When Friedel Neuber steps down as chief executive of Westdeutsche Landesbank in August, after 20 years at Germany's most powerful wholesale bank, he will be leaving an organisation on the brink of a radical shake-up. Accused by competitors of having unfair advantages and hauled before the European Union competition commissioner, WestLB is being forced to break up its banking empire.

Nor is WestLB the only one in the firing line. Germany's entire public banking sector may also be shorn of its government guarantees.