Bankers Association wants to set up bad bank

The Federation of Private Banks (BdB) wants to establish its own bad
bank. Currently the association is looking for ways to obtain a
banking license for its affiliated deposit insurance fund. This could
eventually lead to the BdB in distress trapped institutions with their
own people.

The Federation of Private Banks will establish a bad bank - it still
lacks the license.
FRANKFURT / LONDON. With an implementation is yet to pay this year, it
said in financial circles. In the projects are still numerous tax and
legal aid issues to address. The BdB would not comment on the plans.
Crucial to the plans of the Association is reportedly the Dusseldorf
mortgage bank that's been almost two years with the Deposit Protection
Fund of the BdB, although this in April 2008, the Institute wanted to
take over temporarily. Such a situation is both anti-tax and legal
problems, it said. It also lacks the staff to lead the bank over a
long period.
License of the bank Wölbern could be mobilized
The acquisition of Düsseldorf by the mortgage bank deposit insurance
fund had also engaged the lawyers. The district court of Düsseldorf
dismissed a lawsuit last week, the Wiesbaden banking family Schuppli
damages in the amount of € 499 million. Also gave the civil division
of the "counterclaim" instead of the Deposit Protection Fund: The
86-year-old Wolfgang Schuppli the financial institution had made two
years ago for the symbolic price of four euros, sales, however,
challenged later.
About the construction of his own bad bank experts might in future be
put to such reorganization cases - either on loan from member
institutions of the Association or by the deposit insurance fund
itself that would give the Association or may be a long breath and
better ways to rehabilitate captured institutes on their own. "It is a
structured settlement of cases, that's the whole point of the
exercise," said an insider. The Fund has approximately 180 banks.
One option that is currently being discussed, is the banking license
of the Hamburg banking house Wölbern, the deposit insurance fund as
well as the financial crisis had to use for such association's own bad
bank. Wölbern was captured in April 2009. The Hamburg-based private
bank M.M. Warburg & Co. had taken over parts of the retail business,
the rest of the institute, however, remained hanging on the deposit
insurance fund.