Cooperative banks: Jürgen Wache to become head of troubled Volksbank Brawo

Frankfurt - The troubled Volksbank Brawo, based in Braunschweig and Wolfsburg, has appointed a new chief executive officer. Formerly the chief executive of the neighboring Hannoverschen Volksbank, Jürgen Wache will take over the leadership, the bank announced on Wednesday. Wache served as the head of the Hannoverschen Volksbank for 18 years before retiring in June.

The 66-year-old has stated that Volksbank Brawo will now focus "significantly more than before on core banking operations." The bank aims to significantly reduce its investment portfolio as well as its segments in real estate and green energy. Volksbank Brawo, which has a massive portfolio of over 400 subsidiaries and subsidiaries, is in need of assistance from the support fund of the cooperative industry association BVR.

It appears that the bank will have to make do with a middle-sized three-digit million euro in negative revaluations in its investment portfolio, it was recently rumored in financial circles. At the beginning of May, the bank dismissed its longtime chief executive, Jürgen Brinkmann. At that time, the bank had also announced that it was preparing a request for support from the BVR rescue mechanism. The move was deemed sensible to secure the planned reorientation.