# Gewährträgerhaftung (public guarantee obligation)

- Canonical URL: https://www.gerhardmerk.de/gewahrtragerhaftung-public-guarantee-obligation
- Post ID: 592640
- Modified: 2023-07-25T20:59:52+00:00
- Language: en

## Definition

The liability of public-sector budgets - municipalities, districts, federal states - for their savings banks and Landesbanken, which existed in Germany until July 2005 and was then abolished on the instructions of the EU Commission. This liability guarantee meant that the relevant institutions were able to act with virtually no risk. They were able to buy capital cheaply and lend it on to other banks at a high price. The guarantor's liability also induced some Landesbanks to engage in reckless and very loss-making operations. - See Rating, Verticalization, Westdeutsche Landesbank. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

## Machine-readable

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