Home / Business / Shares of European banks slide after money laundering allegations; Dow futures slide 300 points

Shares of European banks slide after money laundering allegations; Dow futures slide 300 points



Signage for HSBC (L) and Standard Chartered Bank (R) is displayed at each bank’s local office in Hong Kong on April 28, 2020.

anthony wallace / Agence France-Presse / Getty Images

Shares of major European banks fell Monday after reports were released that they continued to do business with clients suspected of money laundering and other wrongdoing.

The report, led by Buzzfeed News and including other media outlets around the world, was based on what are called suspicious activity reports submitted by banks to the U.S. Treasury, which had been collected for Congressional investigators to review the 2016’s President Donald Trump campaign. Banks by law are not authorized to comment on the communications they present.

German bank
DBK,
-6.13%

shares fell 4% as his money laundering vulnerabilities were known to his executives, according to the Buzzfeed report. Deutsche Bank said it learned from past weaknesses and said “we are a different bank now.”

Standard Chartered
STAN,
-4.67%
,
accused of doing business with a money laundering company for the Taliban, it fell by 3%. The London-based Asia-centric bank said: “The US and UK authorities have publicly acknowledged that the Group has undergone a complete and positive transformation in recent years.” Barclays
BARC,
-6.32%
,
Commerzbank
CBK,
-3.77%
,
Danske Bank
DANSKE,
-3.74%

and HSBC Holdings
HSBA,
-5.04%

were also mentioned in the report, as were several US banks.

The wider Stoxx Europe 600
SXXP,
-2.46%

it fell 1.7%, with losses for HSBC proving to be an anchor on the FTSE 100
UKX,
-3.16%
,
which fell by 2.3%. The German DAX
DAX,
-2.69%

and French CAC 40
PX1,
-2.62%

he also fell.

US Stock Futures
ES00,
-1.47%

fell, with futures on the Dow Jones Industrial Average
YM00,
-1.68%

lose 340 points. Last week, the high-tech Nasdaq Composite
COMP,
-1.07%

it fell by 0.6%, while energy and industrial stocks rose.

On the move in Europe were shares of the engine manufacturer Rolls Royce
RR,
-8.60%
,
which on Friday said it was considering raising up to £ 2.5 billion in new equity.

United Internet
UTDI,
-25.00%

shares plummeted by more than 20% after Telefonica Deutschland
O2D,
-4.38%

said in the negotiations it would increase wholesale costs. United Internet said it appealed to the European Commission on the matter.


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