Treuhand

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The Treuhand (Treuhandanstalt or Treuhand agency) was the agency that privatized the East German enterprises owned as public property (common property). Created by the Volkskammer on June 17, 1990, it oversaw the restructuring and selling of about 8,500 firms with initially over 4 million employees. At that time it was the world's largest industrial enterprise.

Its operations drew heavy criticism for unnecessary closing off of profitable businesses, misuse and waste of funds and unnecessary layoffs. When its operations ended in 1994, it had amassed 260 to 270b DM in debt. It had gained a mere 30b DM from sales of its units.

The former chairman of the Treuhand, Detlev Karsten Rohwedder was shot by an unknown assassin and succeeded by Birgit Breuel.

[edit] References

Mark Cassell, How Governments Privatize: the Politics of Divestment in the United States and Germany, Georgetown University Press, 2002.