Banks Collapse on the Stock Market After An Investigation

HSBC, Deutsche Bank, ING … these big names in finance were roughed up on the stock market on Monday, after the revelations of a consortium of journalists who accuse these banking giants of having allowed dirty money laundering on a large scale.

In Frankfurt, Deutsche Bank plunged 7.31% around 11:21 am. Standard Chartered, also under the spotlight, dropped 4.87% in London.

In Hong Kong, HSBC shares hit a 25-year low, closing 5.33% to HKD 29.30. Besides the fact that the group was cited by the consortium of journalists investigation, it could face sanctions from Beijing as part of retaliatory measures against certain foreign countries.

Also cited in the case, ING Bank plunged 7.32% in Amsterdam. According to reports from the Dutch press, the bank’s subsidiary in Poland has helped clients send suspicious funds outside of Russia for years.

The French company Societe Generale is also targeted by the investigation, which accuses it of a lack of transparency vis-à-vis certain clients of its Swiss subsidiary SGPB. Its share yielded 4.13% in Paris.

In its survey carried out by 108 international media outlets from 88 countries, the International Consortium of Investigative Journalists (ICIJ) denounces the lack of regulation of the sector.

The “FinCEN Files” investigation is based on thousands of “Suspicious Activity Reports” (SARs) sent to the US Treasury Financial Police (FinCen) by banks around the world, but “kept out of the office. public view ”. According to the ICIJ, astronomical amounts of dirty money have passed for years through the world’s largest banking institutions.

These documents relate to $ 2 trillion in transactions between 1999 and 2017. They are believed to be money derived from drugs and criminal acts, or even misappropriated fortunes from developing countries.

The investigation points in particular to five large banks – JPMorgan Chase, HSBC, Standard Chartered, Deutsche Bank, and Bank of New York Mellon – accused of having continued to transit funds from suspected criminals, even after being prosecuted. or convicted of financial misconduct.

The suspicious activity reports, on which the consortium journalists relied, “are not declarations of crime or fraud, but alert to potential cases of economic crime”, argues UKFinance, the finance lobby British, in a statement sent to media.

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