07/10/2009
Supervisory Board Approves Further Milestone for Ring-Fencing Non-Strategic Assets
The Supervisory Board of WestLB has approved the signing of agreements which are intended to lead to the ring-fencing of non-strategic assets with a volume of at least € 87 billion. In this connection the Bank is currently engaged in intensive negotiations with SoFFin.
In a first step a sub-portfolio of structured securities with a volume of up to € 6.4 billion has been guaranteed by SoFFin pursuant to § 8 of the amendment to the Financial Markets Stabilisation Act (FMStFG). For this WestLB´s owners have provided SoFFin with a pro-rata counter-guarantee amounting to € 4 billion. The sub-portfolio will be transferred to a permanent ring-fenced solution by November 30, 2009.
The provisional SoFFin guarantee for the sub-portfolio as well as the next steps leading to the permanent ring-fencing of the entire portfolio will comply fully with the requirements laid down by the European Commission.
Dietrich Voigtländer, Chairman of the Managing Board, said: “These decisions mean that WestLB is on the right track. The Bank is able to fulfil the requirements of the European Commission regarding the reduction of total assets and risk-weighted assets and at the same time successfully strengthen its business model, which is clearly focused on its clients and its competencies.”
In a first step a sub-portfolio of structured securities with a volume of up to € 6.4 billion has been guaranteed by SoFFin pursuant to § 8 of the amendment to the Financial Markets Stabilisation Act (FMStFG). For this WestLB´s owners have provided SoFFin with a pro-rata counter-guarantee amounting to € 4 billion. The sub-portfolio will be transferred to a permanent ring-fenced solution by November 30, 2009.
The provisional SoFFin guarantee for the sub-portfolio as well as the next steps leading to the permanent ring-fencing of the entire portfolio will comply fully with the requirements laid down by the European Commission.
Dietrich Voigtländer, Chairman of the Managing Board, said: “These decisions mean that WestLB is on the right track. The Bank is able to fulfil the requirements of the European Commission regarding the reduction of total assets and risk-weighted assets and at the same time successfully strengthen its business model, which is clearly focused on its clients and its competencies.”