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Banks ignore customers' expected negative returns on investments

Several bank customers' savings are placed in bond funds that expect to yield a negative return after fees. The situation is as serious as the Danske Bank Flexinvest Fri scandal, professor claims.

Professor Carsten Tanggaard. | Photo: Daugaard Jens Henrik/Jyllands-Posten/Ritzau Scanpix

Danish banks are severely criticized for placing customers' savings in bond funds despite expectation for the funds to yield a negative return.

Banks have placed billions of euros in funds, which, according to a recent survey, are headed towards a negative return after customers settle the related fees, writes Danish media Finans.

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