WestLB AG (derived from ''Westdeutsche Landesbank'', i.e. "Western German state Bank") was a European commercial bank based in Düsseldorf, Germany which was mainly owned by the German state of North Rhine-Westphalia. Landesbanks are a group of partly or wholly state owned banks unique to Germany. They are regionally organised and their business is predominantly wholesale banking. As of 30 June 2012, WestLB was downsized and Portigon Financial Services AG became the legal successor of WestLB.

History

The bank was incorporated on January 1, 1969. Total assets of the group were €288.1 bn as of December 31, 2008 (€292.1bn as of September 30, 2006) with operations spread over eleven countries in Europe, six countries in

The Americas The Americas, which are sometimes collectively called America, are a landmass comprising the totality of North America, North and South America. The Americas make up most of the land in Earth's Western Hemisphere and comprise the New World. ...

, six countries in Asia,

Australia Australia, officially the Commonwealth of Australia, is a Sovereign state, sovereign country comprising the mainland of the Australia (continent), Australian continent, the island of Tasmania, and numerous List of islands of Australia, sma ...

and South Africa, including significant investment banking operations in New York City, London, Luxembourg, Tokyo and Hong Kong. Düsseldorf-Friedrichstadt WestLB

WestLB was also the central institution for savings banks in North Rhine Westphalia. On August 30, 2002, WestLB was transformed into an

Aktiengesellschaft (; abbreviated AG, ) is a German word for a corporation limited by Share (finance), share ownership (i.e. one which is owned by its shareholders) whose shares may be traded on a stock market. The term is used in Germany, Austria, Switzerland (wh ...

(

joint stock company A joint-stock company is a business entity in which shares of the company's stock can be bought and sold by shareholders. Each shareholder owns company stock in proportion, evidenced by their shares (certificates of ownership). Shareholders are ...

) and on July 19, 2005, institutional liability and guarantor liability were abolished, allowing the company to concentrate on commercial operations. The public finance tasks of economic and structural development were transferred to the NRW.BANK which now operates as the Landesbank of North Rhine Westphalia. In February 2008, as the global credit crisis evolved, WestLB was allocated a 5bn Euros guarantee by North Rhine Westphalia and a group of local banks. The bank was reported to have suffered from exposure to investments in structured credits. In November 2008, the board of WestLB announced that it intended to obtain state loan guarantees and look at raising additional capital from the government of Germany specially set up bailout fund. There are also any ideas to merge the WestLB with other state owned banks or to rearrange segments of the WestLB in the German system of state owned banks. In November 2009, 85 billion in problem assets were transferred from WestLB to a winding up agency called Erste Abwicklungsanstalt (EAA), colloquially also called '

bad bank A bad bank is a corporate structure which isolates illiquid and high risk assets (typically non-performing loans) held by a bank or a financial organisation, or perhaps a group of banks or financial organisations. A bank may accumulate a large por ...

'. As per 30 June 2012, the brand WestLB was given up and the remaining company continued to operate under the name of Portigon Financial Services AG. Besides, EAA and another organisation under the roof of Hessian and Thuringian Landesbank Helaba are dealing with the aftermath of the quasi bankruptcy and carrying on with core functions of the former WestLB.

Stockholders

Stockholders on May 10, 2009 * 30.862% NRW.BANK (also partly owned by North Rhine-Westphalia) * 25.032% Sparkassen- und Giroverband

Rheinland The Rhineland (german: Rheinland; french: Rhénanie; nl, Rijnland; ksh, Rhingland; Latinised name: ''Rhenania'') is a loosely defined area of Western Germany along the Rhine, chiefly its middle section. Term Historically, the Rhinelands ...

* 25.032% Sparkassen- und Giroverband Westfalen-Lippe * 17.766% North Rhine-Westphalia

TWG suspicions

In January 2001 after West LB had notified banking investigators about very large sums moving between offshore vehicles and Trans World Group accounts at West LB, Düsseldorf prosecutors uncovered DM15 billion ($7 billion) had passed through West LB,

Commerzbank Commerzbank AG () is a major German bank operating as a universal bank, headquartered in Frankfurt am Main. In the 2019 financial year, the bank was the second largest in Germany by the total value of its balance sheet. Founded in 1870 in Hambur ...

Dresdner Bank Dresdner Bank AG was a German bank and was based in Frankfurt. It was one of Germany's largest banking corporations and was acquired by competitor Commerzbank in May 2009. History 19th century The Dresdner Bank was established on 12 Novemb ...

, and Deutsche Bank.

References

External links

* * * {{DEFAULTSORT:Westlb Landesbanks Companies listed on the Frankfurt Stock Exchange Companies based in Düsseldorf 1969 establishments in West Germany Banks established in 1969