display
Giessen (dpa / lhe) - The city of Giessen has invested ten million euros in Greensill Bank, which the financial supervisory authority has closed for the time being due to the threat of over-indebtedness.
The money that was only invested in October and December of last year with two fixed-term contracts should be used for important infrastructure measures in the city, as the city announced on Monday.
This investment is now at risk, said Mayor Dietlind Grabe-Bolz (SPD).
According to a decision by the federal government, savings deposits from municipalities have no longer been protected in the event of bank failures since 2017.
According to the city, the investment decision was preceded by an invitation to tender, in which the rating of the bank and the interest rate were taken into account.
When the October contract was signed, the Greensill Bank had a rating of A-.
When the December contract was signed, the rating was BBB +, which is still considered very good by investors.
"Here all the control and protection mechanisms of the banking supervision have obviously failed," criticized the mayor, naming the banking supervisory authority: "BaFin has let us down.
Your warning would have made us act differently. "
That is why the federal government has a duty to provide information and support.
Grabe-Bolz announced that she would encourage an alliance with other affected cities through the German Association of Cities in order to find ways out of the situation together.
"And I will have legal steps checked."
display
© dpa-infocom, dpa: 210308-99-740412 / 2