KfW suspends two board members over Lehman transfer.
Global Banking News - 30 September 2008(c)2005 - Electronic News Publishing - http://www.enpublishing.co.uk
German state lender KfW has fired two board members over the transfer of around EUR300m to Lehman Brothers (NYSE: LEH) (OTC: LEHMQ.PK) on the day the US bank filed for bankruptcy, Reuters has reported citing a statement by the finance and economy ministries.
KfW's board of supervisory directors decided that Peter Fleischer and Detlef Leinberger would have to leave their posts with immediate effect, the statement said. The two board members had already been suspended.
KfW (KFW.UL) has said that it had mistakenly transferred the funds to Lehman to unwind a swap agreement.
The Economy and Finance ministries also said the board backed management would examine KfW's risk management and business processes thoroughly. 'The supervisory board reiterates that Germany needs a strong development bank and thus supports the KfW board and all staff in the aim of steering KfW back into calmer waters as soon as possible so it can focus on core duties again,' the statement added.
According to sources, German lender's total exposure to Lehman was EUR536m, including the Lehman transfer, the report said.
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|Publication:||Global Banking News (GBN)|
|Date:||Sep 30, 2008|
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