German bank raided in sub-prime investigation
Authorities raided offices of the Sachsen LB bank as part of an investigation into questions surrounding the US sub-prime mortgage crisisBerlin -- German police on Tuesday carried out a series of raids on the homes and offices of former board members of the previously state-owned Sachsen LB, which had been hit by the fallout from the US subprime mortgage market crisis.
Altogether about 28 properties were searched, German federal police and state prosecutors said, with the action forming an ongoing investigation into Sachsen LB launched late last year after its exposure to subprime assets cast doubt on its future prospects.
The searches were conducted across Germany including in the states of Saxony, Saxony-Anhalt, Baden Wuerttemberg, North Rhine Westphalia, Hesse and Berlin as well as Sachsen LB offices in Dublin.
Sachsen LB emerged as one of the early victims of the financial market and credit crisis triggered by a surge in defaults on risky US mortgages.
Since then another state-owned bank, Landesbank Baden Wuerttemberg has stepped in to buy Sachsen LB.