Legal minefield at WestLB

THE row at German bank WestLB over losses at its City unit, run by high-profile dealmaker Robin Saunders, is threatening to erupt into a rash of lawsuits.

Tensions centre around a disastrous investment by Saunders' division in TV rental firm Box Clever.

Following a damaging investigation by German regulator BaFin, WestLB was forced to write off its entire £480m stake and to introduce stringent new measures to improve risk controls. The affair led to the departure-of chief executive Juergen Sengera. WestLB's powerful supervisory board is now considering legal action against Sengera for 'mismanaging' the Box Clever deal.

Other lawsuits are on the cards as, insiders say, 'a lot of cross people look for someone to blame'.

Workers' representatives, who make up 50% of WestLB's supervisory board, are considering suing the rest of the board for allegedly bringing the bank into disrepute. They accuse the board of deliberately leaking details of the BaFin probe to the media as part of a plot to depose Sengera.

The employees, along with ousted director Andreas Siebert, are also threatening to sue BaFin for damages.

Saunders' future has been the subject of speculation. She wants to buy out the investment portfolio of her division, which includes a water company, cinemas and pubs. She has always said she was not a key player in putting together the Box Clever deal.