Authorities raid DnB NOR
 Two DnB NOR employees charged with insider trading were being questioned by Økokrim at the bank's headquarters Thursday afternoon. PHOTO: BJØRN SIGURDSØN/SCANPIX Lawyer Cato Schiøtz claims his client isn't guilty of any securities violations. PHOTO: MORTEN HOLM/SCANPIX |
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The raid at DnB NOR's offices in the Aker Brygge complex on Oslo's waterfront followed a week of allegations that DnB NOR engaged in insider trading.
DnB NOR is suspected of having advance knowledge of a government crisis plan aimed at boosting liquidity in the Norwegian banking sector. It sold government bonds on October 9 and 10, a few days before the plan was publicly unveiled on October 12. The bonds fell in value after the plan was revealed.
DnB NOR confirmed Thursday that Økokrim has filed charges against DnB NOR Bank and two persons employed by the bank's securities brokerage firm DnB NOR Markets.
Thomas Skjelbred of Økokrim told Norwegian Broadcasting (NRK) that he could also confirm that an investigation targeting DnB NOR and employees in the bank was underway.
Among those charged is Jørn Erik Pedersen, according to his lawyer, Cato Schiøtz. Pedersen leads the interest rates and currency desk for DnB NOR. Schiøtz told TV2 that Pedersen retains the "full confidence" of DnB NOR chief executive Rune Bjerke, who also has been under intense media pressure the past week because of his own close ties to Norwegian Prime Minister Jens Stoltenberg. They're old friends, and Bjerke had direct contact with the Office of the Prime Minister in the days leading up to the announcement of the bank crisis plan.
The board of DnB NOR announced later on Thursday that it retained confidence in Bjerke as chief executive.
Pedersen, meanwhile, was one of two persons who represented DnB NOR at a meeting with Norway's central bank on October 9. It's been alleged that they received information at that meeting that later was misused. Schiøtz said Pedersen strongly denies he has broken any laws. The other DnB NOR representative at the meeting, Olav Magne Reinen, has also been charged. Reinen is a senior broker at DnB NOR Markets.
Norway's financial regulatory agency Kredittilsynet has been investigating the allegations and concluded that their probe resulted in "reason for suspicion that a person in DnB NOR Markets has handled inside information in an improper manner."
Kredittilsynet thus found just cause to report the matter to Økokrim, which attempts to secure evidence and ultimately prosecutes such matters.
E24
Aftenposten English Web Desk
Nina Berglund
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