Financial Times FT.com

Bank warning intensifies German disquiet

By Ivar Simensen and Ralph Atkins in Frankfurt

Published: August 21 2007 20:47 | Last updated: August 21 2007 20:47

The uncertainty gripping Germany’s banks intensified Tuesday after the chief executive of one of its leading lenders issued an unusually frank warning about the troubled state of the country’s banking industry.

“We sense in the markets that the readiness of foreign banks to extend credit lines to German banks has become difficult,” said Alexander Stuhlmann, chief executive of WestLB, the state-backed Düsseldorf-based Landesbank.

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