BayernLB controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
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2023
Restitution of Kandinsky’s Colorful Life
A German advisory panel recommended restitution of Wassily Kandinsky’s 1907 painting Colorful Life to the descendants of the Jewish family from which it was taken. BayernLB announced that it would return the work.
2014
Hypo Alpe-Adria acquisition proceedings
Legal proceedings examined whether BayernLB overpaid for its 2007 acquisition of a majority stake in Hypo Alpe-Adria and whether improper payments were made in connection with the transaction. Former chief executive Werner Schmidt was convicted in 2014 in relation to the bribery allegations.
2011
Alleged corrupt payment in Formula One transaction
The bank’s former chief risk officer was arrested in connection with an alleged payment of approximately $50 million relating to BayernLB’s 2005 sale of a stake in Formula One motor racing.
2008
Mortgage-crisis losses and public rescue
BayernLB suffered multibillion-euro losses after investing heavily in US subprime and other structured mortgage securities. The episode led to executive turnover, political controversy and a capital injection and guarantee package from Bavaria.