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Prosecutors raid KfW over Lehman transfer

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Prosecutors raid KfW over Lehman transfer


The Frankfurt headquarters of the German
government-owned development bank KfW has been raided by prosecutors.

They are investigating how hundreds of millions of euros was transferred by KfW to the US investment bank Lehman Brothers hours after it declared itself bankrupt.

Prosecutors said they want to determine whether those in charge of KfW “violated their legal obligations to safeguard assets by failing to block the transfer of funds.”

A spokesman for the bank said: “KfW will fully cooperate with the prosecution and will give any information and hand over any documents that the prosecution requests for the investigation.”

The automatic transfer of almost 320 million euros occured on 15 September, the same day Lehman Brothers made the biggest bankruptcy filing in US history.

Prosecutors said it was made despite knowledge of signs of liquidity problems at Lehman Brothers and against the background of an emerging international banking crisis.

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