 Hamstrung by his reliance on the banks and criticism from the SPD Laufenberg's stock fell dramatically and he faced widespread demonstrations against his leadership.Unable to sustain his position, Laufenberg resigned on 19 January 1919 and handed leadership of the Council over to the SPD.Before long Laufenberg moved towards the Communist Party of Germany (KPD) and before long the local party had come under the control of Laufenberg and his ally Fritz Wolffheim.