Bloomberg News

Porsche, LBBW ‘XXL’ Probes May Drag Into 2013, Prosecutors Say

March 12, 2012

Probes into Porsche SE’s 2008 trades of Volkswagen AG (VOW) shares and Landesbank Baden- Wuerttemberg’s subprime investments will probably continue well into 2013, prosecutors handling both cases said.

Investigators need to retain most of the additional staff they’ve been assigned to handle the cases, which are more demanding than most, Siegfried Mahler, head of the Stuttgart Prosecutors’ Office, told reporters today. White-collar crime units have seven additional prosecutors through the end of this year. They’ve asked the state government for permission to keep at least five for next year, said Mahler.

“These are XXL cases,” Mahler said at a press conference in Stuttgart, meaning extra-extra-large. “They require extreme levels of input and manpower and we are optimistic that we will be able to keep the extra staff.”

The prosecutors said last week they charged former Porsche SE (PAH3) Chief Financial Officer Holger Haerter and two other managers with credit fraud related to the refinancing of a 10 billion- euro ($13.1 billion) loan in 2009 for the carmaker’s failed Volkswagen takeover bid. Allegations former Porsche executives Wendelin Wiedeking and Haerter manipulated the price of VW shares are still under investigation and prosecutors had said March 6 those probes could take until at least the middle of this year to be resolved.

Former managers at Stuttgart-based LBBW are under investigation for claims they improperly approved investments in U.S. mortgage bonds.

Both cases have been under way since 2009, when investigators raided suspects’ offices and homes.

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


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