The EU Commission orders Germany to recover more than €3 billion and interest from public banks (Landesbanken capital transferts)

"German Landesbanken: Recovery of more than €3 billion, plus interest, from WestLB and six other public banks"* On 20 October 2004, the European Commission concluded its long-standing investigation of the transfer of public assets, in the 1990s, to seven German public banks (Landesbanken) by ordering Germany to recover €3 billion plus interest. The decisions end the probe of the aid to the Landesbanken which occupied the Commission for about 10 years and which culminated in a landmark agreement, in 2001, to abolish the state guarantees known under the term ‘Anstaltslast and Gewährträgerhaftung’ attached to the banks’ statute. At the beginning of the nineties, the introduction of the Own Funds and Solvency Ratio Directives required European banks to increase their capital adequacy ratios.

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Yvonne Simon, Elke Graeper, Martha Cambas, Stefan Moser, Annette Sölter, The EU Commission orders Germany to recover more than €3 billion and interest from public banks (Landesbanken capital transferts), 20 October 2004, e-Competitions October 2004, Art. N° 36857

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