German Bank Successor Liable For $1.2B Cum-Ex Tax Debt
By Joseph Boris (September 30, 2021, 6:42 PM EDT) -- The entity that acquired toxic assets from German commercial bank WestLB after it collapsed amid the 2008 financial crisis must pay a nearly €1 billion ($1.2 billion) scandal-related tax debt, a court said in a decision favoring another WestLB successor.
Wednesday's ruling by the Regional Court in Frankfurt, Germany, said Portigon AG, which runs the financial services business once operated by WestLB, was entitled to collect the money from Erste Abwicklungsanstalt, or EAA.
EAA was formed during the 2012 wind-down of WestLB to serve as a so-called bad bank that would inherit its portfolio of nonperforming loans. That process also involved...
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