WestLB Engaged in Intensive Negotiations with SoFFin
No application by WestLB for support from the security reserve of the Landesbanks
WestLB is engaged in intensive and constructive negotiations with SoFFin aimed at ring-fencing a portfolio of non-strategic activities with a volume of approximately € 85 billion in a workout entity pursuant to § 8a of the amendment to the Financial Market Stabilisation Act (FMStFG). In this connection important legal liability issues have still to be clarified, in particular with SoFFin and the owners of WestLB as future supporting institutions of a workout entity. With a view to covering their obligations arising from possible future losses incurred by the workout entity, the Savings Banks and Giro Associations of the Rhineland and Westphalia-Lippe (RSGV and WLSGV), as joint owners of WestLB, have held discussions on a possible recourse to the security reserve of the Landesbanks. WestLB itself has at no point applied for support from the security reserve of the Landesbanks.