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Post Info TOPIC: From Black Forest to Cologne, German towns fear Greensill losses


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From Black Forest to Cologne, German towns fear Greensill losses
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From Black Forest to Cologne, German towns fear Greensill losses

 

file-photo--logo-of-greensill-bank-is-pi

 

Bad Duerrheim, รวมโปรสล็อต a town of 13,400 people on the fringes of the Black Forest,
is one of many across Germany united by a shared anxiety, the possibility of losing
millions of euros invested with Greensill Bank.

 

The obscure Bremen-based private bank's owner Greensill Capital entered insolvency
this week after losing insurance coverage for its debt repackaging business.

 

Greensill Bank, meanwhile, was locked down by Germany's financial watchdog
last week with a warning of an imminent risk that its debt would become
unmanageable and a statement calling some of its financial accounts into question.
Greensill Capital said that the bank always sought external legal and audit advice
before booking any new asset.

 

"We have to find out what happened," Alexander Stengelin, a Bad Duerrheim official
told Reuters.

 

German towns have turned to alternative investments such as those offered by
Greensill Bank as European Central Bank efforts to prop up the wider economy
have resulted in so-called negative interest rates, with fees charged for savings.

 

Cologne, famed for its cathedral and perfume, and Wiesbaden, which is close to
Germany's financial capital Frankfurt, both say they consulted brokers on where
to park their cash.

 

The two, along with at least a dozen others, say they opted for Greensill to avoid
fees charged by other banks and encouraged by its once healthy credit rating.

 

The municipalities now fear their cash, largely invested at Greensill Bank in time
deposits with short maturities of several months, may be lost for good as they
are classed as institutional investors and therefore are not covered by a deposit
protection scheme for individuals.

 

Greensill Bank states this on its website but some cities are nevertheless calling
on the federal government to step in to cover any losses they may incur.
A Greensill spokesman declined to comment.

 

Town officials are now consulting with others in the same position and hope
to convene a video call on how to proceed.



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