June 5, 2012 / 10:37 AM / 5 years ago

WestLB owners agree in principle on breakup

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)

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