The largest financial scandal ever has arrived at the shores of Denmark. It involves money laundering at the Estonian branch of
Danske Bank; the largest bank in Denmark. The story was first brought to daylight by Danish newspaper
Berlingske in collaboration with journalists from the Russian newspaper
Novaya Gazeta in March 2017:
Laundered billions poured through Danish banks
Recently it has received widespread media attention, as the reported numbers have grown to a somewhat astronomical size. Wednesday Danske Bank announced the conclusion of their investigation in a
press release. The CEO (Thomas Borgen) also announced he would be stepping down voluntarily. Here a few of the recent articles regarding the case from the WSJ and others:
Sep20 WSJ:
Denmark Reopens Investigation into Russia-Linked Money Laundering Case
Sep19 Reuters:
Danske Bank CEO quits over $234 billion money laundering scandal
Sep19 Guardian:
Danske Bank chief resigns over €200bn money-laundering scandal
Sep19 NYT:
Danske Bank Says Billions May Have Been Laundered at Single Branch
Sep19 CNBC:
Danske Bank CEO quits in a $234 billion money laundering scandal
Sep14 WSJ:
U.S. Probes Danske Bank Over Russian Money Laundering Allegations
The Danish and Estonian Financial Services Authorities released a
joint statement in May and the former has
commented on the case and
commented on the investigation by Danske Bank.
I thought it would be beneficial to myself and others to get a grasp of just how big Danske Bank is, so I created
1) a figure showing the size of Danske Bank compared to other Danish banks in terms of assets,
2) a chart showing the revenue over time of Danish banks,
3) a table showing the size of Danske Bank and other international money center banks relative to GDP and
4) a histogram showing Danske Bank contributing approximately DKK3b of DKK60b in corporate tax revenue in 2016. I think it's fair to say that the conclusion is that Danske Bank is
BIG relative to its peers and the Danish GDP.
| Country |
Name |
Assets (USDm) |
Assets / GDP (%) |
 |
JPMorgan |
2,533,600 |
13% |
 |
Bank of America |
2,281,234 |
12% |
 |
Wells Fargo |
1,951,757 |
10% |
 |
Citigroup |
1,842,465 |
10% |
 |
Danske Bank |
559,167 |
172% |
 |
Svenska Handelsbanken |
315,505 |
59% |
 |
Skandinaviska Enskilda Banken |
291,858 |
54% |
 |
Swedbank |
252,296 |
47% |