The demise of the BayernLB
- A protocol, compiled from news reports -

Period covered (to date): 2005 - March 2010
Sources: Online articles of the Newspapers Süddeutsche Zeitung (in the main), FTD, Der Spiegel

BayernLB Background

Establishment of the BayernLB: 1972
Political affiliation: the CSU (Christian Socialist Union) was the only ruling party in the Bavarian parliament until September 2008. Since then the CSU is the senior partner in a coalition.
Owners of the BayernLB were the State of Bavaria, and the Union of Bavarian Savings Banks, each originally owning 50%. Today the bank is almost completely in the hands of the State.
Currently, the Board of Supervisors consists of 11 members, among them the Finance Minister, the Minister for the Interior, the Minister for Economy-Infrastructure-Transport, and a principal (undersecretary) of the Finance Ministry.
Homepage of the BayernLB

HGAA = the Austrian Bank   Hypo Group Alpe Adria International AG. The BayernLB purchased a majority stake in 2007; looking back - under dubious circumstances.

1m = 1 million
1bn = 1 billion = 1000 million

Innovative finance instruments refers risk transformation functionality (e.g.) Conduits, Special Purpose Vehicles (SPV), Structured Investment Vehicles (SIV)). In general, only specialists have insight into how these things work, and there is a reliance on statistical models that do not necessarily adequately reflect reality. And not everyone is aware of which assumptions underlie these models.
ABS = Asset Backed Securities