Mayor of German town hit by Greensill losses won’t seek re-election By Reuters

0


© Reuters. FILE PHOTO: The logo of Greensill Bank is pictured in downtown Bremen, Germany, July 3, 2019. REUTERS/Fabian Bimmer/File Photo

FRANKFURT (Reuters) – The mayor of Nordenham, one of the German towns hardest hit by losses on funds with the failed Greensill Bank, said on Wednesday that he would not run for re-election as he takes political responsibility for the investments.

German towns and cities had parked around 500 million euros ($611.40 million) of their savings with Greensill Bank, which collapsed earlier this year as part of financier Lex Greensill’s insolvent Greensill Capital.

Loading...

Greensill Bank, based in Bremen, became an attractive draw for municipalities such as Nordenham because it did not charge fees on deposits, which became increasingly uncommon as a result of European Central Bank (ECB) policies to spur the economy.

In the wake of the bank’s collapse, a number of the affected towns have banded together as they seek to recoup some of their funds, which were not protected by a German deposit guarantee programme.

Loading...

The Nordenham mayor, Carsten Seyfarth, said in a statement his decision not to run in September was due to the Greensill fiasco and the shadow it would cast over the election.

“Even if I am not aware of any personal or legal misconduct, it is ultimately a matter of assuming political responsibility, which now lies with the mayor as head of the city administration,” he said.

Loading...

Nordenham, just north of Bremen, had placed 13.5 million euros with the bank, nearly all of its short-term time deposits.

Seyfarth, in an interview with Reuters earlier this year, said the town’s last investment was in February, just a week before bad news about the bank’s problems became public, which was “especially painful”.

Loading...

($1 = 0.8178 euros)

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Loading...
instant= new adsenseLoader( '#quads-ad4-place', { onLoad: function( ad ){ if (ad.classList.contains("quads-ll")) { ad.classList.remove("quads-ll"); } } });

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Loading...

Stay connected with us on social media platform for instant update click here to join our  Twitter, & Facebook

We are now on Telegram. Click here to join our channel (@TechiUpdate) and stay updated with the latest Technology headlines.

Loading...

For all the latest Education News Click Here 

 For the latest news and updates, follow us on Google News

Loading...

Read original article here

Denial of responsibility! TechiLive.in is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.

Loading...
Leave a comment