LBBW Managers Tried on Subprime ABS Accounting Charges
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Germany’s third criminal case over failed investments at bailed-out state lenders started today in Stuttgart as current and former managers of Landesbank Baden-Wuerttemberg went on trial.
Seven serving or former management board members and two external auditors from PricewaterhouseCoopers LLP face charges that subprime risks were hidden from the lender’s 2005 and 2006 accounts. The Stuttgart-based bank invested in asset-backed securities through off-balance-sheet vehicles that should have been accounted for, prosecutors said.