Financial institution fears high losses
Scandal bank terminates Effenberg’s consulting job
February 29, 2024, 1:04 a.m
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The “Effenberg Bank” continues to write headlines. The VR Bank in Salzungen Schmalkalden is said to be in a bad financial situation. The financial institution is now parting ways with the former football professional who gave it the nickname.
The “Effenberg Bank” without Stefan Effenberg. This is what it will look like in the future. Because VR-Bank Salzungen Schmalkalden terminated the former Bundesliga professional’s advisory position on April 1st. This is reported by the “Handelsblatt”. A spokesman confirmed “that the exit from the football business has been decided.” Accordingly, there will be no future role for Effenberg, whom the financial institution hired in 2018 in its credit department for the “Corporate Customer Competence Team Football”.
Once hired as a specialist: Stefan Effenberg.
(Photo: IMAGO/Sven Simon)
The bank had granted loans to professional clubs for years, Effenberg was supposed to provide support in order to better assess the risks in the football sector. Since then, the VR branch has often been referred to as the “Effenberg Bank”.
It is uncertain how the bank is doing financially. There are currently no audited annual financial statements for 2022. It can be assumed “that there is a loss that is not covered by half of the total amount of business balances and reserves,” explained Volksbank-Raiffeisenbank in a mandatory announcement. According to “Handelsblatt” it’s a three-digit million sum. The entire issue will be explained at the general meeting on March 26, the bank said.
The financial institution has been criticized for weeks. At the end of 2023, two board members and the entire supervisory board resigned. The Volksbank is currently under a kind of guardianship, and BAFIN has already sent two special representatives. The financial regulator has been in dispute with the bank for a long time and recently demanded that the Thuringians hold significantly more equity. The Thüringer Bank currently continues to operate unusual businesses and owns several properties in the Oberhausen red light district, including several brothels. The bank remains silent about the reason for the investment, seller, prices and plans.