Osnabrück fears 14 million euros at Greensill Bank | 05.03.21

OSNABRÜCK (dpa-AFX) – The city of Osnabrück fears 14 million euros due to a time deposit business with the Bremen Greensill-Bank, which is in turmoil and has now closed. The city invested 11.5 million euros in November due to the good rating at Greensill, said the city’s CFO, Thomas Fillep, on Friday. There were also two other smaller investments in the millions at Bremer Bank. The money was invested as a fixed-term deposit and should have been repaid in April.

On Wednesday, the financial supervisory authority Bafin closed the Greensill Bank AG in Bremen because of the threat of over-indebtedness. The bank, which belongs to the British-Australian financial conglomerate Greensill, was closed to customers with immediate effect. The Bremen public prosecutor’s office has initiated an investigation. In times of zero and negative interest rates, Greensill Bank offered overnight and fixed-term deposits with unusually high savings rates.

If the supervisory authority establishes the event of compensation, the deposit protection fund of the private banks steps in for funds from private individuals. In addition to the statutory deposit guarantee, private banks have filled another pot on a voluntary basis. Since October 1, 2017, however, the federal, state and local governments as well as certain investment firms no longer benefit from this voluntary deposit protection offered by private institutions. According to earlier information from the City Council, municipalities largely determine their investment strategies themselves.

“No proper businessman is immune to active fraud, which can only be committed with great criminal energy,” said Fillep. He criticized the banking regulator Bafin, which reportedly carried out a special audit of the bank in September and October 2020. “A note to the municipalities, for example via the municipal umbrella organizations, would have been enough that we would not have done any more business with this bank at first,” said Fillep. The city now wants to examine legal steps, including against financial advisers from the Kommune./eks/DP/mis


Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.