German bank WestLB to cut up to 1,500 job cuts in rescue plan

FRANKFURT: Troubled regional German lender WestLB is to cut between 1,300 and 1,500 jobs by 2010 as part of a plan announced Friday to turn the bank around.

WestLB shareholders agreed to provide a guarantee of up to five billion euros (7.2 billion dollars) to cover losses from risky trades and exposure to securities backed by subprime US mortgages, a statement said.

The German state of North-Rhine Westphalia, a major shareholder, is to cover up to three billion euros in possible asset write-downs, tthe statement said.

North-Rhine Westphalia owns 38 percent of the bank, while regional savings banks own around 51 percent.

No official figure has been given on WestLB's risky investments and exposure to losses connected with the US subprime mortgage crisis.

The bank and its shareholders have not commented on a 20 billion euros figure for subprime exposure reported in German.