Press Release: State aid: Commission opens in-depth investigation into restructuring of WestLB

The European Commission opened under EC Treaty state aid rules an in-depth investigation into state support measures in favour of the German bank WestLB. This is a first step towards finding a viable long-term solution, in close contact with the German authorities. As a consequence of investments in US sub-prime markets, WestLB ran into financial difficulties. In February 2008, the owners of the bank, i.e. the Land of North Rhine Westphalia (NRW) and the savings banks associations, provided a risk shield of €5 billion that was authorised by the Commission as temporary rescue aid on 30 April 2008. As this measure continues to be necessary for the bank to overcome its difficulties, Germany has notified a restructuring plan. The opening of an investigation is common for state interventions of this magnitude and will ensure legal certainty for the companies concerned. It also gives interested parties the possibility to submit their comments. It does not prejudge the outcome of the procedure.

European Commission: SPEECH/08/478: Paraffin wax cartel and bank rescues http://europa.eu/rapid/pressReleasesAction.do?reference=SPEECH/08/477&format=HTML&aged=0&language=EN&guiLanguage=en

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