Landesbank Baden-Württemberg

Landesbank Baden-Württemberg
Public bank
Industry Financial services
Founded 1 January 1999 (1 January 1999)
Headquarters Stuttgart, Germany
Key people
 Hans-Jörg Vetter
Products Investment banking, Commercial banking, Retail banking, Private banking, Asset management
Revenue $21 billion (2010)
Owner Savings bank Association of Baden-Wuerttemberg (41%)
Baden-Württemberg (25%)
Stuttgart (19%)
Landesbeteiligungen Baden-Württemberg (14%)
Landeskreditbank Baden-Württemberg (2%)
Number of employees
 13,369 (December 31, 2008)
Website www.lbbw.de

Landesbank Baden-Württemberg (LBBW) is a parent company of three commercial banks and the Landesbank for some Federal States of Germany. As of 2017, it is Germany's biggest state-backed landesbank lender.[1]

History

On 1 January 1999, Landesbank Baden-Württemberg (LBBW) was formed through the merger of SüdwestLB, Landesgirokasse, and the commercial banking business of L-Bank.

On 1 August 2005, Baden Württembergische Bank (BW-Bank) was incorporated into LBBW as a legally dependent institution under public law. Also as a legally dependent institution under public law, the former Landesbank Rheinland-Pfalz was integrated in the LBBW Group on 1 July 2008 under the new name Rheinland-Pfalz Bank. In 2007, the state governor of Baden-Württemberg, Günther Oettinger, announced that LBBW would pay an initial 250 million euros, or $342 million, for its competitor Sachsen LB;[2] on 1 April 2008, LBBW re-organized its activities in Central Germany (Thuringia, Saxony-Anhalt and Saxony) under the umbrella of Sachsen Bank.

Today, LBBW is a full-service and commercial bank and central bank for savings banks in Baden-Württemberg, Rhineland-Palatinate and Saxony. The company focuses on industrial technologies, information technology, software, telecommunication, innovative services and life science. It prefers to invest in Southern Germany, but also considers investments in other regions of Germany, Austria and Switzerland.[3]

During the financial crisis of 2007–2008, LBBW took a state bailout and reduced its portfolio of toxic assets to 3 billion euros by 2014 from 95 billion in 2008.[4]

Controversy

In 2015, an LBBW subsidiary in Switzerland agreed with the U.S. Department of Justice to pay a penalty of $34,000 to avoid possible prosecution for helping U.S. account holders conceal assets from the Internal Revenue Service and evade taxes. The subsidiary, LBBW (Schweiz) in Zurich, had previously held 35 U.S.-related accounts with $128 million in assets under management since August 2008.[5]

Another LBBW subsidiary, LBBW Luxemburg S.A., is engaged in litigation against the American bank Wells Fargo as of 2012.[6]

References

  1. ↑ Andreas Kröner (February 16, 2016), Former Deutsche Bank exec Neske to head LBBW- sources Reuters.
  2. ↑ Nicola Clark (August 27, 2007), Mortgage Crisis Forces Sale of German Bank New York Times.
  3. ↑ "LBBW Venture Capital GmbH: Private Company Information - BusinessWeek". investing.businessweek.com. Retrieved 2 March 2011.
  4. ↑ Arno Schuetze (November 12, 2014), Germany's LBBW clears out toxic assets, profit rises Reuters.
  5. ↑ Karen Freifeld (May 28, 2015), U.S. reaches deals with four more banks under Swiss program Reuters.
  6. ↑ Mark Calvey (October 2, 2012), "German bank sues Wells Fargo alleging $1.5 billion securities fraud", San Francisco Business Times, retrieved November 6, 2012


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