WestLB probe drags in more execs

THE WestLB criminal probe is widening to take in more bank executives, according to media reports in Germany.

Chief executive Johannes Ringel may be caught in the spotlight. He took over from Jurgen Sengera, who was forced out due to the BaFin regulatory probe into losses at British TV rental company Boxclever.

The losses arose from a £748m securitisation financed by the bank's London unit headed by golden-girl Robin Saunders. The BaFin probe criticised risk measures at the bank, which has been trying to put its house in order ever since.

German newspapers reported that more members of the bank's executive committee are now under investigation for failing in their duties regarding the Boxclever losses.

Ringel was on the executive committee at the time but no names have been offered by prosecutors and the bank is not commenting.

The crisis surrounding beleaguered WestLB and its high-flying London dealmakers will come to a head in January when the public prosecutor in Dusseldorf will decide whether to go for indictments. By then Boxclever may well have been sold or be on the market as insiders say the German bank wants rid of it.

While the future of Robin Saunders is said not to be in question, the ongoing problems clearly impinge on her and her team.

Moody's downgraded the company's financial strength rating earlier this year and the fate of the London unit remains in the balance.