SHARE
COPY LINK

NORDEA

Nordea CEO: I should have stayed in rented flat

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.

Nordea CEO: I should have stayed in rented flat

“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.

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.

BANK

Police to investigate Nordea bank over money laundering

Danish police will investigate the Swedish bank Nordea after a year-long probe by regulators into money laundering led to "criticism" of its procedures, the bank said Friday.

Police to investigate Nordea bank over money laundering
Photo: Marcus Ericsson / TT

Detectives will examine how money laundering rules were followed at the bank's Danish subsidiary and could result in “sanctions”, Nordea said in a statement.

“We realize that we initially underestimated the complexity and the time it takes to change our procedures,” said Nordea chief executive Casper von Koskull.

The bank added that 850 Nordea employees are currently involved in the fight against money laundering which the bank plans to increase to 1,150 by the end of the year.

In May 2015 the bank was fined 50 million kronor (€5.4 million euros) – the maximum possible – by Swedish regulators who accused Nordea of “not following money laundering rules for several years” and failing to “evaluate the risks of (doing business with) certain clients”.