Berlin bank scandal

under the citizen of Berlin bank scandal one understands the procedures around the local banking company Berlin, whose economic collapse loaded the capital financially. Remarkably here the strong entwinement of numerous politicians of the CDU /SPD is - coalition, above all however the citizen of Berlin CDU and thatCompany AUBIS, which belongs to two CDU members. Against formerly prominent members such as Klaus Ruediger Landowsky meanwhile because of acceptance of bribes and unfaithfulness one determines. The bank scandal led 2001 to the fall of the governing mayor Eberhard Diepgen and causes a part of the household state of distress, the SPD governing meanwhile/Party of Democratic Socialism - Senate to drastic shortening forces.

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beginnings

the banking company Berlin developed 1994 as Getting thing - society for the Landesbank Berlin, the citizens of Berlin hypotheken and mortgage bond bank as well as Berliner Bank. This construction was already disputed at the beginning strongly, since the Landesbank is a public institute, while the other two private-economical enterprises were. The Higher Labor Court Berlin judged 1995 (in one onlyfor formal reasons not become valid judgement) the Konstrukt banking company Berlin even as illegal.(Source:[1])

the citizens of Berlin banking company engaged itself in the subsequent years over again created or bought up subsidiaries and over credits in the building and real estate sector. Already two years after its establishment hadthe banking company the first adjustments of value of more than two billion DM make. While other banks saw commitments in Berlin already critical, the banking company continued to expand.

In order to obtain growth, real estate funds were also established for market conditions very favorable conditions. Thus there were high rent warranties (if the real estate should stand empty), an extremely long running time (25 and/or. 30 years) and at the end a repayment warranty. By the legal construction that getting thing was Land Berlin the last-finite defiency guarantee for these promises.

Over these funds the true situation of the bank was masked– Wertberichtigungen auf faule Kredite wurden vermieden, indem kritische Immobilien von den Kreditnehmern gekauft und in die Fonds verschoben wurden. The funds again were sold as safe plant at private investors. From credit risks became in such a way warranty risks, which did not continue to be noticeable to the state supervision of the banks obviously.

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Business partner and - methods

under the real estates, which were acquired after ideas by Manfred Schoeps and Christian Lauritzen by funds, were above all disk's buildings in the northeast federal territory. These became of the Aubis group, firm getting thing of the two prominent CDU - members Dr. Christian beginner and Klaus Wienhold, the indebted municipalities to favorable conditions bought. The means for this originated from a credit over 650 million DM, which the BerlinHyp assigned, although AUBIS had nearly no own capital funds.

When AUBIS came for the first time 1997 into financial distress, a real estate daughter of the banking company boughtUp and this assigned 4000 dwellings of the AUBIS the reorganization.1999 was refused further credits and the remaining 10,000 dwellings against the protest of the AUBIS were taken over.

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uncovering

although the problems in the year 2000 , spread authorities still optimism already accumulate themselves upwith positive business reports and expansion plans. Beginning of 2001 the first reports come over sham transactions, balance-cheat and financial difficulties into the press. Cause was the tried sales of the real estate daughter IBAG to a dummy firm on the dock one islands, which should be financed by credits of the banking company (in itself business).

In February the public prosecutor's office took up determinations, at the beginning of March stepped Klaus Ruediger Landowsky, which is considered as an architect of the banking company and as grey Eminenz of the citizens of Berlin CDU, of its post as a chief executive of the BerlinHyp back, later placed it also its posts in the citizens of Berlin CDUas well as in the Lower House for the order, since among other things the acceptance of 40.000 DM, presented in cash of the AUBIS, is accused to him. Center of the monthly was used a parliamentary committee of inquiry, which should light up the procedures around the banking company and AUBIS. Whether the death of the 32-jährigenEDP boss of AUBIS, Lars of olive Petroll, to 29. September 2001 erhängt in the citizen of Berlin Green forest was found, a suicide was, is subject to investigations.

In the further hectic rescue attempts begin, which lead however to nothing. In May it became clear that the banking company 2 billionEuro needs, in order to be able to continue their business. At this time in rapid succession break-downs took place into several buildings of the banking company, the determination authorities could however no connections determine.

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clearing-up and rescue attempts

to 16. June 2001 became a governing mayor Eberhard Diepgen byVote of no confidence fallen. A Red-Green transition senate under Klaus Wowereit took over the office business up to the new elections. In the following months gradually the extent of the violations of the law showed up. Thus for a long time and systematically losses were hidden over networks by stooges, risks from businesswith dubious contracts upon Land Berlin were shifted. For a selected circle of acquaintances (above all prominent one, members of the government parties CDU and SPD, bank manager as well as their circle of acquaintances) special funds were offered, whose conditions were still substantially better than those of the normal real estate funds. Further there were high compensationsand pensions for the dismissed bank managers as well as contracts with inadequate rents for bank-own mansions, which were used by the managers. Also the free renovation of several of these mansions came to the light.

At the beginning of the yearly 2002 the public prosecutor's office in dozens of cases determined. In the Green forest becamea AUBIS coworker dead found, the authorities proceeded from suicide, although it became later clear that the man with the committee of inquiry had co-operated and that the AUBIS had insight into confidential minutes of the meetings. In April the Lower House with the majority of the new SPD decided/Party of Democratic Socialism - Government that the country risks from the real estate business transfers at a value of 21.6 billion euro. An initiative, which wanted to bring this law by a referendum to case, was formed later. This did not become however in the autumn 2005 finally certified.

Up to the spring 2003strove the bank management unsuccessfully for a sales of the society, parallel to it measures of reorganization was introduced.

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effects on the financial situation of Land Berlin

the legal processing of the bank scandal runs still, but Land Berlin is through by Soforthilfen of 2 billion euro as well asthe assumption of the 21.6 billion euro risks meanwhile so well incompetent to act.

But if it had even given the banking company never, Land would be Berlin in a similar situation, since it spends further durably more moneys, than it takes. The entire incomes hand straight timesfor the personnel expenseses. In principle it did not create the country to develop after the omission of the subsidies into the Vorwendezeit a competitive economy.

The consequence is one „extreme household state of distress “, as the senate already determined by resolution in November 2002. The federation leaned inApril 2003 off to grant the country debt assistance. Thereupon Berlin in the autumn complaint submitted at the Federal Constitutional Court , in an explanation of the senate is called it, the country fulfills the criteria, how they were determined in the judgement to the household state of distress of the countries Saarland and Bremen 1992. One expectsitself assistance to the reduction of debts at height of 35 billion euro, with a decision is however not to be counted 2006 ago.

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see also

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of books

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Web on the left of

 

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