LBBW’s headquarters in Stuttgart. Source: AP
HB STUTTGART. The specialist in securities lending going to the U.S. financial services Guggenheim Partners, LBBW said on Friday. The heavily hit by the financial crisis LBBW had begun several months ago with the sale of investments. The money the house is under pressure from the EU Commission stripped back to its core business.
The Bank will in future concentrate on the financing of German medium-sized enterprises and to shrink its balance sheet as compared to the end of 2008 (447.9 billion) by 40 percent. The EU Commission had made this a precondition that the billions of aid to be approved by the owner for LBBW.
The sale of LBBW Securities, LLC, which is still subject to the regulators, is expected to close in early April. About the details were not disclosed. The 100-percent subsidiary of LBBW has twelve employees and should be continued.