Spain: Banks exposed to Gowex fraud

JPMorgan Chase and Danske Bank funds are among investors exposed to Let’s Gowex, the Spanish start-up that is filing for insolvency after saying it falsified accounts for four years, it emerged yesterday. JPMorgan’s Euroland Focus fund had 2.9 percent of its holdings invested in Gowex as of May 31, while 2 percent of the bank’s Europe Focus was in the stock. Danske’s Europe Absolute fund had 2.7 percent of its portfolio invested in Gowex as of June 30. Gowex boss Jenaro Garcia resigned at the weekend, taking responsibility for the accounting fraud. Gowex shares fell 60 percent after a report last week by Gotham City Research said the firm inflated revenue. – Bloomberg