7.11.2006 Official Journal of the European Union L 307/1 (Acts whose publication is not obligatory) COMMISSION COMMISSION DECISION of 20 October 2004 on State Aid implemented by Germany for Landesbank Berlin — Girozentrale (notified under document number C(2004) 3924) (Only the German text is authentic) (Text with EEA relevance) (2006/736/EC) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Commu- nity, and in particular the first subparagraph of Article 88(2) thereof, Having regard to the Agreement on the European Economic Area, and in particular Article 62(1)(a) thereof, Having called on the Member State and other interested parties to submit their comments pursuant to the provisions cited above (1) and having regard to their comments, Whereas: L PROCEDURE (1)  The subject of these proceedings is the transfer, by the Land of Berlin, of Wohnungsbau-Kreditanstalt Berlin, with its assets, to Landesbank Berlin — Girozentrale. There are a further six cases in which proceedings have been initiated against Germany in connection with transfers of assets to Landesbanks, and in particular to Westdeutsche Land- esbank — Girozentrale (‘WestLB). (2) By letter of 12 January 1993, the Commission asked Germany for information on the circumstances and reasons () O] C 239, 410.2002, p. 12. which had given rise to a capital increase in WestLB through the incorporation of the housing organisation Wohnungsbauforderanstalt (WfA) and on similar increases in the own funds of the Landesbanks of other Lander. Germany replied in March and September 1993, providing a description of the transfer of Wohnungsbau-Kreditanstalt Berlin to Landesbank Berlin — Girozentrale. The Commis- sion requested further information in November and December 1993, which Germany provided in March 1994. Berlin was explicitly mentioned in the first of the two requests. By letters of 31 May and 21 December 1994, the Bundesverband deutscher Banken e.V. (BdB’), an association representing private banks established in Germany, informed the Commission that, as at the close of 31 December 1992, Wohnungsbau Kreditanstalt Berlin (‘WBK’) had been transferred, with its assets, to Landesbank Berlin — Girozentrale (LBB’), while the tasks previously assigned to WBK had been transferred to the recently set-up Investitionsbank Berlin (1BB’), which was operating as a division of LBB. This increased the own funds at LBB's disposal, and, in the BdB'’s view, distorted competition in LBB’s favour since the parties had not agreed any remuneration which might be in line with the principle of the market-economy investor. In its second letter, the BdB accordingly lodged a formal complaint and called on the Commission to initiate proceedings against Germany under Article 93(2) of the EC Treaty (now Article 88(2)). The complaint also related to similar transfers of assets to Westdeutsche Landesbank, Norddeutsche Landesbank, Landesbank Schleswig-Holstein, Hamburger Landesbank and Bayerische Landesbank. In February and March 1995 and December 1996 several banks associated themselves individually with the complaint lodged by the BdB.