globe and Mail Metro (Ontario Edition) - - BIRTH AND DEATH NOTICES -

COPEN­HAGEN Danske Bank elected the favoured can­di­date of its top share­holder as its new chair­man on Fri­day to help steer the Dan­ish lender through a multi­bil­lion euro money-laun­der­ing scan­dal.

Au­thor­i­ties in Den­mark, Es­to­nia, Bri­tain and the United States are in­ves­ti­gat­ing pay­ments to­talling €200-bil­lion ($303.3-bil­lion) made through Danske Bank’s tiny Es­to­nian branch be­tween 2007 and 2015.

The threat of a heavy fine from the U.S. Depart­ment of Jus­tice has sent Danske’s shares down al­most 50 per cent since March, eras­ing around US$15-bil­lion of mar­ket value and raising the prospect of le­gal ac­tion from in­vestors. The Maersk ship­ping ty­coon fam­ily, the bank’s top share­holder with a 21-per-cent stake, ousted chair­man Ole An­der­sen and called Fri­day’s share­holder meet­ing to nom­i­nate Karsten Dy­b­vad, 62, and an­other board mem­ber. There were more than 600 share­hold­ers at the ex­tra­or­di­nary gen­eral meet­ing (EGM) in Copen­hagen on Fri­day which elected Mr. Dy­b­vad to the board. The mod­i­fied board of di­rec­tors then elected Mr. Dy­b­vad as the new chair­man.

Mr. Dy­b­vad was chief ex­ec­u­tive of the Con­fed­er­a­tion of Dan­ish In­dus­try, one of the coun­try’s most in­flu­en­tial lobby groups, for the past eight years and be­fore that had a long ca­reer as a gov­ern­ment of­fi­cial work­ing with min­is­ters from both the left and right of Dan­ish pol­i­tics, al­though his role did not in­volve over­sight of banks.

Be­sides restor­ing Danske’s im­age, Mr. Dy­b­vad is also tasked with finding a new chief ex­ec­u­tive to head the bank and en­sure po­ten­tial le­gal cases, not least in the United States, don’t drag at­ten­tion away from day-to-day busi­ness.

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