Earlier this year, the bank received payment orders, or Zahlungsbefehle, from the Bundesanstalt für vereinigungsbedingte Sonderaufgaben (BvS) – the authority responsible for managing the assets of the former German Democratic Republic (GDR) for CHF110m, plus accrued interest since 2009.
The BvS has now filed a claim against the bank with the District Court of Zurich for CHF100m, plus accrued interest since 1994.
BvS claims that the former Bank Cantrade, which Bank Julius Baer & Co. acquired through its acquisition of Bank Ehinger & Armand von Ernst AG from UBS AG in 2005, allowed between 1989 and 1992 withdrawals from the account of a foreign trade company established by former officials of the GDR. The withdrawals took place during the reunification of East and West Germany following the decades-long Cold War.
Julius Baer released a statement today saying it is contesting the BvS’s claims and that it has “taken measures to protect its interests”. It added that the claim “has been notified under representations and warranties obtained from the Seller of Bank Cantrade as per the respective transaction agreement from 2005”.
