Of Special Interest
- Financial wellness affects half of peoples’ mental or physical health, finds report
- Study finds traditional financial institutions embrace Fintech disruption
- Grass is greener for environmentally friendly businesses, finds Barclays
- Prospective homeowners would consider a 40-year mortgage to escape renting, finds Santander
- Millennials’ needs are changing the face of banking industry, says new report
- FS is putting consumer data at risk by failing to protect mobile apps, says Arxan
- A lack of belief in their ability holds 28% women back in work, says Cambridge & Counties
- ‘Which?’ reveals Scotland has lost over a third of its bank branches in eight years
- Next downturn unlikely to be as bad as 2008, according to S&P
- FCA reveals findings from first cryptoassets consumer research
- US consumers favour single mobile app for banking and payments
- Banks suffering major IT shutdowns every day, ‘Which?’ reveals
- The US will be a key offshore centre in 2019, says GlobalData
- Debit industry changes markedly in 10 years of the Debit Issuer Study
- UK's ‘Big Five’ face ‘too big to compete’ as small challengers secure stellar returns
- Banks as vulnerable now as before crash, says new study
- Leverage ratio a constant conundrum for European and US banks, says SNL
16th December 2011
WestImmo sale collapses - more jobs go at WestLB
WestLB announced the negotiations to sell WestImmo to Apollo Group have collapsed. The sale discussions had included significant guarantees by WestLB and the bank states that given this continued liability the price offered by Apollo made the deal impossible. Dietrich Voigtländer, Chairman of the WestLB Managing Board, said: "It was our declared aim to bring the sale negotiations to a conclusion, also with a view to preserving jobs. However, the further deterioration in the market environment and the economic valuation leave us no choice. The transaction and above all extended liability risks would be untenable for the Bank and its owners."
The bank announced last week that Landesbank Hessen-Thueringen (Helaba) was planning to acquire and integrate Verbundbank, the planned spin-off from WestLB containing the wholesale banking operations targeted at German savings banks. Other entities as the bank is broken up include SPM Bank which will take on the portfolio management activities and Erste Abwicklungsanstalt the 'bad bank'.
Separately Reuters reports that given this setback the bank intends to reduce the headcount by a further 1,000, almost 20% of the current total. This will not be an end to the staff reductions. Some estimates of the jobs required by the three new spin off units is of less than 2,000.