Enforced break-up looms for WestLB

WestLB, the stricken German lender, could be broken up as a result of European Union demands for a restructure to avoid it being wound down.

WestLB, among Germany’s top 10 banks by assets, was bailed out twice during the financial crisis of 2008-10 and European competition authorities have ordered its owners to present a binding restructuring plan by 15 February 2011. Germany’s government, which helped WestLB with €3bn of capital during the crisis, is adamant it will not give more aid.

ESO: Background information: State aid: European Commission extends investigation into WestLB's bad bank and restructuring http://www.europeansources.info/record/press-release-state-aid-european-commission-extends-investigation-into-westlbs-bad-bank-and-restructuring/

ESO: Background information: WestLB could heighten Brussels dispute http://www.europeansources.info/record/westlb-could-heighten-brussels-dispute/

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