On Monday, BayernLB released a summary of conclusions reached in a law firm's investigation of the bank's acquisition of a majority stake in Hypo Group Alpe Adria, which was later rescued by the Austrian government. The law firm engaged to conduct the investigation was "commissioned to investigate whether the Board of Management and Board of Administration were liable for damages in regard to the acquisition." The report concludes that "all of the former members of the Board of Management are liable," but that "the former members of the Board of Administration [consisting of non-executive directors] are not liable for damages," as they were not grossly negligent. The Board of Administration will be meeting again next week to discuss recommendations about "legal and disciplinary steps to be taken."
BayernLB also disclosed that its "Board of Administration took notice of the report by the law firm Flick Gocke Schaumburg to the Bavarian Parliament about BayernLB’s ABS investments which concluded that the Board of Management and the Board of Administration had both violated their duties," and indicated that the Board of Administration would be analyzing that report and consulting on next steps.