Deutsche Bank shares drop to new all-time low after report ties it closer to Danske scandal

Alex Daniel
Follow Alex
Serious Fraud Office Probe Deutsche Bank Over Securities Sales
Deutsche Bank shares stood at €7.74 this afternoon (Source: Getty)

Deutsche Bank shares were down again this afternoon on claims that it processed €31bn more of questionable funds than previously thought on behalf of Danske Bank.

Last month, Danske whistleblower Howard Wilkinson claimed a major European lender was involved in processing up to $150bn (£117bn) in suspicious payments.

Today, the Financial Times reported Deutsche also processed another €31bn, according to an internal memo seen by the paper.

The report alleges that Deutsche was behind the processing of more than 80 per cent of the €200bn laundered by Danske, including the original $150bn.

Wilkinson also slammed British company structures last month for allegedly covering up money laundering activities.

He said limited liability partnerships and Scottish liability partnerships “have been abused for years” at a European Parliament public hearing in November.

The Danske scandal has already prompted the resignation of the bank's former chief executive, Thomas Borgen, who had previously headed the bank's international operations, after an investigation uncovered 6,200 suspicious accounts on the books.

Deutsche now faces pressure on multiple fronts, with the alleged Danske Bank scandal on one hand, while German police raided its offices for alleged links to the so-called Panama Papers revelations on the other.

Shares fell to €7.90 on Wednesday before rallying, but dropped again today to stand at €7.74 this afternoon.

Deutsche Bank declined to comment.