German banks to repay state aid

The European Commission has concluded its long-standing investigation into the transfer of public assets, in the early 1990s, to seven German regional public banks by ordering Germany to recover 3 billion euro plus interests. The decision ends the probe into the Landesbanken which occupied the Commission for about 10 years and which culminated with a landmark agreement, in 2001 and 2002, on the issue of the state guarantees (Anstaltslast and Gewaehrtraegerhaftung) attached to the banks' statute.

European Commission: IP: IP/04/1261 http://europa.eu/rapid/pressReleasesAction.do?reference=IP/04/1261&format=HTML&aged=0&language=EN&guiLanguage=en

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