Offices and apartments in Dublin and across Germany were raided today as part of the investigation into multi-million euro losses at German bank SachsenLB.
Documents, correspondence, computers and electronic data were seized as evidence in the 28 properties that were searched. Five former SachsenLB board members have been under investigation since October.
'There is a suspicion that the former board members put the existence of the bank at risk through expanding business, for which the bank was ultimately jointly liable, with only limited equity,' Leipzig prosecutors said in a joint-statement with Germany's federal criminal investigation bureau.
SachsenLB, a state-owned regional bank from eastern Germany, was one of Europe's biggest casualties of the US sub-prime mortgage crisis. Landesbank Baden-Wuerttemberg (LBBW) spent $17 billion bailing it out last year.
A large proportion of SachsenLB's losses came from Dublin-based operations Ormond Quay Funding plc and Georges Quay Funding I Ltd, which were worth €23 billion in the second half of 2007.
Prosecutors believe that managers' acted irresponsibly by failing to publish some of their activities, thus preventing other executives from stepping in.