The head of Germany's Bundesbank, Ernst Welteke, resigned yesterday after coming under heavy criticism for taking a free hotel stay from a commercial bank.
The central bank's executive council said Mr Welteke offered his resignation and it accepted it - the decision was 'appropriate with a view to the bank's reputation'.
Mr Welteke, Bundesbank president since 1999, had been on leave since last week as prosecutors and the bank investigated his New Year stay at Berlin's posh Hotel Adlon two years ago. His resignation followed thinly veiled calls from the government for him to go. The finance ministry said his decision 'deserves respect'.
Pressure on Mr Welteke has grown since Der Spiegel reported two weeks ago that he let Dresdner Bank pay a Euro7,661 (HK$71,461) hotel bill for him and his family. He was attending a ceremony organised by Dresdner Bank to mark the introduction of euro notes and coins.
The Bundesbank's duties include supervising commercial banks such as Dresdner Bank.
Mr Welteke subsequently paid for two days of the four-day stay, while the Bundesbank reimbursed Dresdner Bank for the other two, saying they were working days.