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German Bank Sets Up Settlements Operation

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WestLB A.G. has asked a unit of Life Partners Holdings Inc. to form a special purpose entity that will originate life settlements.

WestLB, Dusseldorf, a bank that is partly owned by the German state of North Rhine-Westphalia, “is not affiliated with Life Partners and the committed facility imposes no debt or other material contractual obligations on Life Partners,” according to Life Partners, Waco, Texas.

WestLB recently reported losing the equivalent of about $50 million before income taxes during the first half on $400 billion in assets. The losses were due mainly to $800 million in proprietary trading losses, the bank says.