WestLB
Encyclopedia
WestLB AG is a European commercial bank based in Düsseldorf
in Germany
which is partly owned by the German state of North Rhine-Westphalia
. The letters LB in the name stand for Landesbank
. The Landesbanken are a group of state owned banks unique to Germany. They are regionally organised and their business is predominantly wholesale banking, however today the WestLB is no longer a Landesbank.
The bank was incorporated on January 1, 1969. Total assets of the group are €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, six countries in Asia
, Australia
and South Africa
, including significant investment banking operations in New York
, London
, Luxembourg
, Tokyo
and Hong Kong
.
(joint stock company
) and on July 19, 2005 institutional liability and guarantor liability was abolished, allowing the company to concentrate on commercial operations. NRW.BANK now operates as the Landesbank of North Rhine-Westphalia.
In February 2008, as the global credit crisis impacted, 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 German government's 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 West LB to a so called bad-bank, Erste Abwicklungsanstalt (EAA).
Düsseldorf
Düsseldorf is the capital city of the German state of North Rhine-Westphalia and centre of the Rhine-Ruhr metropolitan region.Düsseldorf is an important international business and financial centre and renowned for its fashion and trade fairs. Located centrally within the European Megalopolis, the...
in Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
which is partly owned by the German state of North Rhine-Westphalia
North Rhine-Westphalia
North Rhine-Westphalia is the most populous state of Germany, with four of the country's ten largest cities. The state was formed in 1946 as a merger of the northern Rhineland and Westphalia, both formerly part of Prussia. Its capital is Düsseldorf. The state is currently run by a coalition of the...
. The letters LB in the name stand for Landesbank
Landesbank
The Landesbanken in Germany are a group of state owned banks of a type unique to Germany. They are regionally organised and their business is predominantly wholesale banking...
. The Landesbanken are a group of state owned banks unique to Germany. They are regionally organised and their business is predominantly wholesale banking, however today the WestLB is no longer a Landesbank.
The bank was incorporated on January 1, 1969. Total assets of the group are €288.1 bn as of December 31, 2008 (€292.1bn as of September 30, 2006) with operations spread over eleven countries in Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
, six countries in The Americas, six countries in Asia
Asia
Asia is the world's largest and most populous continent, located primarily in the eastern and northern hemispheres. It covers 8.7% of the Earth's total surface area and with approximately 3.879 billion people, it hosts 60% of the world's current human population...
, Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
and South Africa
South Africa
The Republic of South Africa is a country in southern Africa. Located at the southern tip of Africa, it is divided into nine provinces, with of coastline on the Atlantic and Indian oceans...
, including significant investment banking operations in New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
, London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
, Luxembourg
Luxembourg
Luxembourg , officially the Grand Duchy of Luxembourg , is a landlocked country in western Europe, bordered by Belgium, France, and Germany. It has two principal regions: the Oesling in the North as part of the Ardennes massif, and the Gutland in the south...
, Tokyo
Tokyo
, ; officially , is one of the 47 prefectures of Japan. Tokyo is the capital of Japan, the center of the Greater Tokyo Area, and the largest metropolitan area of Japan. It is the seat of the Japanese government and the Imperial Palace, and the home of the Japanese Imperial Family...
and Hong Kong
Hong Kong
Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...
.
History
WestLB is also the central institution for savings banks in North Rhine-Westphalia. On August 30, 2002 WestLB was transformed into a AktiengesellschaftAktiengesellschaft
Aktiengesellschaft is a German term that refers to a corporation that is limited by shares, i.e. owned by shareholders, and may be traded on a stock market. The term is used in Germany, Austria and Switzerland...
(joint stock company
Joint stock company
A joint-stock company is a type of corporation or partnership involving two or more individuals that own shares of stock in the company...
) and on July 19, 2005 institutional liability and guarantor liability was abolished, allowing the company to concentrate on commercial operations. NRW.BANK now operates as the Landesbank of North Rhine-Westphalia.
In February 2008, as the global credit crisis impacted, 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 German government's 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 West LB to a so called bad-bank, Erste Abwicklungsanstalt (EAA).
Stockholders
Stockholders on May 10, 2009- 30.862% NRW.BANK (also partly owned by North Rhine-Westphalia)
- 25.032% Sparkassen- und GiroverbandDeutscher Sparkassen- und GiroverbandDeutscher Sparkassen- und Giroverband is the German association of saving banks. It was founded in 1924 by the merger of Deutscher Sparkassenverband and Deutscher Zentral-Giroverband. The headquarter is located in Berlin since 1999, having previously been located in Bonn.-Presidents:*Ernst...
RheinlandRhinelandHistorically, the Rhinelands refers to a loosely-defined region embracing the land on either bank of the River Rhine in central Europe.... - 25.032% Sparkassen- und Giroverband Westfalen-Lippe
- 17.766% North Rhine-Westphalia