DUESSELDORF, Germany, June 5 (Reuters) - The owners of WestLB have reached an agreement in principle on the breakup of the German lender, Norbert Walter-Borjans, the finance minister of the German state of North Rhine-Westphalia said.
The federal government still needs to approve the plan, he said on Tuesday. WestLB is owned by North Rhine-Westphalia and local savings banks.
As part of planned restructuring, WestLB will be split into a regional bank dubbed Verbundbank, and the rest of its activities, which will be sold off or transferred to a “bad bank” known as Erste Abwicklungsanstalt (EAA), to be wound down. (Reporting by Matthias Inverardi; Writing by Maria Sheahan)