15 Legal cases

Due to the nature of the business LLB Group is involved in various disputes and legal proceedings arise in the ordinary course of business. LLB Group makes provisions for such matters when, in the opinion of management and its professional advisors, it is probable that a payment or loss will be made by Group companies, and the amount can be reasonably estimated. All provisions for legal proceedings are included in the item provisions in the balance sheet.

As previously disclosed in the 2011 annual report, the LLB is under investigation by the US Department of Justice regarding its business conduct. Within the context of these investigations, it is being clarified in relation to former or current US clients, whether the LLB has complied with US law, in particular US tax law and securities regulations. The situation as regards risks is unchanged since the publishing of the annual financial statement, i. e. currently the risks can neither be assessed nor quantified.

The bank has re-evaluated the risks regarding cross-border business in relation to US clients and has reached the conclusion that no provisions are necessary at the present time.

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