Canada's top banking regulator has taken temporary control of the Canadian assets of a German bank called Maple Bank GmbH.
Maple Bank is headquartered in Frankfurt, Germany, but has a branch in Canada. The branch doesn't take or hold any retail deposits, but mainly deals in securitization, securities financing and structured secured wholesale lending.
In a release, the Office of the Superintendent of Financial Institutions said Wednesday it had moved to "protect depositors and creditors of the Canadian branch of Maple Bank GmbH by taking temporary control of the assets of the branch."
The move comes amid a probe by German regulators who have suspended the bank's activities amid a tax evasion and money laundering investigation.
Earlier this week Quebec-based National Bank said it would write off its 25 per cent investment in the company, which was previously valued at $165 million.
In a release Wednesday, OSFI said it has taken over the bank to "preserve the value of the assets held at the branch in light of the decision of the German prudential regulator to close the bank for business with customers."