CASE COMMENTS: STATE AIDS - SERIOUS DISTURBANCE IN THE ECONOMY OF A MEMBER STATE – CONDITIONS OF COMPATIBILITY

Conditions of compatibility : The General Court of the European Union considers that the Commission could make the compatibility of a restructuring aid to a bank conditional on its sale by its public shareholders (Westfälisch-Lippischer Sparkassen – und Giroverband)

*This article is an automatic translation of the original article, provided here for your convenience. Read the original article. In the wake of the subprime crisis, WestLB ran into serious difficulties which forced it to resort to a hive-off structure to accommodate its risky mortgage assets. The Land of North Rhine-Westphalia had to guarantee the repayment of the bonds issued by the hive-off vehicle up to €5 billion, which allowed the hive-off vehicle to purchase the assets from WestLB at their nominal value. The guarantee was intended to rescue WestLB, which was one of the largest financial services providers in Germany and provided a link between the savings banks of that Land and of the Land of Brandenburg, of which it was the central bank, and the global financial markets. This

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  • European Commission - Legal Service (Brussels)

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Bruno Stromsky, Conditions of compatibility : The General Court of the European Union considers that the Commission could make the compatibility of a restructuring aid to a bank conditional on its sale by its public shareholders (Westfälisch-Lippischer Sparkassen – und Giroverband), 17 July 2014, Concurrences N° 4-2014, Art. N° 69989, pp. 194-198

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