Danske Bank Suspends 6 Traders on 2009 Bond Market Manipulation
Danske Bank Suspends 6 Traders on 2009 Bond Market ManipulationDanske Bank Suspends 6 Traders on 2009 Bond Market Manipulation

Danske Bank has suspended four traders, and two of their bosses, after the firm and Danish regulator found that the group had violated internal rules and may potentially have manipulated bond market prices in 2009.

According to a statement by the Danish Public Prosecutor for Serious Economic and International Crime (SØIK), in connection with the bank's internal investigation, it accused Danske Bank of "price manipulation of a particularly serious nature."

This includes the six traders violating internal rules in relation to bond transactions between Realkredit Danmark and Danske Bank in the corporate mortgage bond market in 2009.

Danske Bank confirmed that it informed the Danish Financial Supervisory Authority (FSA) of the matter, and the FSA handed the matter over to SØIK.

As a result, SØIK is bringing accusations against Danske Bank, Realkredit Danmark and six employees.

"We consider the matter to be very serious and are cooperating fully with the authorities," said Thomas F. Borgen, Chief Executive Officer at Danske Bank in a statement.

Danske Bank confirmed in the statement that it found that in 2009, a total of four employees from the banking operation and Realkredit Danmark violated internal rules and may potentially have manipulated prices.

"The internal investigation found no evidence that staff members other than the four in question were involved in the transactions. However, in view of the further investigation of the matter, the four employees and their two superiors have been suspended," it added.