Zorba
Bos 4 Mod
- JANUARY 26, 2011, 12:46 P.M. ET
By William Launder, Andreas Kissler and Alessandro Torello
Of DOW JONES NEWSWIRES
BERLIN/BRUSSELS (Dow Jones)--The German government and European Commission on Wednesday said they expect state-backed German lender WestLB AG to show progress in sorting out its restructuring measures and ownership structure by a Feb. 15 deadline set by the commission.
The comments underline increasing pressure on WestLB's management and shareholders to reduce the bank's risks and find new owners by the end of 2011 as a condition for accepting bailouts to survive the crisis.
European Competition Commissioner Joaquin Almunia hinted Wednesday that he wouldn't extend a Feb. 15 deadline for WestLB to submit a new restructuring plan.
"What I want to say today is a deadline is a deadline," Almunia said.
The deadline to present new restructuring measures was set in November after the commission alleged that WestLB had inflated the value of assets transferred into its bad bank, and in the process used an extra EUR3.4 billion in state funds. WestLB last year transferred around EUR77 billion in assets into the EAA, including up to around EUR5 billion in non-conforming securities from WestImmo.
Steffen Kampeter, state secretary in Germany's Finance Ministry, Wednesday said he expects a solution for the restructuring of state-controlled German lender WestLB AG will be reached by the Feb. 15 deadline.
"The [German] government welcomes the talks between the owners and the European Commission that have advanced in recent weeks, and we expect a solution by Feb. 15," Kampeter told Dow Jones Newswires on the sidelines of a parliamentary session.
Kampeter emphasized the responsibility of the owners of WestLB, which include the state of North Rhine-Westphalia and regional savings banks associations.
The savings banks associations have proven particularly reluctant supporters of the WestLB sale process and possible restructuring measures, because they could result in significant write-downs to their equity stake in the bank and a broader loss of influence in the region.
An executive committee presiding over the WestLB sales process is expected to meet Feb. 15 in Brussels with the commission and German government officials including Finance Minister Wolfgang Schaeuble to discuss the awaited restructuring plan.
Pointing to possible progress by WestLB in its revamp efforts, people familiar said Wednesday that WestLB could propose a sharp reduction in the balance sheet of its real estate finance business, WestImmo, which would make the unit more palatable for an acquisition.
WestLB separately said Wednesday that its Chief Financial Officer, Hans-Juergen Niehaus, would step down April 30.
-By William Launder, Dow Jones Newswires
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Bah... finirà a tarallucci e vino, con WestLB che cede Westimmo e, al più, entra nel capitale di WestLB qualche banca. WestLB è potere politico territoriale, non hanno interesse a smatellarla.
Basta vedere qui da noi come è finita per le banche traballanti di medio-grandi dimensioni...
Poi magari toppo clamorosamente...
![Che stia per naufragare? :titanic: :titanic:](/images/smilies/titanic.gif)