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FinCEN Files and corona are pushing stock markets deep into the red

21 september 2020

10:41

Investors are concerned about a report on bank money laundering scandals and the threat of tougher corona measures in Europe.

The stock markets on the old continent are getting hit hard: they lose an average of 2.3 percent. This is what the European stock markets experience

their worst day since July.

The reason for the price falls are the so-called FinCen Files, in which De Tijd also participates. The classified American documents show that there were more than 2,100 reports of suspicious money flows that banks made to the American anti-money laundering cell FinCEN. The leaked documents date back to 2008, but were mainly drawn up between 2011 and 2017.

The news puts pressure on European bank stocks, which are on average 4.7 percent in the red. The worst blow is for the Bel20 member ING

which is no less than 8.7 percent lower. ING Bank Slaski, the Polish arm of ING, is said to have helped his customers to funnel and launder money out of Russia for years. KBC Securities responds as follows: ‘A new money laundering case, a new country (after the Netherlands, Italy….). We sympathize with the new CEO, ”says analyst Jason Kalamboussis. He also uses a purchase advice. ‘We believe these issues have been thoroughly addressed. The new CEO, Steven Van Rijswijk, has worked on new compliance rules. ‘ Furthermore, the British bank Barclays loses

nearly 6 percent and supplies Deutsche Bank

5.8 percent in.

Stricter corona measures

In addition to money laundering cases at banks, investors are also concerned about a possible tightening of the corona measures. Head of UK health, Chris Whitty, says the UK is at a ‘critical point’ and Germany’s Health Minister says the trend in the number of infections in Europe is ‘worrying’.

The corona concern is also noticeable on the stock markets, because there is one sector that is doing even worse than the banks and that is travel stocks. The British International Consolidated Airlines Group (IAG)

gets a sacrifice of more than 12 percent. Also the cruise operator Carnival

it has to pay for it and suffers a loss of 8 percent. The German Lufthansa is also located

in a 7.5 percent air bag.

Travel stocks are very sensitive to developments on the corona front. Due to the outbreak of the pandemic, a large number of flights have been canceled to prevent the spread of the virus. In addition, people are less willing to take the plane due to the risk of contamination with the virus. Sailing on a cruise is certainly not an option as long as there is no vaccine for the virus.

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