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Management of battered German state bank SachsenLB to step down in subprime crisis

Management of battered German state bank SachsenLB to step down in subprime crisis

The remaining board members of Germany's battered SachsenLB will step down, said the state-run bank, which has been buffeted by its exposure to the U.S. subprime credit crisis.
The bank's chief executive, Herbert Suess, will step down Sept. 15 "at his own request," SachsenLB said in a statement Thursday, adding that two other board members would also be leaving immediately.
"This measure is aimed at ensuring the interest of the state of Saxony and its municipalities," said the statement, issued days after the public-sector bank was sold to the Landesbank Baden-Wuerttemberg.
Suess will be succeeded by Joachim Hoof, who is currently chief executive of one of SachsenLB's owners, the Sachsen Finanzgruppe.
A week ago, Stefan Leusder, a SachsenLB executive who oversaw capital markets operations, announced his resignation.
Defaults among subprime mortgage holders have roiled markets worldwide, and the effects have been felt keenly in Germany, especially among public-sector banks.