German federal bank sacks two executivesSeptember 29th, 2008 - 6:15 pm ICT by IANS
Berlin, Sep 29 (DPA) KfW, a bank run by Germany’s federal government, has sacked two of its seven executive board members because of a blunder that cost the bank hundreds of millions of euros.The supervisory board of the bank had met Sunday to decide the fate of Detlef Leinberger and Peter Fleischer, who had earlier been suspended from their duties after the Black Monday error, costing 350 million euros ($504 million), was disclosed.
KfW staff failed to unwind a swap with Lehman Brothers on the day the US investment bank failed.
German Economics Minister Michael Glos said that after legal advice, both men had been dismissed with immediate effect. A review of the bank’s operations was under way.
KfW administers Berlin’s soft loans programmes for industry, home owners and students and also holds a financial portfolio for the government. A headline in the mass-circulation German newspaper, Bild, dubbed it “Germany’s stupidest bank” after the blunder.