Deutsche Bank, Landesbank, IKB, WestLB & German Bank Bailouts

Yesterday, Deutsche Bank reported NO WRITEDOWNS...

Last year, Landesbank Sachsen AG and IKB Deutsche Industriebank AG, two German state owned banks, received multi-billion-euro bailouts.

Today, owners agreed to provide $7.2 billion to bail out another state owned German Bank, WestLB AG.

The owners, including the state of North Rhine-Westphalia and two regional savings-bank associations, agreed to cover WestLB's potential losses.

WestLB is getting financial aid from its owners for the third time in four years and looking for a merger partner after posting a $1.5 billion loss in 2007.

The bank will shift securities into a new off balance sheet unit and cut as many as 1,500 (25%) of its 5,900 staff.

Comments