Press Release: State aid: Commission approves € 6.7 billion guarantee for SdB – Sicherungseinrichtungsgesellschaft deutscher Banken mbH

The European Commission approved, under EC Treaty state aid rules, a € 6.7 billion SoFFin-guarantee for SdB – Sicherungseinrichtungsgesellschaft deutscher Banken mbH, a banking entity of the German private banking industry. The guarantee aims to bolster the German Deposit Protection Fund and to pre-finance future proceeds from the estates of insolvent Lehman Brothers entities. The Commission found the measure to be in line with its Guidance Communication on state aid to overcome the current financial crisis. The guarantee was necessary to avoid a serious disturbance in the German economy and to ensure the stability of the German banking sector while avoiding undue distortions of competition and was therefore compatible with Article 87.3.b. of the EC Treaty.