Two more German banks admit exposure to Lehman failure"

Business Materials 19 September 2008 16:49 (UTC +04:00)

Two more German public banks, Bayern LB and NRW Bank, disclosed Friday they were exposed by the collapse this week of US investment bank Lehman Brothers, reported dpa.

The admissions came a day after a federally controlled German bank KfW said its exposure to Monday's Lehman failure totalled 536 million euros (772 million dollars).

In a letter to staff obtained by Deutsche Presse-Agentur dpa, Munich-based Bayern LB, which is controlled by Bavaria state, put its risk at up to 300 million euros (432 million dollars).

"Like many other banks active worldwide, our company had a business relationship over many years with Lehman Brothers," said the letter signed by Bayern chief executive Michael Kemmer.

He said accountants were still comparing which sums were credits and which were debts to establish the net exposure, but the figure so far was "up to 300 million."

NRW Bank, controlled by the state of North Rhine Westphalia, said it had lent money to Lehman Brothers, but declined to say how much. "They weren't problem investments," said a spokesman.