Volksbank Board Member to Leave After Brothel Loan Probe
A German Volksbank board member is stepping down despite an independent law firm finding no financial wrongdoing in a pandemic-era loan linked to a brothel. Prosecutors are still reviewing the transaction.
A Volksbank Koeln Bonn board member will leave the lender on Tuesday despite an internal investigation clearing him of wrongdoing over a €5M ($5.6M) loan. The departure comes as prosecutors continue a separate bribery probe into the financing of a Cologne brothel. The case puts a spotlight on risk controls at Germany's cooperative banking sector.
