http://www.nytimes.com/2010/01/12/business/global/12landesbank.html
The mishandling of funds by Bayerische Landesbank, a state-owned German bank based in Munich may bring change to the German banking system. Being a state-owned bank, BayernLB has resulted in cries from rivaling commercial banks, economicsts and European Union antitrust regulators to reevaluate the German banking system. BayernLB has been forced to scale back their operations, essentially resulting in more space for private-sector banks such as Deutsche Bank and other commercial banks to step in and have more impactful positions in the German economy. Although Germany is currently the largest economy in Europe, their big banks have the lowest profit margins among Western European countries.
The mistakes by BayernLB have forced for a larger separation between government involvement in the banking sector and will eventually result in the restructuring of the banking system in Germany.
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