Stuttgart prosecutors said on Thursday they had accepted a proposal by Judge Hartmut Schnelle to close the case against former LBBW Chief Executive Siegfried Jaschinski and six other managers, who sat on LBBW's board from 2006 to 2008.

The trial was a rare case of a European bank's entire executive board being held accountable for actions in the run-up to the 2008/9 global financial crisis.

While the judge had said in February that his preliminary assessment showed the managers unlawfully failed to disclose risks in off-balance sheet special-purpose vehicles (SPVs) in 2005 and 2006, subsequent testimony from two independent expert witnesses did not fully prove the charges.

Under the terms of the settlement, Jaschinski is to pay 50,000 euros $69,000 (41,147.36 pounds) to a charitable institution, while the other managers, including LBBW's currently suspended deputy chief executive Michael Horn, must pay 40,000 euros each.

"Given the professional and personal burden, my ex-colleagues and I have agreed to the settlement of the case in exchange for payment," Jaschinski said in a statement.

"At the same time we remain convinced that we acted absolutely correctly," said Jaschinski, who stepped down as LBBW chief in 2009 and now works for Frankfurt-based investment bank Main First.

The case was one of several legal battles in Germany to determine responsibility for management decisions surrounding the crisis. Managers from BayernLB , HSH Nordbank and corporate lender IKB (>> IKB Deutsche Industriebank AG) have faced trial, and a number of investigations of lenders are still under way.

(Reporting by Andreas Kroener; writing by Jonathan Gould; editing by Tom Pfeiffer)