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