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7 current and former WestLB execs investigated over suspected company law violations

7 current and former WestLB execs investigated over suspected company law violations

Prosecutors in Duesseldorf are investigating seven current and former executives of the German state-owned bank WestLB AG, a spokesman said Wednesday.
The suspects, only one of whom was identified, were suspected of violating Germany's companies law in connection with massive losses in speculative transactions earlier this year, prosecutors' spokesman Arno Neukirchen said Wednesday. He did not elaborate on the charges.
Former chief executive Thomas Fischer, who stepped down last month in a leadership change amid massive trading losses in speculative transactions, was named by prosecutors as one of those being investigated. He was not immediately reachable for comment.
The bank said in a statement it was interested in "a very thorough explanation of the charges, as swiftly as possible" and pledged to continue to work with investigators.
Earlier this year, German media reported that an investigation by Bafin, Germany's financial services watchdog, had revealed that the bank's board had known about and tolerated risky trading practices since the start of the year.
So far, the bank has said that losses from trading speculation amounted to euro70 million (US$96 million) in the first three months of the year. The bank also said at the time that it divested large parts of its trading portfolio, resulting in losses of euro173 million (US$236 million) in April.
WestLB subsequently fired, and filed criminal charges against, two traders, alleging market manipulation.


Updated : 2021-07-27 01:34 GMT+08:00