- Danish bank is second-worst European stock, after Deutsche
- Danske Bank is at the center of a $230 billion investigation
The two European bank stocks faring worst on Thursday have one big thing in common: money laundering allegations.
Danske Bank A/S, which is at the center of one of Europe’s worst ever dirty money cases, fell as much as 3.8 percent in Copenhagen. Investors started selling after learning that Deutsche Bank AG’s offices had been raided by police in connection with a separate laundering probe. It fell as much as 4.9 percent.
Though German prosecutors said the Deutsche raid was tied to revelations in the Panama Papers and not to anything linked to the Danske case, the headlines were enough to unsettle shareholders in Denmark’s biggest bank.