Commission opens in-depth investigation into restructuring of WestLB

01 October 2008

The investigation will evaluate whether the envisaged restructuring is capable of restoring the long-term viability of the bank, whether state support is limited to the minimum necessary, and whether compensatory measures should be put in place.

The Commission opened an in-depth investigation into state support measures in favour of the German bank WestLB. The investigation will evaluate whether the envisaged restructuring is capable of restoring the long-term viability of the bank, whether state support is limited to the minimum necessary, and whether compensatory measures should be put in place to minimise potential distortions of competition created by the aid.

 

On 8 February 2008, the State of North Rhine-Westphalia set up a risk shield for WestLB to protect it against the volatility of its €23 billion structured investment portfolio, because of difficulties arising from the sub-prime crisis in financial markets.

 

Press release

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