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Mayor of German city hit by Greensill losses will not search re-election By Reuters 

© Reuters. FILE PHOTO: The brand of Greensill Financial institution is pictured in downtown Bremen, Germany, July 3, 2019. REUTERS/Fabian Bimmer/File Picture

FRANKFURT (Reuters) – The mayor of Nordenham, one of many German cities hardest hit by losses on funds with the failed Greensill Financial institution, stated on Wednesday that he wouldn’t run for re-election as he takes political accountability for the investments.

German cities and cities had parked round 500 million euros ($611.40 million) of their financial savings with Greensill Financial institution, which collapsed earlier this yr as a part of financier Lex Greensill’s bancrupt Greensill Capital.

Greensill Financial institution, based mostly in Bremen, grew to become a sexy draw for municipalities comparable to Nordenham as a result of it didn’t cost charges on deposits, which grew to become more and more unusual because of European Central Financial institution (ECB) insurance policies to spur the financial system.

Within the wake of the financial institution’s collapse, quite a lot of the affected cities have banded collectively as they search to recoup a few of their funds, which weren’t protected by a German deposit assure programme.

The Nordenham mayor, Carsten Seyfarth, stated in an announcement his choice to not run in September was because of the Greensill fiasco and the shadow it could forged over the election.

“Even when I’m not conscious of any private or authorized misconduct, it’s in the end a matter of assuming political accountability, which now lies with the mayor as head of the town administration,” he stated.

Nordenham, simply north of Bremen, had positioned 13.5 million euros with the financial institution, practically all of its short-term time deposits.

Seyfarth, in an interview with Reuters earlier this yr, stated the city’s final funding was in February, only a week earlier than dangerous information in regards to the financial institution’s issues grew to become public, which was “particularly painful”.

($1 = 0.8178 euros)

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