Landesbank Baden-Württemberg

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;{{cite news |last=Clark |first=Nicola |date=27 August 2007 |title=Mortgage Crisis Forces Sale of German Bank |url=https://www.nytimes.com/2007/08/27/business/worldbusiness/27german.html |website=[[The New York Times]] |access-date=2026-04-20 |language=en}} on 1 April 2008, LBBW re-organized its activities in Central Germany ([[Thuringia]], [[Saxony-Anhalt]] and [[Saxony]]) under the umbrella of Sachsen 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;{{cite news |last=Clark |first=Nicola |date=27 August 2007 |title=Mortgage Crisis Forces Sale of German Bank |url=https://www.nytimes.com/2007/08/27/business/worldbusiness/27german.html |website=[[The New York Times]] |access-date=2026-04-20 |language=en}} on 1 April 2008, LBBW re-organized its activities in Central Germany ([[Thuringia]], [[Saxony-Anhalt]] and [[Saxony]]) under the umbrella of Sachsen Bank.

By the [[2008 financial crisis]], LBBW had already grown to become the biggest and strongest of Germany's seven remaining independent public Landesbanken.{{cite news |last1=Luttmer |first1=Nina |last2=Simensen |first2=Ivar |date=28 November 2007 |title=LBBW faces €800m writedown |url=https://www.ft.com/content/e598e5e0-9dee-11dc-9f68-0000779fd2ac |website=[[Financial Times]] |access-date=2026-04-20 |language=en}}It nonetheless had to take a state [[bailout]] of 5 billion euros.{{cite news |last1=Tait |first1=Nikki |last2=Wilson |first2=James |date=15 December 2009 |title=EU gives go-ahead to LBBW revamp |url=https://www.ft.com/content/637ce700-e982-11de-be51-00144feab49a |website=[[Financial Times]] |access-date=2026-04-20 |language=en}} and reduced its portfolio of [[toxic asset]]s to 3 billion euros by 2014 from 95 billion in 2008.{{cite news |last=Schuetze |first=Arno |date=12 November 2014 |title=Germany's LBBW clears out toxic assets, profit rises |url=https://www.reuters.com/article/lbbw-results-idUSL6N0T22A420141112 |website=[[Reuters]] |access-date=2026-04-20 |language=en}} Similar to other public lenders, it opted for support from its regional state owner instead of drawing on help from [[SoFFin]], the federal government's bail-out scheme.{{cite news |last=Schäfer |first=Daniel |date=30 November 2008 |title=BayernLB set for €10bn bail-out |url=https://www.ft.com/content/41eb9908-bf01-11dd-ae63-0000779fd18c |website=[[Financial Times]] |access-date=2026-04-20 |language=en}} By 2009, the [[European Commission]] approved a [[restructuring]] plan which had the institution focus on its core regional banking businesses, curtail capital market and [[proprietary trading]] activities and shrink its balance sheet.{{cite news |last1=Tait |first1=Nikki |last2=Wilson |first2=James |date=15 December 2009 |title=EU gives go-ahead to LBBW revamp |url=https://www.ft.com/content/637ce700-e982-11de-be51-00144feab49a |website=[[Financial Times]] |access-date=2026-04-20 |language=en}}

By the [[2008 financial crisis]], LBBW had already grown to become the biggest and strongest of Germany's seven remaining independent public Landesbanken.{{cite news |last1=Luttmer |first1=Nina |last2=Simensen |first2=Ivar |date=28 November 2007 |title=LBBW faces €800m writedown |url=https://www.ft.com/content/e598e5e0-9dee-11dc-9f68-0000779fd2ac |website=[[Financial Times]] |access-date=2026-04-20 |language=en}} It nonetheless had to take a state [[bailout]] of 5 billion euros.{{cite news |last1=Tait |first1=Nikki |last2=Wilson |first2=James |date=15 December 2009 |title=EU gives go-ahead to LBBW revamp |url=https://www.ft.com/content/637ce700-e982-11de-be51-00144feab49a |website=[[Financial Times]] |access-date=2026-04-20 |language=en}} and reduced its portfolio of [[toxic asset]]s to 3 billion euros by 2014 from 95 billion in 2008.{{cite news |last=Schuetze |first=Arno |date=12 November 2014 |title=Germany's LBBW clears out toxic assets, profit rises |url=https://www.reuters.com/article/lbbw-results-idUSL6N0T22A420141112 |website=[[Reuters]] |access-date=2026-04-20 |language=en}} Similar to other public lenders, it opted for support from its regional state owner instead of drawing on help from [[SoFFin]], the federal government's bail-out scheme.{{cite news |last=Schäfer |first=Daniel |date=30 November 2008 |title=BayernLB set for €10bn bail-out |url=https://www.ft.com/content/41eb9908-bf01-11dd-ae63-0000779fd18c |website=[[Financial Times]] |access-date=2026-04-20 |language=en}} By 2009, the [[European Commission]] approved a [[restructuring]] plan which had the institution focus on its core regional banking businesses, curtail capital market and [[proprietary trading]] activities and shrink its balance sheet.{{cite news |last1=Tait |first1=Nikki |last2=Wilson |first2=James |date=15 December 2009 |title=EU gives go-ahead to LBBW revamp |url=https://www.ft.com/content/637ce700-e982-11de-be51-00144feab49a |website=[[Financial Times]] |access-date=2026-04-20 |language=en}}

In 2019, LBBW became one of six banks to be mandated by the [[Islamic Development Bank]] (IsDB) to raise $1.5 billion in five-year [[sukuk]].Davide Barbuscia (November 12, 2019), [https://www.reuters.com/article/islamic-dev-bk-sukuk/islamic-development-bank-hires-banks-for-green-euro-sukuk-idUSL8N27S3SZ Islamic Development Bank hires banks for green euro sukuk] ''[[Reuters]]''.

In 2019, LBBW became one of six banks to be mandated by the [[Islamic Development Bank]] (IsDB) to raise $1.5 billion in five-year [[sukuk]].{{cite news |last=Barbuscia |first=Davide |date=12 November 2019 |title=Islamic Development Bank hires banks for green euro sukuk |url=https://www.reuters.com/article/islamic-dev-bk-sukuk/islamic-development-bank-hires-banks-for-green-euro-sukuk-idUSL8N27S3SZ |website=[[Reuters]] |access-date=2026-04-20 |language=en}}

== Assets ==

== Assets ==

==Controversy==

==Controversy==

In late 2009, state prosecutors raided the Stuttgart headquarters of LBBW as part of an investigation into alleged breaches of trust in connection with the bank's [[subprime]] investments.Nikki Tait and James Wilson (December 15, 2009), [https://www.ft.com/content/637ce700-e982-11de-be51-00144feab49a EU gives go-ahead to LBBW revamp] ''[[Financial Times]]''. Several managers were later tried on accounting charges.Karin Matussek (February 6, 2014), [https://www.bloomberg.com/news/articles/2014-02-06/lbbw-managers-tried-on-subprime-securities-accounting-charges] ''[[Bloomberg News]]''.

In late 2009, state prosecutors raided the Stuttgart headquarters of LBBW as part of an investigation into alleged breaches of trust in connection with the bank's [[subprime]] investments.{{cite news |last1=Tait |first1=Nikki |last2=Wilson |first2=James |date=15 December 2009 |title=EU gives go-ahead to LBBW revamp |url=https://www.ft.com/content/637ce700-e982-11de-be51-00144feab49a |website=[[Financial Times]] |access-date=2026-04-20 |language=en}} Several managers were later tried on accounting charges.{{cite news |last=Matussek |first=Karin |date=6 February 2014 |title=LBBW Managers Tried on Subprime Securities Accounting Charges |url=https://www.bloomberg.com/news/articles/2014-02-06/lbbw-managers-tried-on-subprime-securities-accounting-charges |website=[[Bloomberg News]] |access-date=2026-04-20 |language=en}}

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 [[Zürich]], had previously held 35 U.S.-related accounts with $128 million in assets under management since August 2008.Karen Freifeld (May 28, 2015), [https://www.reuters.com/article/us-justice-department-swiss-banks-idUSKBN0OD26O20150528 U.S. reaches deals with four more banks under Swiss program] ''[[Reuters]]''.

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 [[Zürich]], had previously held 35 U.S.-related accounts with $128 million in assets under management since August 2008.{{cite news |last=Freifeld |first=Karen |date=28 May 2015 |title=U.S. reaches deals with four more banks under Swiss program |url=https://www.reuters.com/article/us-justice-department-swiss-banks-idUSKBN0OD26O20150528 |website=[[Reuters]] |access-date=2026-04-20 |language=en}}

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

Another LBBW subsidiary, LBBW Luxemburg S.A., is engaged in litigation against the American bank [[Wells Fargo]] as of 2012."calvey2012">{{cite news |last=Calvey |first=Mark |date=2 October 2012 |title=German bank sues Wells Fargo alleging $1.5 billion securities fraud |website=[[San Francisco Business Times]] |url=http://www.bizjournals.com/sanfrancisco/news/2012/10/02/wells-fargo-wachovia-litigation.html |access-date=2026-04-20 |language=en}}

|author=Mark Calvey |publication-date=October 2, 2012 |title=German bank sues Wells Fargo alleging $1.5 billion securities fraud |periodical=[[San Francisco Business Times]] |url=http://www.bizjournals.com/sanfrancisco/news/2012/10/02/wells-fargo-wachovia-litigation.html |access-date=November 6, 2012 }}

==See also==

==See also==