UNI Europa Finance denounces share-swapping fraud and bank mismanagement in Europe

Friday 19 October 2018

Several banks headquartered in Europe have become embroiled in the latest banking scandal – share-swapping fraud. The so-called cum-ex transactions, which allow investors to exploit legal loopholes that enable multiple parties to claim a refund of taxes paid on share dividends, have been discovered in most of the European Banking Multinationals and now in Santander.

An investigation published by Correctiv, a German non-profit investigative journalism group, claim that taxpayers have been swindled out of approximately €55.2 billion.

Michael Budolfsen, President of UNI Europa Finance said, ‘When we see finance workers all over Europe struggling to serve customers, it is disgraceful to see how some of the biggest and most influential financial companies across the world have -allegedly – not only contributed to but rather stimulated fraud and theft of tax-payers’ money.’

Not only are local communities being cheated from funds that could be used in creating welfare and social growth, but this latest scandal is tarnishing the already delicate image of banks and bank workers.

‘Company greed has gone too far,’ continued Budolfsen, ‘I want to echo the words of the Danish Prime Minister by saying that these actions are “large-scale greed and we will pursue the culprits until the last krone is paid back”.’

It is clear that the banks’ management should not be the only ones in the firing line. The banks’ owners and big shareholders are also responsible for excessive demands for the return on investment. UNI Europa Finance therefore calls on European decision-makers to hold the big investors to account for the stark mismanagement of their banks.

‘To add insult to injury, a good majority of the banks in question are also the same banks that suppress trade union activity and collective bargaining, especially when outside of Europe,’ stated Angelo Di Cristo, Head of UNI Finance.

‘We demand that European decision-makers act to promote and strengthen collective bargaining in the finance sector, and protect the rights of finance workers.’ concluded Di Cristo.

UNI Europa Finance is calling for the finance sector to return to a sustainable infrastructure that ensures that citizens, workers and communities are large are not deprived of much needed funds by the greedy few.