WestLB AG and Helaba, which plans on buying parts of the German lender, are close to an agreement that would see Helaba avoid a potential 230 million euros ($288 million) of derivative losses, Die Welt reported.
Helaba would take on the derivative portfolio as part of a sale, though 150 million euros of potential losses from the position would be assumed by the German savings banks in North Rhine-Westphalia that co-own WestLB, the newspaper reported, without saying where it got the information. The remaining 80 million euros of potential losses will be guaranteed by Portigon, the entity that will replace WestLB after it is wound down, the report said.
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