Germany indicts former CEO of top public bank

25th June 2007, Comments 0 comments

25 June 2007, Dusseldorf (dpa) - German authorities said Monday they had indicted a former chief executive of a publicly owned bank, WestLB, for alleged misappropriation in connection with a 1999 loan. Juergen Sengera, 64, resigned in 2003 amid controversy over the bad loan to Boxclever, a British leasing company. Prosecutors in the western city of Dusseldorf allege that Sengera, while he was chief of special financing at WestLB, approved a loan of 1.35 billion euros (1.8 billion dollars) without sufficien

25 June 2007

Dusseldorf (dpa) - German authorities said Monday they had indicted a former chief executive of a publicly owned bank, WestLB, for alleged misappropriation in connection with a 1999 loan.

Juergen Sengera, 64, resigned in 2003 amid controversy over the bad loan to Boxclever, a British leasing company.

Prosecutors in the western city of Dusseldorf allege that Sengera, while he was chief of special financing at WestLB, approved a loan of 1.35 billion euros (1.8 billion dollars) without sufficiently assessing the risks.

WestLB, once Germany's fifth-biggest bank, is controlled by public savings banks in Germany's most populous state, North Rhine Westphalia. It cut back its international lending after the Boxclever crisis.

Sengera was its chief executive from 2001 to 2003. He resigned after a rebuke from German financial regulators, who requested that prosecutors open an inquiry.

DPA

Subject: German news

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