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Nordea CEO: I should have stayed in rented flat

Nordea CEO: I should have stayed in rented flat

Published: 10 Nov 2011 08:59 GMT+01:00
Updated: 10 Nov 2011 08:59 GMT+01:00

Christian Clausen, CEO of Nordic banking giant Nordea, has responded to criticism of the bank's purchase of a 22.5 million kronor ($3.4 million) flat for him in Stockholm, saying that had they anticipated the outrage, they would have acted differently.

"We probably would have continued with a rental flat," he said to the Svenska Dagbladet (SvD) daily and confessed to be "shaken" by the protest storm engulfing Nordea.

Sweden's finance minister Anders Borg on Wednesday urged Nordea customers to change banks if the flat purchase had caused them to lose faith in the firm in which the Swedish state has an ownership stake.

"What has happened doesn't increase confidence," Borg said at a press conference on Wednesday.

Svenska Dagbladet reported last week that Nordea had purchased the 256-square-metre flat in central Stockholm at a time when the bank is set to make around 2,000 staff redundant.

The bank is furthermore planning to invest another 10 million kronor to renovate the flat, which is currently being used as office space.

The bank defended the purchase of the apartment, arguing it was a decision taken by the Nordea board of directors, something disputed by two union representatives who sit on the board.

According to union representative Steinar Nickelsen, who has been on the board since 2007, the question of purchasing a flat for Clausen was discussed, but not such a large and stately property as the one which was eventually purchased.

“It sends the wrong signals to spend so much money on an apartment when Nordea finds itself in its current situation with huge personnel reductions. We should have never made the purchase,” he told SvD.

TT/The Local/pvs (news@thelocal.se)

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Your comments about this article

09:40 November 10, 2011 by Mib
Money talks and so here we have a Response from tje Company to show emphathy with their customers to convince them not to move to another bank. Yet, they still continue with the plan. Just like politicians, they have lost touch and that is confirmed by their statement that they didn't expect such a response in the media etc. Even a donkey could have told them that.

The day Managers, Directors....people in power and paid bonuses based on real medium to long term performance and not based on a few people in a boys club pickung a figure from the air that has no relation to performance. They get paid bonuses for just doing the job and even get rewarded when they fail!

I'm happy for people to get paid for delivering higher profits and creation of jobs. Steve Jobs is one example. He was never in it to avhieve great wealth driving Ferraris etc. He loved his job and wasn't trying to get as much money as possible, otherwise he would have been a lot richer than 7 billion!
10:13 November 10, 2011 by duncs
So what. Real estate is an investment. why keep renting and throwing away their customers money when they can invest it in a property. i guarantee they will make a nice profit whenever the apartment is sold.
10:51 November 10, 2011 by jonathanjames61
Turn the flat to the Coporate hesd office,

what a coprate fraud,the rich getting richer and the poor getting poorer,one day all this will end,when your paper called money will be usellles go visit the graveyard and tell me if flats worth 22 mil when you lay six feet below .man never thinks what a cray world.Give me 22 million and I will turn my village into a city.
13:49 November 10, 2011 by old jack
Re #3, A lot of rich people are greedy. A lot of poor people create more children than they can care for. There's problem behavior on both ends of the spectrum.
15:20 November 10, 2011 by yourkidding
Wshoulrent than the rest of the politicians and wealthy Swedes? How do you think they got rich in the first place. The rich usually line their pockets at the expense of someone with less.
12:48 November 11, 2011 by Lavaux
Yes, Anders Borg, let's start a run on Nordea. That will do everyone a lot of good. What a pathetic moron!
13:14 November 14, 2011 by zooeden
3.4 million??? c mon, that is peanuts in the world of banking, people get outraged by this jesus fripping christ!!! OK if you tell me his towels are from John Galliano I could moreless understand the outrage!!!

3.4 is not acceptable, 1.7 is ok, get a life!
10:41 November 15, 2011 by Grokh
why doesn't he doe like everyone else and pay his own rent with the huge amount of money he gets paid ?

i really dont get these bankers, they get paid TONS and still want free rent and house.. they are completely out of touch with reality.

its like some american business man saying 700thousand dollars a month wasnt enough.
18:26 December 2, 2011 by rumcajs
A long time ago, I said to my wife to check something in her car. She said that I shouldn't get my nose in her things and my answer was: "As long as I'm the one who'd have to get you outta trouble and then fix or take the car to the garage my self, oooohhh yes I get my nose in your things!!!"...... SAME CRAP!!! When there's a crisis that w***er will keep his hell huge salary and his posh flat and we'd have to solve the problem with our 10 - 15 k sek and living iin a rented 40 square m. flat or even a room in a shared flat.!!!!

Banks should be even more controled that public institutions like the gov for example. They use the excuse of being "private" for doing what ever they want, but when something goes wrong, it's EVERYBODY'S problem!!!

I'm fed up of them!!!!
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