The Norddeutsche Landesbank in Hannover faces a decisive week. Without an Equity injection of at least 3.5 billion euros, is considered to be not viable. If the state of lower Saxony, almost 60 percent of the Nord LB, filled the capital gap, alone, could values the EU Commission as state aid and the sale of the Nord LB up to a certain period of time to arrange.
editor in the economy.
F. A. Z.
In the case of the West LB in 2012, failed of such privatization in the absence of prospective purchasers, and West LB under went largely. Many in the Sparkasse group have this case now before our eyes, and therefore, are working on a catch-all solution for the ailing Landesbank, with a volume estimated at 2 billion euros.
Northern savings banks
not overwhelmed applying This money could, the savings banks in lower Saxony, Mecklenburg-Western Pomerania and Saxony-Anhalt, where 35 percent of the Nord / LB belongs to, alone. Therefore, representatives of the liability Fund of the landesbanken (the”hedging reserve discussed on Monday”), how much money could come out of this guarantee Fund.
in addition, other bodies of the savings Bank group met on Monday, to make the standard solution on a broader nationwide Basis. These Meetings served to prepare for a conversation with the supervisor, to be held on Tuesday in Frankfurt.
savings Bank President Helmut Schleweis searches for the meaning of the often self-interests pursued savings banks to raise members of the management Board and the regional savings Bank President, that a resolution of the Nord LB, with the participation of creditors, in accordance with the new Directive for Bank support, would be for the savings Bank group as a Whole, the most expensive of the crisis. According to estimates, it would cost around 10 billion euros.
Sparkassen-privileges on the Brink
A majority of the money, the savings banks and their customers would have to apply, because you have a lot of subordinated bonds of Nord LB. This, in support of case capital downstream shot. But also private investors, and customers would lose money.