Bloomberg News

WestLB Split-Up Jeopardized by New Risks, Handelsblatt Reports

June 11, 2012

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.


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