Baden-Württemberg Landesbank (abbreviated As "Baden-Württemberg Landesbank", LBBW) Is A Universal Bank And The State Bank Of Some German Federal States (Baden-Württemberg, Rhineland-Palatinate, Saxony). As Of 2018, It Is The Largest State-backed Landesbank In Germany.
LBBW Is A Full-service Commercial Bank And Central Bank For Savings Banks In Baden-Württemberg, Rhineland-Palatinate And Saxony. The Company Focuses On Industrial Technology, Information Technology, Software, Telecommunications, Innovative Services And Life Sciences. It Prefers To Invest In Southern Germany, But Is Also Considering Investments In Other Parts Of Germany, Austria And Switzerland.
Since The European Banking Regulation Came Into Effect At The End Of 2014, The LBBW Has Been Designated As An Important Institution And Is Therefore Directly Supervised By The European Central Bank.
History
On January 1, 1999, The Federal Bank Of Baden-Württemberg (LBBW) Was Formed By The Merger Of The Commercial Banking Operations Of SüdwestLB, Landesgirokasse And L-Bank.
On August 1, 2005, The Bank Of Baden-Württemberg (BW-Bank) Was Merged Into The Bank Of Baden-Württemberg Under Public Law And Became A Legal Subsidiary. On July 1, 2008, The Former Landesbank Rheinland-Pfalz Was Incorporated Into The Rheinland-Pfalz Bank (LBBW Group) As A Legal Subsidiary Under Public Law, Under The New Name Rheinland-Pfalz Bank. In 2007, Günther Oettinger, Governor Of Baden-Württemberg, Announced That LBBW Would Pay An Initial Fee Of 250 Million Euros (approx. 342 Million USD) For Its Competitor Sachsen LB; On April 1, 2008, LBBW Reorganized Its Activities In Central Germany (Thuringia, Saxony-Anhalt And Saxony) Under The Protection Of Saxony Bank.
By The Time Of The 2007-2008 Financial Crisis, The LBBW Had Grown To Become The Largest And Most Powerful Of The Seven Remaining Independent Public Landesbanken In Germany. Nonetheless, It Had To Accept A €5 Billion State Bailout And Reduce Its Toxic Asset Portfolio From €95 Billion In 2008 To €3 Billion In 2014. Similar To Other Public Lenders, It Opted For Support From Its Regional State Owners Rather Than Help From The Federal Government's Bailout Program, SoFFin. By 2009, The European Union Commission Approved A Restructuring Plan That Allowed The Agency To Focus On Its Core Regional Banking Operations, Reduce Capital Markets And Proprietary Trading Activities, And Shrink Its Balance Sheet. In 2019, LBBW Became One Of Six Banks Authorized By The Islamic Development Bank (IsDB) To Raise $1.50 Billion In Five-year Islamic Bonds.
Assets
LBBW Holds Stakes In Several Subsidiaries, Including:
- LBBW Asset Management
- MKB Mittelrheinische Bank
- Südfactoring
- Südleasing
- HSBC Trinkaus & Burkhardt (18.7%)
Dispute
In Late 2009, State Prosecutors Raided LBBW's Stuttgart Headquarters As Part Of An Investigation Into Alleged Breach Of Trust In The Bank's Subprime Mortgages. Several Managers Were Later Tried On Accounting Charges.
In 2015, A Swiss Subsidiary Of LBBW Reached An Agreement With The Department Of Justice To Pay A $34,000 Fine To Avoid Prosecution For Helping U.S. Account Holders Conceal Assets From The IRS And Evade Taxes. Since August 2008, A Zurich-based Subsidiary, LBBW (Switzerland), Previously Held 35 U.S.-related Accounts With $128 Million In Assets Under Management.
As Of 2012, Another Subsidiary Of LBBW, LBBW Luxemburg S.A., Is Suing U.S. Bank Wells Fargo
