M&A on Trial Has Ex-BayernLB Bank Managers Risking Prison
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For seven former Bayerische Landesbank executives, a deal that led to 3.7 billion euros ($5 billion) of losses may land them in prison as they face a first-of-its-kind criminal trial over the bad bet.
The men went on trial in Munich today over claims they overpaid by 550 million euros when they purchased a majority stake of Hypo Alpe-Adria-Bank International AG for 1.63 billion euros in May 2007. They’re charged with “breach of trust,” a criminal offense unique to German-speaking countries that punishes misuse of other people’s money.