WestLB Split-Up Jeopardized by New Risks, Handelsblatt Reports

The split-up of WestLB AG is being jeopardized after additional risks were discovered at the lender’s Verbundbank unit, Handelsblatt reported, citing unidentified people in the financial industry.

Landesbank Hessen-Thueringen, which plans to take over the unit, isn’t ready to assume liability for a 4.2 billion euros ($5.3 billion) derivatives package with a negative value of 300 million euros that was discovered in Verbundbank’s portfolio, the newspaper said.

WestLB’s owners and Helaba are scheduled to meet tomorrow to seek a solution on the issue, according to Handelsblatt.

To contact the reporter on this story: Karin Matussek in Berlin at kmatussek@bloomberg.net

To contact the editor responsible for this story: Anthony Aarons at aaarons@Bloomberg.net.

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.