Table: Taking Orders from the Pols

Germany's Landesbanken lend money based as much on clout as on credit ratings


Bankgesellschaft-Berlin lends recklessly to local developers at the behest of Berlin's government and gets saddled with billions in bad debts.

EARLY 2001

Bavarian Prime Minister Edmund Stoiber sponsors a $1 billion Bayerische Landesbank loan to Kirch Group.

NOV.-DEC., 2001

Political pressure persuades WestLB and related savings bank Stadsparkasse Dusseldorf to help rescue tour-airline operator LTU International.

FEB.-MAR., 2002

Bernd Rohwer, economics minister of Schleswig-Holstein, urges Landesbank Schleswig-Holstein to back MobilCom's July debt refinancing. The bank is expected to agree.

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