WestLB to be first German lender to use bad bank

FRANKFURT, August 12 (Reuters) - German Landesbank WestLB has applied to the German government to transfer 6.4 billion euros ($9.04 billion) in toxic assets into a bad bank by September 30, several people familiar with the bank told Reuters late Wednesday.

The move would make WestLB the first German institution to make use of the so-called bad bank scheme, set up by the German government, so that banks can transfer toxic assets off their balance sheets.

By year-end WestLB plans to transfer further assets into the bad bank, these people said.

News of WestLB's efforts to make use of the bad bank was first reported by German daily papers Handelsblatt and Boersen-Zeitung in advance copies of their Thursday editions.

WestLB declined to comment. The German government's rescue fund, also known as Soffin, declined to comment. (Reporting by Matthias Inverardi and Patricia Uhlig, writing by Edward Taylor. Editing by Robert MacMillan)