By Aaron Kirchfeld
Aug. 30 (Bloomberg) -- Landesbank Sachsen Girozentrale, the German state-owned bank ravaged by investments in U.S. subprime mortgages, had ``secret'' investments of up to 46 billion euros ($63 billion), Sueddeutsche Zeitung said, citing Saxony's government finance committee.
In addition to off-balance sheet investments in Dublin, SachsenLB also created so-called conduits in Leipzig in 2003 under the code name ``Dublin II,'' the newspaper said. The 13 affiliates in both cities account for the lion's share of the bank's off-balance sheet total of 65 billion euros, the newspaper reported.
The risks stemming from these investments for Landesbank Baden-Wuerttemberg, which agreed to buy SachsenLB on Sunday, remain open, the newspaper said.
SachsenLB's supervisory board has accused the bank's management board and Saxony's finance ministry of ``grave mistakes'' in information policy and denying requests for additional data about the risks of the Dublin-based investments,
the newspaper said.
SachsenLB spokesman Frank Steinmeyer couldn't be immediately
reached for comment.
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