Deutsche Bank hits a new record low

Investors in Deutsche Bank AG added the lender’s role in Danske Bank’s money laundering scandal to their list of worries about the Frankfurt-based lender.

A management shake-up, weak earnings and political turmoil in Italy and Turkey saw Deutsche Bank shares hit multiple lows this year.

Now, concerns about its involvement in Europe’s biggest money-laundering scandal are weighing on the stock after the key whistle-blower pointed a finger at the bank.

German supervisor Bafin is also seeking more information on its relationship with Danske, a person briefed on the matter said yesterday.

Danske Bank whistleblower Howard Wilkinson, who stunned Danish lawmakers Monday by saying he was offered hush money by the lender, estimated that more than half the $230 billion (Dh845 billion) in suspect funds it handled was funnelled through a lender that he didn’t name.

It was later identified by a person familiar with the matter as Deutsche Bank’s US unit. Germany’s biggest bank processed payments for Danske Bank in Estonia, but ended the relationship in 2015 after suspicious activity, a Deutsche spokesman said.