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The CEO of Denmark’s largest bank resigned after a money laundering investigation found $230B worth of laundered transactions.
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<a style="color: #000000; font-family: 'Courier New',courier,monospace; font-size: 22px; font-weight: bold; letter-spacing: -1px; line-height: 100%; text-decoration: none;">
The Hustle
</a>
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Sponsored by
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<h2 style="font-size: 26px; font-weight: bold; line-height: 120%; margin-bottom: 16px; margin-top: 36px;">
<strong>
Danske CEO resigns in $234B laundering scandal -- the largest in European history
</strong>
</h2>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
CEO of Danske Bank Thomas Borgen resigned after investigators discovered the bank processed
<a style="color: #ed4d1f; text-decoration: none;">
$234B
</a>
worth of illegal payments in the largest money laundering scandal in European history.
</p>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
Borgen maintains he knew nothing about the post-Soviet-era crimes, but shares in Denmark’s largest bank plummeted as international regulators determine a punishment.
</p>
<h4 style="font-size: 18px; font-weight: bold; margin-bottom: 8px; margin-top: 16px;">
<strong>
The best place to weather a debt crisis is the laundromat
</strong>
</h4>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
From 2007 to 2015, Danske’s tiny Estonian branch processed $234B in payments (
<a style="color: #ed4d1f; text-decoration: none;">
26x
</a>
the Estonian government’s annual budget), mostly from non-Estonian accounts.
</p>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
About
<a style="color: #ed4d1f; text-decoration: none;">
250
</a>
of these foreign accounts belonged to ex-Soviet states laundering illicit funds. While Danske agents should have audited these accounts, 42 allegedly colluded with launderers.
</p>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
As neighboring banks limped through Europe’s debt crisis with returns ranging from 6% to 70%, Danske’s Estonian branch
<a style="color: #ed4d1f; text-decoration: none;">
delivered
</a>
returns of 402%. Over 9 years of laundering, Estonian funds accounted for up to
<a style="color: #ed4d1f; text-decoration: none;">
10%
</a>
of the Danske’s pre-tax profits.
</p>
<h4 style="font-size: 18px; font-weight: bold; margin-bottom: 8px; margin-top: 16px;">
<strong>
But karma is good at sniffing out dirty laundry...
</strong>
</h4>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
After Borgen took the reins at Danske in 2013, shares at the bank doubled. But since the scandal, Danske stock has fallen
<a style="color: #ed4d1f; text-decoration: none;">
50%
</a>
from its high, falling
<a style="color: #ed4d1f; text-decoration: none;">
8%
</a>
yesterday alone.
</p>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
Whether or not he was involved, Borgen covered Danske’s butt: Danske ignored whistleblower warnings in 2007 and 2010, and after authorities put Danske’s dirty drawers on display, he waited 3 years to launch an investigation.
</p>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
Danske has pledged
<a style="color: #ed4d1f; text-decoration: none;">
$274m
</a>
to a foundation to fight international financial crime, and Denmark plans to
<a style="color: #ed4d1f; text-decoration: none;">
tighten
</a>
laundering laws as the investigation continues (only 6.2k of 15k Estonian accounts have been audited).
</p>
<h4 style="font-size: 18px; font-weight: bold; margin-bottom: 8px; margin-top: 16px;">
<strong>
But the damage to Danske -- and Denmark -- isn’t done
</strong>
</h4>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
In addition to its stock losses, Danske has now
<a style="color: #ed4d1f; text-decoration: none;">
lowered
</a>
profit forecasts from $3.12B to $2.67B. But the penalties could be worst: Analysts estimate fines could range from
<a style="color: #ed4d1f; text-decoration: none;">
$6B
</a>
to
<a style="color: #ed4d1f; text-decoration: none;">
$8.3B
</a>
.
</p>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
Worst of all, since both the US and Estonia plan to launch criminal investigations, analysts expect reduced investment in the Danish economy. Denmark’s economy is roughly
<a style="color: #ed4d1f; text-decoration: none;">
the same size
</a>
as the sum of money laundered through Danske -- or at least it used to be.
</p>
</td>
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<td align="center" id="link" style="font-family: 'Courier New',courier,monospace; font-size: 26px; line-height: 120%; padding: 15px 0; text-align: center;">
Danske-ing with the devil
</td>
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<tr>
<td>
<table style="text-align: center; width: 100%;">
<tbody>
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<td>
<h2 style="font-size: 26px; font-weight: bold; line-height: 120%; margin-bottom: 16px; margin-top: 36px;">
<strong>
156-year old insurer John Hancock now requires customers to use health wearables
</strong>
</h2>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
John Hancock, a life insurance company that was founded during the Civil War,
<a style="color: #ed4d1f; text-decoration: none;">
announced
</a>
yesterday that it will require all policyholders to record fitness and health data using wearable devices.
</p>
<h4 style="font-size: 18px; font-weight: bold; margin-bottom: 8px; margin-top: 16px;">
<strong>
A new lease on life
</strong>
</h4>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
Hancock has offered “interactive policies” since 2015, offering discounts for healthy behaviors such as exercising or buying healthy foods -- saving itself money by paying out fewer claims.
</p>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
To run the new program, Hancock partnered with
<a style="color: #ed4d1f; text-decoration: none;">
Vitality Group
</a>
, a platform that already operates widely in South Africa and the UK. Vitality
<a style="color: #ed4d1f; text-decoration: none;">
claims
</a>
policyholders using wearables live
<em>
13 to 21 years longer
</em>
than “normally” insured couch potatoes.
</p>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
As other insurers roll out wearable discounts, critics warn that wearable incentives could disadvantage some people -- like anyone
<em>
with
</em>
an existing condition or anyone
<em>
without
</em>
an Apple Watch.
</p>
<h4 style="font-size: 18px; font-weight: bold; margin-bottom: 8px; margin-top: 16px;">
<strong>
But Apple is excited about health -- and healthy profit margins
</strong>
</h4>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
John Hancock offers financing for health wearables -- incentivizing companies like Apple and Fitbit to ramp up production to capitalize on insurance’s data-driven future.
</p>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
Last week, Apple
<a style="color: #ed4d1f; text-decoration: none;">
rolled out
</a>
a new Watch with an EKG designed to offer new health-monitoring options -- and just yesterday morning, Fitbit
<a style="color: #ed4d1f; text-decoration: none;">
launched
</a>
a program called Fitbit Care that provides medical coaching that integrates with doctors and insurers.
</p>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
So now more than ever, the wearables industry is really one to Watch: Forecasters
<a style="color: #ed4d1f; text-decoration: none;">
expect
</a>
the market for wearables to increase to $25B by next year, thanks in part to increased demand driven by insurers.
</p>
</td>
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If you ain’t fit, you ain’t sh*t
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<td>
<h2 style="font-size: 26px; font-weight: bold; line-height: 120%; margin-bottom: 16px; margin-top: 36px;">
<strong>
Amazon is on pace to become the 3rd-largest digital ad platform by the end of 2018
</strong>
</h2>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
According to a new eMarketer study, Amazon’s ad business will bring in $4.6B this year -- up an insane 60% from its previously projected $2.89B in March.
</p>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
<a style="color: #ed4d1f; text-decoration: none;">
<em>
Axios
</em>
</a>
reports that, in recent years, Amazon’s ad biz has swiftly expanded into one of its fastest growing sectors as they invest more in video, sales staff, and ad technology.
</p>
<h4 style="font-size: 18px; font-weight: bold; margin-bottom: 8px; margin-top: 16px;">
<strong>
Amazon knows a thing or two about scaling
</strong>
</h4>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
They’ve doubled down on video ads for some of their larger streaming platforms like Twitch --
<em>
and oh boy, do they have a bulletproof sales pitch for advertisers…
</em>
</p>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
Amazon claims to be more
<a style="color: #ed4d1f; text-decoration: none;">
“brand safe”
</a>
than the likes of the bigger, harder to regulate, social platforms like YouTube and Facebook (who’ve both dealt with
<a style="color: #ed4d1f; text-decoration: none;">
advertiser disputes
</a>
over questionable ad placement in the past year).
</p>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
That said, according to eMarketer, certain
<a style="color: #ed4d1f; text-decoration: none;">
“accounting changes”
</a>
at Amazon contributed to the bulk of their updated projection (on growth alone, the forecaster still puts Amazon’s market share in 4th place, ahead of Verizon).
</p>
<h4 style="font-size: 18px; font-weight: bold; margin-bottom: 8px; margin-top: 16px;">
<strong>
There’s still some catching up to do
</strong>
</h4>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
While the new projection puts them in front of Microsoft in US digital ad market share, 3rd place is still miles behind Google and Facebook.
</p>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
The powerhouses collectively control 58% of the market today, hauling in over
<a style="color: #ed4d1f; text-decoration: none;">
$64B combined
</a>
. However, some analysts believe Amazon’s market share is growing so astonishingly fast that it stands to close the gap.
</p>
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Divide and conquer
</a>
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<td>
<h2 style="font-size: 26px; font-weight: bold; line-height: 120%; margin-bottom: 16px; margin-top: 36px;">
<strong>
Salesforce launches new ‘corporate’ voice assistant, Einstein Voice
</strong>
</h2>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
These days, if you’re a tech giant and you
<em>
don’t
</em>
have a voice assistant in your roadmap, you may as well cancel your Q4 milestone of taking over the world.
</p>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
Just ask Salesforce. Yesterday, the company jumped into the smart speaker fold, unsheathing
<a style="color: #ed4d1f; text-decoration: none;">
Einstein Voice
</a>
, an extension of its Einstein artificial intelligence platform. The new product will allow sales managers to dictate memos and operate cloud services hands-free.
</p>
<h4 style="font-size: 18px; font-weight: bold; margin-bottom: 8px; margin-top: 16px;">
<strong>
Sheesh, first driving, now hands-free selling?
</strong>
</h4>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
<em>
What’s next?
</em>
Pizza-making?
<a style="color: #ed4d1f; text-decoration: none;">
(Too late)
</a>
.
</p>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
The bottom line is, nobody wants to type anymore, especially sales people, who need to be ready to close deals -- and bang sales gongs -- at any moment.
</p>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
But, this is more than just a transcribing tool. The bot also keeps calendars, allows employees to conversationally enter notes about meetings, and keeps track of daily briefings.
</p>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
According to
<a style="color: #ed4d1f; text-decoration: none;">
<em>
Venturebeat
</em>
,
</a>
Einstein’s most alluring feature from a marketing aspect is how easily customizable it is.
</p>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
The Einstein platform will soon allow customers to build their own, company-specific voice bots through the Einstein computing system.
</p>
<h4 style="font-size: 18px; font-weight: bold; margin-bottom: 8px; margin-top: 16px;">
<strong>
Why didn’t you think of that, Amazon?
</strong>
</h4>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
In a press release detailing the announcement of the pilot initiative, Salesforce pointed to a pair of studies showing that
<a style="color: #ed4d1f; text-decoration: none;">
47.3m Americans
</a>
use smart speakers, and estimate that number to grow by 10% over the
<a style="color: #ed4d1f; text-decoration: none;">
next 3 years
</a>
.
</p>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
And, as more people become dependent on their personal C-3POs at home, it’s only a matter of time before everyday is bring-your-bot-to-work day.
</p>
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<h2 style="font-size: 26px; font-weight: bold; line-height: 120%; margin-bottom: 16px; margin-top: 36px;">
<strong>
Get WiFi anywhere for $9/mo with
</strong>
<a style="color: #ed4d1f; text-decoration: none;">
<strong>
Skyroam
</strong>
</a>
</h2>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
Skyroam makes WiFi (seriously) simple: buy a WiFi hotspot, pay $9/mo for data, then surf, stream, or post from anywhere.
</p>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
15m customers around the world have already fallen head over email for Skyroam’s orange puck-shaped 4G LTE hotspot,
<a style="color: #ed4d1f; text-decoration: none;">
Skyroam Solis
</a>
, to solve a common travel headache: Finding reliable, secure mobile WiFi that won’t cost you next month’s rent.
</p>
<p style="font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 12px;">
Skyroam partners with 300 carriers worldwide, connecting you to the best network no matter the latitude. And with their new GoData plan, you get 1 GB of data to use anywhere -- on your morning commute, the café, or a tour of Singapore. Need more data? Buy anytime.
</p>
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You can even share your connection with
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5 devices
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simultaneously, so you’re free to use your entire digital fleet wherever you go -- not to mention the Solis hotspot
<em>
doubles
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as a 6200 mAh power bank.
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Hustle readers get
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40% off Skyroam Solis WiFi hotspot
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Wifi wanderlust this way →
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things you should...
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<h4 dir="ltr" style="font-size: 18px; font-weight: bold; margin-bottom: 8px; margin-top: 18px;">
STREAM:
<span style="font-weight: normal;">
Season 5 of “The Great British Baking Show,” Netflix
</span>
</h4>
<p dir="ltr" style="border-bottom-color: #dddddd; border-bottom-style: solid; border-bottom-width: 1px; font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 16px;">
We know, we know. Not what you’d expect from our ‘edgy’ newsletter, but the wholesomeness of this show warms our cold, dead hearts. Season 5 features two new hosts, a new judge, and more signature British politeness.
<br/>
<a style="color: #ed4d1f; font-size: 14px; font-weight: bold; line-height: 200%; text-decoration: none;">
THAT SHOWSTOPPER CHALLENGE THO →
</a>
</p>
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<h4 dir="ltr" style="font-size: 18px; font-weight: bold; margin-bottom: 8px; margin-top: 18px;">
DIP:
<span style="font-weight: normal;">
A chip in this “bitchin’” almond spread, $5.99
</span>
</h4>
<p dir="ltr" style="border-bottom-color: #dddddd; border-bottom-style: solid; border-bottom-width: 1px; font-family: arial, sans-serif; font-size: 15px; line-height: 120%; margin: 0; padding-bottom: 16px;">
Take a fistful of almonds, secret seasoning, and throw them in a blender and you’ve got Bitchin’ Sauce. It’s like hummus’s older cooler cousin who rides a Harley, tastes like heaven, and swears like a sailor. The discovery of this sauce was an impulse buy, but it’s now an in-home staple.
<br/>
<a style="color: #ed4d1f; font-size: 14px; font-weight: bold; line-height: 200%; text-decoration: none;">
BOMBAY IS THE BEST FLAVOR →
</a>
</p>
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<h4 dir="ltr" style="font-size: 18px; font-weight: bold; margin-bottom: 8px; margin-top: 18px;">
RESERVE:
<span style="font-weight: normal;">
Your seat for The Hustle’s 2X New York, 15% off
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2X is hopping the continental divide. On September 26th, join us as we celebrate 8 badass women from different industries and disciplines as they share their personal stories with just 10 minutes on the clock. Come to laugh, cry, and network -- leave inspired. Click the link below to save 15% off the ticket price.
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THIS IS HOW WE DO STORYTIME →
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SPONSORED
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LEGITIMIZE:
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Your 3-person operation in the garage, 10% off
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That idea you had 3 months ago just made its first dollar. Congrats! Now it’s time to make it official. LegalZoom is on a mission to bring legal help to entrepreneurs of all shapes and wallet sizes. Form your business in the eyes of the law fast. Use code HUSTLE for 10% off (valid through 10/20/18).
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LABEL ME LLC →
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CONNECT:
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Anywhere, anytime with Skyroam Solis WiFi hotspot and GoData, $9/mo
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Jetsetting freelancers, airport FaceTimers, and chain emailers rejoice: There’s now a global 4G LTE WiFi hotspot for you. The Skyroam Solis hotspot connects up to 5 devices, has 16+ hour battery life, doubles as a power bank, and works in 300+ countries -- all for just $9/mo for 1 GB. Hustle readers get 40% off the hotspot when they buy 1 year of data, now through September 30th.
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CUT THE CORD →
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Well Acquainted, Dick Stusso
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. Easy listening for the waning days of BBQs.
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Zack Crockett
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NEWS WRITER
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Wes Schlagenhauf
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NEWS WRITER
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Conor Grant
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NEWS WRITER
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Kolby Hatch
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AD WRITER
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Lindsey “They call me Bot Dylan” Quinn
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MANAGING EDITOR
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Mia Culpa
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Self-Esteem Coach
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6 years, 12 months ago - news@thehustle.co
Good lord that’s a lot of money
The CEO of Denmark’s largest bank resigned after a money laundering investigation found $230B wor...