How Fischer’s plans fell apart at WestLB
Differing levels of efficiency
| Betting on the wrong horse | ||||||||
| Landesbanks’ direct sub-prime mortgage exposures | ||||||||
| Landesbank | Direct sub-prime mortgage exposures (€bln) | Adjusted assets 2006 (€bln) | Sub-prime mortgage exposure (% of assets) | Tier 1 capital (€bln) | Sub-prime exposure (% of Tier 1 capital) | ATE (€bln) | Sub-prime exposure (% of ATE) | Operating pretax profit 2006 (€bln) |
| Landesbank Hessen-Thüringen Girozentrale | 0.0 | 168 | 0.0 | 5.4 | 0.0 | 4.9 | 0.0 | 0.4 |
| Norddeutsche Landesbank Girozentrale | 0.0 | 203 | 0.0 | 6.4 | 0.0 | 6.1 | 0.0 | 0.6 |
| Landesbank Baden-Württemberg | Not disclosed | 428 | N/A | 10.8 | N/A | 12.0 | N/A | 1.2 |
| WestLB AG | 1.3 | 285 | 0.4 | 7.2 | 17.3 | 5.9 | 21.4 | 0.3 |
| Bayerische Landesbank | Not disclosed | 353 | N/A | 12.6 | N/A | 10.3 | N/A | 0.9 |
| HSH Nordbank AG | 1.8 | 189 | 1.0 | 8.4 | 21.8 | 4.8 | 38.5 | 0.7 |
| Landesbank Sachsen Girozentrale | Not disclosed | 68 | N/A | 1.4 | N/A | 1.1 | N/A | 0.1 |
| Total | Not disclosed | 1,694 | <1 | 52.3 | <20 | 45.1 | <20 | 4.3 |
| ATE – Adjusted total equity. N/A – Not available. | ||||||||
| Source: Standard & Poor’s | ||||||||
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