Maintained silence about important information.
In the numerous court trials dealing with deeds done during the running of the Bavarian state bank BayernLB and during the running of the Carinthian state bank Hypo Alpe Adria, and deeds done during BayernLB’s purchase of Hypo Alpe Adria and the country of Austria’s subsequent buying it back for $1, there have been many accusations about improper sharing of important relevant information at key moments.
09 Apr 2014: Jail sentences will be appealed for Hypo Alpe Adria’s former manager Tilo Berlin (2 years), management board member Josef Kircher (3 years), bank head Wolfgang Kulterer (another year), and management board member Siegfried Grigg (3.5 years), for making improper secret side agreements with investors. The Hypo managers did not tell BayernLB that they’d tried to raise capital by selling preferred stock [Vorzugsaktien] with a put option guaranteeing the bank would buy back the stock at any time; i.i.u.c. Hypo’s balance sheet at the time BayernLB bought it described these shares as >100 million euros of Eigenkapital when they should have been classed as Fremdkapital, equity capital when they were in fact debt capital. BayernLB is saying this means the balance sheet and core capital data they were given before the 2007 sale weren’t accurate.
Now that several top managers have been found guilty of selling the bank with an inaccurate sales brochure, the Bavarian Landesbank is suing one of the smaller major shareholders in Hypo Alpe Adria at the time, a group of shareholding Hypo employees, for selling their stock to BayernLB while the brochure was wrong. If the Landesbank wins that lawsuit they can go on to sue the larger major shareholders who owned the bank then, such as the state of Carinthia.
07 May 2014: Former Hypo manager Tilo Berlin thinks BayernLB disguised their true intentions to him in 2008 and has filed charges against the BayernLB bankers and politicians who were running the Landesbank then; prosecutors in Carinthia and Bavaria are investigating his allegations of “serious fraud and suspected fraudulent acquisition of nonvoting share capital” [schweren Betrugs sowie des Verdachts des betrügerischen Erlangens von Partizipationskapital]. After buying Hypo Alpe Adria in 2007, the Austrians are saying, in 2008 the Bavarians tricked them into handing over 900 million euros in Austrian taxpayer-funded aid by pretending BayernLB would keep the troubled Hypo Alpe Adria when they were already planning to get rid of it. BayernLB bought Hypo Alpe Adria in 2007, knew already in 2008 that they’d made a big mistake, and got Austria to take it in 2009; in 2013 the long process for winding it down as a bad bank began.
07 May 2014: In addition to the above, concluded this Spiegel article, the game’s afoot with regard to Hypo Alpe Adria. But Spiegel provided no details.
“Furthermore, the bank was involved in criminal machinations, which Austrian investigators are processing in one of the biggest crime cases in the Alpine republic’s history.”
(VIH chh tigga in foam ats YONE fair SHVEEG en.)