January 29, 2020 / 7:41 AM / 22 days ago

Swedbank proposes board revamp after money laundering scandal

FILE PHOTO: A Swedbank sign is seen on the bank's building in Tallinn, Estonia October 3, 2019. REUTERS/Ints Kalnins

STOCKHOLM (Reuters) - Swedbank’s (SWEDa.ST) election committee proposed on Wednesday to replace half of the bank’s board members after a money laundering scandal that has rocked the lender and seen it lose around a third of its market value over the past 15 months.

The committee proposed re-election of chairman Goran Persson, a former Swedish prime minister. Persson was elected in the summer after both the chairman and the CEO had left the bank following a money laundering scandal stemming from the bank’s Estonian branch.

The election committee proposed five new members and said the new board would provide “both broad and deep banking experience as well as extensive knowledge of the challenges and

opportunities banking is facing”.

The committee proposed Bo Bengtsson, Goran Bengtsson, Hans Eckerstrom, Bengt Erik Lindgren and Biljana Pehrsson as new members.

Swedbank shares rose on Tuesday after newly appointed Chief Executive Jens Henriksson struck a confident note on the bank’s ability to cope with possible fines from the Swedish and Estonian financial watchdogs.

Reporting by Johan Ahlander; editing by Niklas Pollard

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