WestLB ‘s headquarters in Düsseldorf. Source: AP
HB FRANKFURT / DUESSELDORF. The four banks Irish Anglo, Hapoalim , Mizrahi Tefaot and Arab Banking Corporation and the Offshore Fund Justinian complain that the WestLB in a U.S. action , it sent the funds managed by its investment vehicles, Harrier and Kestrel by " fraud and other crimes based on " how the "Wirtschaftswoche"On Saturday reported previously .
The investors have put the application according to some $ 500 million in debt securities of Harrier and Kestrel , two -run outside of WestLB ‘s balance sheet special purpose entities, the magazine further. In an application for WestLB to dismiss the complaint it is stated that the applicants are experienced investors who have invested in subordinated securities and is now trying to recoup losses .
WestLB shows the allegations " vigorously back . "They were professional investors, " said a spokesman for WestLB . "They were aware that they are buying risky securities. " The plaintiffs accuse the Landesbank According to " Business week before , " having sold the valuable papers too late , thus preventing a payout to investors. WestLB has filed a motion to dismiss the action. " WestLB believes the allegations are without merit and is confident of getting right, " said the spokesman.