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BANK

Spanish bank to buy GE Money’s Nordic unit

Spanish bank Santander will pay €700 million to buy GE Money Bank AB, the consumer credit arm of GE Money Nordic with activities in Sweden, Denmark and Norway, it said on Monday.

Spanish bank to buy GE Money's Nordic unit
A Santander bank in Barcelona. Photo: AP
The purchase of credit activities in the Scandinavian region is an important step in the development strategy of Santander's consumer credit division, the bank's president Emilio Botin said in a statement.
   
The deal, worth the equivalent of $951 million, would broaden the division's geographical base and strengthen its position as leader on the European consumer credit market, he said.
   
The deal means that Santander Consumer Finance, which has a portfolio of consumer loans worth €8.9 billion, will acquire GE Money Bank's portfolio of loans worth €2.35 billion euros.
   
When the deal is completed, Santander Consumer Finance will have 1.2 million customers in Scandinavia, accounting for 17.0 percent of its total credit portfolio.

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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”.