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German court reverses acquittal of ex-HSH Nordbank executives
October 12, 2016 / 3:31 PM / a year ago

German court reverses acquittal of ex-HSH Nordbank executives

FRANKFURT, Oct 12 (Reuters) - Germany’s Federal Court of Justice reversed a decision to acquit ex-managers of bailed-out lender HSH Nordbank of charges that included accounting fraud, handing the high-profile case back to a regional court.

The acquittal “did not stand up to a legal review”, the Federal Court of Justice said in a verdict on Wednesday, adding that it would return the case to the Hamburg court.

The HSH trial was one of the first cases of a European bank’s entire executive board being tried for actions taken in the run-up to the financial crisis.

The case against six former board members, including former Chief Executive Dirk Jens Nonnenmacher, dealt with whether they properly accounted for a deal they struck in 2007 that reduced the bank’s capital requirements but later resulted in 500 million euros ($560 million) of writedowns.

They were acquitted by the Hamburg regional court in 2014, triggering an appeal by the public prosecutors office that sought to have the verdict overturned.

HSH, along with other regional state-owned German banks, lost billions of euros on risky investments.

Its owners - the state of Schleswig-Holstein, the city state of Hamburg and local savings banks - propped it up with a 3 billion-euro capital injection and 10 billion euros in loan guarantees. ($1 = 0.8928 euros) (Reporting by Christoph Steitz; Editing by Georgina Prodhan)

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