On Monday, the number of banks deemed too big to fail in the euro zone will grow to eight from seven. The new arrival is Nordea Bank Abp, which is moving its headquarters to Helsinki from Stockholm.
The bank, whose $670 billion in assets are more than twice Finland’s gross domestic product, has made clear its move was driven by regulatory considerations and a wish to be inside the European banking union.
“We’ll be in the core of Europe,” Chief Executive Officer Casper von Koskull told reporters at a recent breakfast meeting in Stockholm. “I think it’s important that we also can influence Europe.”
Under von Koskull, who held several senior roles at Goldman Sachs before joining Nordea, the bank has sold off assets outside the Nordic region, including in Luxembourg, the Baltics and Russia.
In an interview with Bloomberg Television on Monday, von Koskull said growing through European acquisitions isn’t on his agenda.
“If you drive a bank for size itself, that’s not a good sign, for me at least,” he said. “European consolidation is something of course one follows, but it’s not on our agenda for the time being.”
Nordea is in the middle of a high-stakes transformation in which automated and digitized services are replacing human beings. Nordea says it needs to cut its workforce by about 6,000 people as part of this plan. Von Koskull has made clear he thinks the rest of the global finance industry needs to adopt a similar approach to stay competitive.
“Τoο big to fail” should be the “greed is good” of the 21st century…
None are to big to fail..
Not sure why a bank this big would get involved in the trashy eurozone..its their bed to sleep in though..
“The bank, whose $670 billion in assets are more than twice Finland’s gross domestic product, has made clear its move was driven by regulatory considerations and a wish to be inside the European banking union.”