L 307/110 Official Journal of the European Union 7.11.2006 COMMISSION DECISION of 20 October 2004 implemented by Germany for Hamburgische Landesbank — Girozentrale, now HSH Nordbank AG (notified under document number C(2004) 3928) (Only the German text is authentic) (Text with EEA relevance) (2006/740[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 procedure concerns the transfer of shares in Hambur- gische Wohnungsbaukreditanstalt (WK’) to Hamburgische Landesbank — Girozentrale (HLB) by the Land of Hamburg (FHH’). 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 Landesbank — Girozentrale (‘WestLB). (2) By letter of 12 January 1993, the Commission asked Germany for information concerning the circumstances of, and reasons for, a capital increase in WestLB resulting from the incorporation of Wohnungsbauforderanstalt (WfA) and similar increases in the own funds of the Landesbanks of other Ldnder. Germany replied in March and Septem- ber 1993 and, in response to further Commission requests dated 10 November and 13 December 1993, provided additional information in March 1994. In addition to information concerning WfA’s transfer to WestLB, the German replies referred to similar transfers in Lower Sax- ony, Berlin and Schleswig-Holstein. (3) By letters of 31 May and 21 December 1994, the Bundesverband deutscher Banken e.V. (BdB'), an association representing private banks established in Germany, () O] C 81, 4.4.2003, p. 24. informed the Commission among other things that, with effect from 1 January 1986 and 1 January 1993, FHH had transferred shares in WK to HLB directly or indirectly. This increased the own funds at HLB’s disposal and, in the BdB’s view, distorted competition in its favour since the parties had not agreed remuneration consistent with the market- economy investor principle. (4) In its second letter, the BdB accordingly lodged a formal complaint and requested the Commission to initiate proceedings under Article 93(2) of the EC Treaty (now Article 88(2)) against Germany. The complaint also related to similar transfers of assets to Westdeutsche Landesbank in North Rhine-Westphalia, Norddeutsche Landesbank in Lower Saxony, Landesbank Schleswig-Holstein (LSH) in Schleswig-Holstein, Landesbank Berlin in Berlin and Bayerische Landesbank in Bavaria. In February and March 1995 and December 1996 several banks associated themselves individually with the complaint lodged by their association. (5) The Commission investigated first the transfer of shares to WestLB. By Decision 2000/392/EC, (%) it finally found that the difference between the remuneration paid and the normal market return constituted state aid incompatible with the common market and ordered recovery of the aid. This decision was annulled by the Court of First Instance of the European Communities on 6 March 2003 as insufficient reasons had been given for two of the factors used to calculate the appropriate remuneration, but it was confirmed in all other respects. () Alongside the present Decision, the Commission is adopting a new decision on WestLB which takes account of the Court’s criticisms. (6) On 1 September 1999 the Commission sent Germany a request for information on the transfers of assets to the other Landesbanks, including HLB. By letter of 8 December 1999, Germany submitted information on the transfer of WK to HLB which it supplemented by letter of 22 January 2001. ) OJL 150, 23.6.2000, p. 1. (®) Joined Cases T-228/99 and T-233/99 [2003] ECR 1I-435.