Bank boss denies any wrongdoing

CEO Klaus-Peter Mueller is a veteran Commerzbank executive

The chief executive of Commerzbank has denied any wrongdoing after his name was added to an investigation into allegations of money laundering.

German prosecutors are looking into whether the nation's third biggest bank helped siphon off millions of dollars from Russian firms in the 1990s.

The investigation into Commerzbank was widened at the weekend to include chief executive Klaus-Peter Mueller.

He led the bank's central and eastern Europe operations until 1999.

Staff letter

Mr Mueller denied any wrongdoing in an internal letter to Commerzbank staff at the start of this week that has now been released by the bank.

"I am convinced that I have neither done nor given my approval to anything wrong, and will work with all my strength for our bank," he said.

Mr Mueller added that investigators had given him no reasons as to why he had been added to the ongoing probe.

Five executives and former staff at Commerzbank are already under investigation.

The inquiry alleges that the bank helped siphon off vast quantities of cash from Russian state firms during the 1990 post-Soviet privatisations.

Takeover rumours

Mr Mueller's successor, Andreas de Maiziere, resigned last month after German and Swiss authorities began investigating the case.

The current probe is examining the role of Commerzbank staff in a number of transactions related to Russian telecommunications firm Telecominvest.

Prosecutors are examining private deals that diluted the holdings of state-owned companies in Telecominvest.

They also are checking to see if investment funds were used to launder assets from the phone company.

The investigation into Commerzbank comes at the same time as it faces renewed speculation that it is a potential takeover target.

France's BNP Paribas has been linked with a possible bid, but Mr Mueller has said that there are currently "no discussions" with any potential suitors.

He has headed Commerzbank since 2001.